Which of the following is a false statement?

A. Compensation payments create ordinary income for the recipient employee and deductible compensation expense for the paying employer.

B. Expatriates are U.S. citizens who live and work overseas.

C. U.S. citizens working overseas who take the foreign earned income tax exclusion may also claim the foreign tax credit (FTC) to offset foreign income taxes on the same income.

D. All of the above are correct statements.