Pine Gap Contractor Abandons Foreign Tax Case in Front of Judges

The first citizen to challenge the US authority to tax employees working at the Pine Gap military base in Australia abandoned his arguments before a panel of judges.

In scheduled oral arguments at the US Court of Appeals for the D.C. Circuit, Cory Smith disavowed all of his legal positions against the IRS. Smith, a US citizen who began working at Pine Gap in 2009, had been contesting the IRS ability to penalize him for excluding wages from his income after having signed a closing agreement that waived the right to do so under IRC Section 911(a).

“My client ...