Originally Posted by
chignutsak
Sure, if you fail to meet the guidelines. Follow the rules - document where you are, don't sweat it.
WRONG. Talk to the dozen or so that are being audited and have been audited, that followed all the rules and documented all and even sent in copies of their resident visas with their returns. The TCOs, tax compliance officers, are interpreting the rules differently than what is logical. They can't understand that for the most part we are salaried, with little flight pay. They see us as US based like Cathey and then interpret that we are US residents when over international waters. It's a mess. They believe that we start and stop ALL our trips in the US, thus disallowing the FTE. Not logical, but that is what many are dealing with. All have hired a tax attorney to mitigate the damage.
Reams of paper, including flight plans, charts master card bills, restaurant receipts, FedEx bills etc are being sent to the attorneys. A major stress point for most. Not that simple as, "hey guys I'm a resident and here's my visa to prove it."
When over international waters, we are being treated as if we are crew on a ship. That is, since there is no controlling authority in ship lanes, we retain our status as if in the US. They are unable to understand, that over 95% of the world, there will be a foreign controlling authority over int'l waters.