Edgar G. Hull v. Commissioner

Memorandum Findings of Fact and Opinion

The Commissioner determined a deficiency of $955.01 in income tax of the petitioner for 1945. The only issue for decision is whether the petitioner was a "bona fide resident" of Saudi-Arabia during 1945 within the meaning of section 116(a)(1).

Findings of Fact

The petitioner resided with his wife and two minor children in a trailer near Los Angeles just prior to October 20, 1944. He had worked for many years as a warehouseman.

He signed a contract for temporary employment with Compania Constructora Bechtel-McCone, S.A., for work in Ras Tanura, Saudi-Arabia. The employer was building a refinery there for the Arabian-American Oil Company. The employment was for a term of 18 months.

The petitioner left Los Angeles on October 20, 1944 and, with many other employees of the same employer, reached Saudi-Arabia on or about December 26, 1944. He completed his work and left Saudi-Arabia on April 4, 1946, to return to his family in Los Angeles where he obtained employment as a warehouseman in the United States.

The employer provided transportation to and*301 from Saudi-Arabia, lodging in a barracks, and food in a mess hall for the petitioner and other employees during the employment. Employees were restricted in their travel while in Saudi-Arabia.

The petitioner had a passport issued by the State Department of the United States for the purpose of his trip. He paid no taxes in Saudi-Arabia.

The petitioner's family remained in or near Los Angeles while he was gone. He had no thought of taking them to Saudi-Arabia while he was there.

The petitioner received $6,360.04 as compensation for his service during 1945 while working in Saudi-Arabia. That was more than he could earn in the United States.

The petitioner was not a bona fide resident of Saudi-Arabia during any part of 1945 within the meaning of section 116(a)(1), Internal Revenue Code.

Opinion

MURDOCK, Judge: This case must go against the petitioner upon authority of prior decisions. See Arthur J. H. Johnson, 7 T.C. 1040; Michael Downs, 7 T.C. 1053, affirmed 166 Fed. (2d) 504, cert. den. 334 U.S. 832.

Decision will be entered for the respondent.