IRS' reach extends into international airspace

03/19/2013 | JournalofAccountancy.com

Wages earned by a flight attendant in international airspace are subject to U.S. taxation, the U.S. Tax Court says. The U.S. expatriate, who is a Hong Kong resident and works on flights between Asia and the U.S., claimed that 100% of her pay is excludable under the foreign-earned-income exclusion.

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