Ellsworth M. Dunn v. Commissioner of Internal Revenue

Petitioner, Ellsworth M. Dunn, a citizen of the United States, seeks reversal of a decision of the Tax Court holding that there were deficiencies in respect of his Federal income tax for 1948 and 1949. He relies for reversal on the following provisions of § 116 of the Intern al Revenue Code, 53 Stat. 48 ,. 56 Stat. 841 , 58 Stat. 32 , 26 U.S.C.A. § 116 : ■

“In addition to the items specified in section 22(b), the following items shall not be included in gross income and shall be exempt from taxation under this chapter t

“(a) Earned income from sources without the United States.

“(1) Foreign resident for entire taxable year. In the case of an individual citizen of the United States, who establishes to the satisfaction of the Commissioner that he is a bona fide resident of a foreign country or countries during the entire taxable year, amounts received from sources without the United States (except amounts paid by the United States or any agency thereof) if such amounts constitute earned income as defined in paragraph (3); * * *

“(3) Definition of earned income. For the purposes of this subsection, ‘earned income’ means wages, salaries, professional fees, and other amounts…