irv68 --  I sort of figured that was the ultimate outcome.  I was hoping that someone knew of a work-around.   

I want to get this reported correctly -- listing the full pension, then showing it is not taxable (as per relevant treaty).   I don't want to deal with it later if the IRS figures out that this guy is living a lifestyle way above what his assets and reported income would otherwise suggest.  I know it would all work out in the end, just a headache to deal with IRS letters.

Thanks for your response.