William Chin Cecily Chin v. United States

The United States appeals the district court’s judgment after a bench trial in favor of Dr. William Chin and his spouse Cecily Chin in Dr. Chin’s action for a refund of federal income taxes for the 1985 tax year. The government claims the district court clearly erred in finding that Chin was an independent contractor, rather than an employee, of the Agency for International Development (“AID”). If Chin was an independent contractor for tax year 1985, he qualifies for the “foreign earned income” exclusion from gross income under § 911 of the Internal Revenue Code, 26 U.S.C., and is thus entitled to a refund of federal income taxes, penalties, and interest in the amount of $35,-878 for 1985. We have jurisdiction, 28 U.S.C. § 1291 , and affirm.

BACKGROUND

William Chin is a world renowned specialist in malariology and holds both a master’s degree in Public Health and a medical degree. In December of 1982, Dr. Chin entered into a two-year “personal services contract” with AID to serve as the malaria control advisor to the Country of Pakistan. AID, a U.S. agency, establishes this country’s development assistance policy and provides information, technical advice, supplies and personnel…