The opinion of the court was delivered by: Adair, District Judge.
This cause coming on to be heard on the plaintiff's complaint,
the answer of the defendant and the stipulation heretofore filed
by the parties and the Court having heard the testimony of the
plaintiff, the arguments of counsel and having examined the
briefs submitted by both parties and being fully advised in the
premises hereby finds:
2. That in the latter part of December 1949 plaintiff left
Peoria, Illinois, for New York City and boarded an airplane on
December 28, 1949, for the purpose of proceeding to Saudi Arabia
pursuant to his contract of employment; that the plaintiff
arrived at Lisbon, Portugal, on December 29, 1949, proceeded to
Rome, Italy, where he arrived on December 30, and then proceeded
to Cairo, Egypt, where he arrived on January 1, 1950; that
plaintiff worked at his company's office in Cairo until January
3. That plaintiff remained in Saudi Arabia until March 15, 1950
when he was transferred to Basara, Iraq, at which place he
continued to work for his said employer until December 28, 1950,
at which time he departed for Cairo, Egypt, where he stayed for
two days and then proceeded to Paris, France, where he arrived on
December 31, 1950; then he left Paris January 1, 1951 enroute to
the United States and arrived in New York City on the same day.
4. That during the period the plaintiff was in Saudi Arabia his
work consisted of rendering service for his employer to airline
passengers and the handling of administrative details for air
freight; that one of the plaintiff's duties was the supervision
of native help in and about the airport; that during the period
the plaintiff was stationed in Iraq he held the title of
"Operations Officer" for his company and became acquainted with
the Mayor of Basara and the local game warden, represented his
employer at a reception for the King of Iraq, attending a wedding
ceremony of one of the native employees of his company and in
other ways became acquainted with the people and customs of the
countries in which he was employed.
5. That during the period the plaintiff was overseas he was not
restricted in any way by his employer in the matter of selecting
housing accommodations nor did his employer provide meals or
lodging for him.
6. That according to the stipulation on file the plaintiff paid
the sum of $180.88 to the Government of Iraq for income taxes on
his earnings for the year 1950 and that the plaintiff received a
credit for said taxes pursuant to the provisions of Section 131
of the Internal Revenue Code, 26 U.S.C.A. § 131, on his 1950
income tax return.
7. That on May 17, 1951, the plaintiff paid to V.Y. Dallman,
Collector of Internal Revenue for the Eighth District of
Illinois, the sum of $621.85, plus interest in the sum of $6.62
as income taxes for the year 1951.
8. That on or about May 25, 1951 plaintiff filed a claim for
refund of said taxes which claim was disallowed by John B.
Dunlap, Commissioner of Internal Revenue.
From the foregoing facts it is the opinion of this Court that
the plaintiff was a bona fide resident of a foreign country or
countries during the entire taxable year 1950 within the meaning
of Section 116(a)(1) of the Internal Revenue Code, 26 U.S.C.A. §
116(a)(1), and that the wages paid to him for said foreign
service in the amount of $5,972.77 were received from sources
without the United States and were exempt from income tax under
the provisions of the aforesaid section of the Internal Revenue
Judgment is hereby granted the plaintiff against the defendant
for the sum of $628.45 plus interest as provided by law from ...