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Tax Announcements IRS Provides Waiver of Eligibility Requirements for Foreign Earned Income, Housing Cost Exclusions for Countries with Adverse Conditions in 2009 The IRS has released a list of countries for which the existence of adverse conditions during specified periods may excuse failure by a taxpayer to meet the foreign presence or residency requirements of Code Sec. 911(d)(1) for tax year 2009. An individual who left one of the countries listed on or after the specified departure date will be treated as a qualified individual for purposes of the foreign earned income and housing cost exclusions if the individual can establish that, but for those adverse conditions, he or she could reasonably have been expected to meet the eligibility requirements. The countries are:
Under Code Sec. 911(a), a qualified individual is allowed to elect to exclude from gross income his or her foreign earned income and housing cost amount. Code Sec. 911(d)(1) defines a "qualified individual" as a U.S. citizen or resident whose tax home is in a foreign country and who meets certain requirements of residence or presence in a foreign country, while Code Sec. 911(d)(4) provides an exception to the eligibility requirements where the individual was a bona fide resident but was forced to leave due to war, civil unrest or other adverse conditions that precluded the normal conduct of business. In such an instance, the taxpayer will be treated as a "qualified individual." Also see: |
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