Case Name: Appeal of GEO. H. SALMON
Court: United States Board of Tax Appeals
Jurisdiction: United States
Decision Date: 1926-02-17
Citations: 3 B.T.A. 838
Docket Number: Docket No. 5783
Parties: Appeal of GEO. H. SALMON.
Judges: Before Phillips and Trammell.
Reporter: Reports of the United States Board of Tax Appeals
Volume: 3
Pages: 838–839

Head Matter:
Appeal of GEO. H. SALMON.
Docket No. 5783.
Submitted January 11, 1926.
Decided February 17, 1926.
Geo. E. Kennedy, Esq., for the taxpayer.
B. G. Simpieh, Esq., for the Commissioner.
Before Phillips and Trammell.

Opinion:
OPINION.
Phillips:
Whether the taxpayer was a resident or nonresident alien of the United States after May, 1922, is practically a moot question. The return filed by the taxpayer showed gross income of $5,000, against which a personal credit of $2,900 was claimed, leaving taxable income of $2,100, upon which a tax of $84 has previously been assessed. The deficiency determined by the Commissioner is the amount of tax, as he computes it, in excess of the $84 previously assessed. If the taxpayer was a resident throughout the year 1922, as he claims, the deficiency must be disallowed. On the other hand, if the taxpayer became a nonresident in 1922, the Commissioner was in error in including the entire compensation for the year as taxable income to the taxpayer. As a nonresident alien the taxpayer would be taxable only upon such portion of the $5,000 as was paid him for services rendered within the United States, or $2,083.33, being five months' salary. Deducting from this the exemption of $1,000 allowed a nonresident alien leaves taxable income of $1,083.33, upon which the tax at 8 per cent would be $82.67, or $1.33 less than the amount assessed upon the original return.