Why do scientists working in Antarctica have to pay US federal income tax?

Question

I studied geology for a few years and know a geologist who is currently working in Antarctica. I also previously lived and worked overseas and know that for American expatriates, the first $70,000.00/yr is exempt from Federal income tax because expats are responsible for paying local taxes in a foreign country. From what he says, however, he must pay and said it was because per the United States Tax Code Antarctica is not a foreign country, therefore it is exempt from the Foreign Earned Income Exclusion. http://www.irs.gov/businesses/small/international/article/0,,id=97130,00.html

Last I heard, Antarctica was not a part of the U.S. Do Russian, French or scientists from other countries who are working in Antarctica have to pay taxes to their homeland?

Izzy and Ralph... FYI.. he isn't complaining about paying taxes. It just occurred to me that it didn't make sense, so I asked the question.

perhaps a better question would be why does the US Tax Code not see Antarctica as a foreign country?

Bostonia... that answers my latter question.. thanks

exactly my question v.b. in the harshest of conditions, too. Between the two federal agencies, geologists seem to be between a rock and a hard place ;)

Answer 1

To claim the Foreign Earned Income Exclusion you must either have a residence in a FOREIGN COUNTRY or meet the physical presence test in a FOREIGN COUNTRY. The rule is NOT "outside the US" but IN A FOREIGN COUNTRY. If you are in international waters (say on a ship) you are NOT in a FOREIGN COUNTRY.

Antarctica is NOT a country. It is a continent that by international treaty is not owned by any nation. And since it has no permanent human population or government it is NOT a foreign country under the tax code.

What the personnel from other countries have to pay is up to their home country. The US is actually one of the few that taxes its citizens when they are outside the country so it's likely that many of the non-US folks there don't have to pay any tax on their income.

Answer 2

you have become some issues puzzled right here. First the Federal earnings Tax is carefully distinctive than taxes customarily. we don't ought to pay Federal earnings Tax. there became right into a e book noted as The regulation That by no potential became into by employing bill Benson and M.J. "purple" Beckman. interior the e book they in actuality end that there wasn't sufficient states that unquestionably exceeded the sixteenth modification. this could recommend that the sixteenth modification should not be enforced. additionally previous acceptable lawsuits struck down rules that Congress exceeded till now the sixteenth modification became into no longer even concept-approximately. whilst human beings undertaking the government, they ussually do what they do superb shop on with rigidity to the citizen or usher in twelve attorneys on your one or in case you ask the IRS instruct me the regulation. The IRS only stonewalls ya. something i think of hasn't been pronounced is that Congress additionally would not have the capability to a right away tax ought to be proportioned between the states(Article a million section 9 Clause 4). that's notice worth because of the fact the earnings tax is innovative and for this reason won't be ready to proportioned between the states. attending on your different element approximately only undeniable taxes, on a similar time as maximum taxes the government gets is incredibly lots out of our administration. The federal excise for highways is immediately paid whilst your on the gasoline pump. This additionally is going for all revenues tax besides. those taxes are constitutional for this reason ought to be paid (Article a million section 8 Clause a million).

Answer 3

I do have sympathy for the workers assigned there. The IRS has ruled that since Antartica is not a foreign country, so the foreign earned income exclusion does not apply....yet the Federal Labor board ruled that it isn't the US either, so they don't get time and a half overtime....

Answer 4

Antarctica is a 'no man's land', by international agreement. It is not a country, nor is any of it claimed by any other country on the planet. There are no taxes of any kind levied by Antarctica, since it has no government. Thusly, those who work there are employed as if they were working in their own country.

Answer 5

he's still a US citizen, right?

he's not getting taxed twice, as in living in foreign country, so what's the issue? freedom is not cost free.

Who runs those icebreakers and supply ships? who sends in help if something goes wrong? who pays for that?

he could renounce his citizenship if he really wants out of the taxes, I suppose.

Answer 6

try and not pay taxes for your stay there. you will spend some time in a federal pen.