IRS Unit Has Authority in Australia Tax Treaty Contract Spat

A director in the IRS’s Large Business & International Division has the authority to execute tax agreements for US workers at an Australian intelligence base, the US Tax Court said in a precedent-setting opinion.

Cory Smith, a US citizen, began working in 2009 at Pine Gap, a satellite surveillance base in Australia that is jointly operated by Australia and the US. Upon starting his assignment, he completed a closing agreement waiving his right to make an election to exclude foreign earned income under tax code Section 911(a) on his tax returns. The closing agreement was binding with the ...