When it comes to the foreign earned income exclusion, a federal appeals court has upheld a ruling that Antarctica does not qualify as a foreign country.The Seventh Circuit court affirmed a U.S. Tax Court decision that the 2001 earnings of a U.S. citizen living in Ross Island, Antarctica, are subject to federal taxes.

The petition was brought by, Dave Arnett, a U.S. citizen and an employee of Raytheon Support Services Co., who worked on the continent while working at McMurdo Station, a research center that typically receives personnel and cargo enroute to the South Pole. Raytheon is under contract with the National Science Foundation for research conducted at the station.

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