Exchange 2013 will not send out email using MX records, but will via smart host.

When I use a smart host my email goes out fine, but when I use MX look-up it does not.  
Inbound mail works when I use Telnet to test it. 
Could this be because I'm testing the server from our office that the FQDN on the Exchange Server will not resolve back to the IP address I'm testing from? 

Yes almost certainly.
If when the server does the MX lookup for the destination address it resolves to your external IP address then it's quite likely that it won't be able to send. A lot of firewalls can't handle having a connection made from the internal network for an external
IP address that it controls, and won't simply pass the connection back to the internal network. When using the smart host though, the destination is external so the message can reach it and then when the smart host tries to deliver the message to your external
IP it's coming from an external source so it works.
Tricky one to explain but I hope that makes sense.

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