Miller v. Commissioner

1988 T.C. Memo. 397, 55 T.C.M. 1717, 1988 Tax Ct. Memo LEXIS 424
Procedural entryThis page is a short order in Miller v. Commissioner. Read the opinion of the Court — 85 T.C. 1064
United States Tax Court·Decided August 25, 1988·No. Docket Nos. 9881-86; 13417-86; 25644-86; 27970-86; 35355-86.·Unpublished

Opinion

THOMAS W. MILLER and RITA M. MILLER, ET AL., 1 Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Miller v. Commissioner
Docket Nos. 9881-86; 13417-86; 25644-86; 27970-86; 35355-86.
United States Tax Court
T.C. Memo 1988-397; 1988 Tax Ct. Memo LEXIS 424; 55 T.C.M. (CCH) 1717; T.C.M. (RIA) 88397;
August 25, 1988.
C. Jerre Lloyd, for the petitioners.
Arlene A. Blume, for the respondent.

RAUM

MEMORANDUM FINDINGS OF FACT AND OPINION

RAUM, Judge: The Commissioner determined deficiencies in petitioners' income tax as follows:

PetitionersDocket No.Tax yearAmount
Miller9881-861983$  9,468.00
Britt13417-86198216,116.20
Poirrier25644-8619829,858.00
198310,733.00
Lemay27970-86198310,471.86
Bujol35355-86198311,155.00

The issue is whether each petitioner-husband is a "qualified individual" eligible to exclude foreign earned income from his gross income under section 911(a). 2

The facts have been fully stipulated and are incorporated herein by this reference. For*426 convenience, and because the facts in each docket are so similar, we group together the findings of fact with respect to all the petitioners, noting briefly therein the minor differences between them.

Petitioners all resided in Louisiana at the time their petitions herein were filed. In the years at issue, the husbands (sometimes hereinafter referred to collectively as petitioners or, individually, as petitioner) all worked for Penrod Drilling Company (hereinafter Penrod) on offshore oil rigs outside of the United States. Two of the petitioners, Miller and Poirrier, worked on rigs in the North Sea in the territorial waters of the Netherlands near Den Helder of that country. Two more, Britt and Lemay, worked on rigs in the Mediterranean Sea in the territorial waters of Tunisia, North Africa. 3 The last petitioner, Bujol, worked on a rig in the Persian Gulf in the territorial waters of the United Arab Emirates near Abu Dhabi. The countries in the territorial waters of which the rigs were located are sometimes hereinafter referred to as the host countries. Four of the petitioners, Miller, Britt, Poirrier, and Bujol, were employed as toolpushers. The other petitioner, Lemay, was*427 employed as a drilling superintendent. For working overseas, each petitioner received a 25 per cent bonus over the wages he would have received had he worked on a site in the continental United States.

Each petitioner had a schedule which required him to work on the oil rig for extended periods of either 14, 28, or 56 days at a time alternating with rest periods of the same length. Under these schedules in the years at issue petitioners spent the following number of days outside the United States: Miller, 182; Britt, 180; Poirrier, 175 in 1982 and 190 in 1983; Lemay 124; 4 and Bujol, 197. Each spent his rest period at home in Louisiana, with the travel both home and back to the rig occurring during the rest period. For each petitioner except Britt it is stipulated that Penrod made the transportation arrangements and paid the cost of the transportation between his home and the drilling*428 site.

In the years at issue, each petitioner either owned or maintained a house in Louisiana. Moreover, each had a wife and at least one child living in that home throughout the year. With the exception of Lemay's wife, petitioners' wives did not work outside the home. Each petitioner owned a car which was kept in the United States and registered in Louisiana, maintained a Louisiana driver's license, was registered to vote in that state, and maintained bank accounts there. In addition, petitioner Britt owned a royalty interest in a one acre tract of land in his home town in Louisiana, petitioner Poirrier raced his car in the Louisiana area, and petitioner Bujol held hunting and fishing licenses as a Louisiana resident.

During their work periods petitioners were provided with food and living quarters on the oil rigs. Generally, petitioners spent the entire work period on the drilling rig. On the rig located in the North Sea all the employees were either American or Dutch; on the rigs in the Mediterranean and the Persian Gulf, the employees included*429 citizens of the United States, the host country, and other countries.

Contact with the country in the territorial waters of which the rig was located varied amongst the petitioners depending on the location of the rig and the position that the petitioner held.

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Miller v. Commissioner, 1988 T.C. Memo. 397, 55 T.C.M. 1717, 1988 Tax Ct. Memo LEXIS 424 (tax 1988).

1988 T.C. Memo. 397 (Miller v. Commissioner) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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