Last week the IRS published Revenue Procedure 2019-15, which announced that Democratic Republic of the Congo, Cuba, Iraq, and Nicaragua are the countries for 2018 where it was determined that war, civil unrest, or similar adverse conditions precluded the normal conduct of business for purposes of Code § 911. The effective date for Democratic Republic of the Congo was December 14, 2018, the effective date for Cuba was January 4, 2018, the effective date for Iraq was September 28, 2018, and the effective date for Nicaragua was July 6, 2018.

Code § 911(a) allows a “qualified individual” to exclude foreign earned income and housing cost amounts from gross income, typically referred to as the “foreign earned income exclusion.” Code §911(d)(1) defines the term “qualified individual” as an individual whose tax home is in a foreign country and who is:

(A) a citizen of the United States and establishes to the satisfaction of the Secretary of the Treasury that the individual has been a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire taxable year, or

(B) a citizen or resident of the United States who, during any period of 12 consecutive months, is present in a foreign country or countries during at least 330 full days.

Code § 911(d)(4) provides an exception to the eligibility requirements of Code § 911(d)(1) if the individual left the country during a period for which the Secretary of the Treasury, after consultation with the Secretary of State, determines that individuals were required to leave because of war, civil unrest, or similar adverse conditions that precluded the normal conduct of business.

For purposes of Code § 911, an individual who left Democratic Republic of the Congo, Cuba, Iraq, or Nicaragua on or after the specified dates during 2018 will be treated as a qualified individual with respect to the period during which that individual was present in, or was a bona fide resident of, such foreign country. However, to meet this exception, the individual must also establish that but for those conditions the individual could reasonably have been expected to meet the eligibility requirements.

Today we published a video discussing Form 2555, which is used to claim the foreign earned income exclusion.  In the video, we discuss the general requirements for qualifying for the foreign earned income exclusion and go through the completion of Form 2555 line-by-line.

You can view these videos and many others on our YouTube channel Andrew Mitchel Tax.

This week the I.R.S. published Revenue Procedure 2015-25, which announced that Libya and Yemen are the only 2 countries for 2014 where it was determined that war, civil unrest, or similar adverse conditions precluded the normal conduct of business for purposes of Code § 911.  The effective date for Libya was July 26, 2014, and the effective date for Yemen was September 24, 2014.

Code § 911(a) allows a “qualified individual” to exclude foreign earned income and housing cost amounts from gross income, typically referred to as the “foreign earned income exclusion.”  Code § §911(d)(1) defines the term “qualified individual” as an individual whose tax home is in a foreign country and who is:

(A) a citizen of the United States and establishes to the satisfaction of the Secretary of the Treasury that the individual has been a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire taxable year, or

(B) a citizen or resident of the United States who, during any period of 12 consecutive months, is present in a foreign country or countries during at least 330 full days.

Code § 911(d)(4) provides an exception to the eligibility requirements of Code § 911(d)(1) if the individual left the country during a period for which the Secretary of the Treasury, after consultation with the Secretary of State, determines that individuals were required to leave because of war, civil unrest, or similar adverse conditions that precluded the normal conduct of business.

For purposes of Code § 911, an individual who left Libya or Yemen on or after the specified dates during 2014 will be treated as a qualified individual with respect to the period during which that individual was present in, or was a bona fide resident of, such foreign country.  However, to meet this exception, the individual must also establish that but for those conditions the individual could reasonably have been expected to meet the eligibility requirements.

Revenue Procedure 2013-23 announced that the Central African Republic, Sudan and Tunisia are the only three countries for 2012 where it was determined that war, civil unrest, or similar adverse conditions precluded the normal conduct of business for purposes of Code § 911.  The effective date for the Central African Republic was December 28, 2012, the effective date for Sudan was September 15, 2012, and the effective date for Tunisia was September 15, 2012.

Code § 911(a) allows a “qualified individual” to exclude foreign earned income and housing cost amounts from gross income, typically referred to as the “foreign earned income exclusion.”  Code § §911(d)(1) defines the term “qualified individual” as an individual whose tax home is in a foreign country and who is:

(A) a citizen of the United States and establishes to the satisfaction of the Secretary of the Treasury that the individual has been a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire taxable year, or

(B) a citizen or resident of the United States who, during any period of 12 consecutive months, is present in a foreign country or countries during at least 330 full days.

Code § 911(d)(4) provides an exception to the eligibility requirements of Code § 911(d)(1) if the individual left the country during a period for which the Secretary of the Treasury, after consultation with the Secretary of State, determines that individuals were required to leave because of war, civil unrest, or similar adverse conditions that precluded the normal conduct of business.

For purposes of Code § 911, an individual who left the Central African Republic, Sudan, or Tunisia on or after the specified dates during 2012 will be treated as a qualified individual with respect to the period during which that individual was present in, or was a bona fide resident of, such foreign country.  However, to meet this exception, the individual must also establish that but for those conditions the individual could reasonably have been expected to meet the eligibility requirements.

Revenue Procedure 2011-20 announced that Cote d'Ivoire and Haiti are the only two countries for 2010 where it was determined that war, civil unrest, or similar adverse conditions precluded the normal conduct of business for purposes of Code § 911.  The effective date for Cote d'Ivoire was December 19, 2010 and the effective date for Haiti was January 13, 2010.

Code § 911(a) allows a “qualified individual” to exclude foreign earned income and housing cost amounts from gross income, typically referred to as the “foreign earned income exclusion.”  Code § §911(d)(1) defines the term “qualified individual” as an individual whose tax home is in a foreign country and who is:

(A) a citizen of the United States and establishes to the satisfaction of the Secretary of the Treasury that the individual has been a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire taxable year, or

(B) a citizen or resident of the United States who, during any period of 12 consecutive months, is present in a foreign country or countries during at least 330 full days.

Code § 911(d)(4) provides an exception to the eligibility requirements of Code § 911(d)(1) if the individual left the country during a period for which the Secretary of the Treasury, after consultation with the Secretary of State, determines that individuals were required to leave because of war, civil unrest, or similar adverse conditions that precluded the normal conduct of business.

For purposes of Code § 911, an individual who left Cote d'Ivoire or Haiti on or after the specified dates during 2010 will be treated as a qualified individual with respect to the period during which that individual was present in, or was a bona fide resident of, such foreign country.  However, to meet this exception, the individual must also establish that but for those conditions the individual could reasonably have been expected to meet the eligibility requirements.

Revenue Procedures applying this exception for prior years include:  Rev. Proc. 2004-17, Rev. Proc. 2006-28, and Rev. Proc. 2009-22, Rev. Proc. 2010-17.

Code § 911(a) allows a “qualified individual” to exclude foreign earned income and housing cost amounts from gross income, typically referred to as the “foreign earned income exclusion.”  Code § §911(d)(1) defines the term “qualified individual” as an individual whose tax home is in a foreign country and who is:

(A) a citizen of the United States and establishes to the satisfaction of the Secretary of the Treasury that the individual has been a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire taxable year, or

(B) a citizen or resident of the United States who, during any period of 12 consecutive months, is present in a foreign country or countries during at least 330 full days.

Code § 911(d)(4) provides an exception to the eligibility requirements of Code § 911(d)(1) if the individual left the country during a period for which the Secretary of the Treasury, after consultation with the Secretary of State, determines that individuals were required to leave because of war, civil unrest, or similar adverse conditions that precluded the normal conduct of business.

Today Revenue Procedure 2010-17 announced that Madagascar (after March 18, 2009) and Guinea (after October 1, 2009) are the only two countries for 2009 where it was determined that war, civil unrest, or similar adverse conditions precluded the normal conduct of business.

Accordingly, for purposes of Code § 911, an individual who left Madagascar or Guinea on or after the specified dates during 2009 will be treated as a qualified individual with respect to the period during which that individual was present in, or was a bona fide resident of, such foreign country.  However, to meet this exception, the individual must also establish that but for those conditions the individual could reasonably have been expected to meet the eligibility requirements.

Revenue Procedures applying this exception for prior years include:  Rev. Proc. 2004-17, Rev. Proc. 2006-28, and Rev. Proc. 2009-22.