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IRS LISTS COUNTRIES SUBJECT TO EARNED INCOME EXCLUSION RESIDENCY EXCEPTION.

MAY 20, 1991

Rev. Proc. 91-29; 1991-1 C.B. 562

DATED MAY 20, 1991
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Areas/Tax Topics
  • Index Terms
    foreign earned income exclusion
  • Jurisdictions
  • Language
    English
  • Tax Analysts Electronic Citation
    91 TNT 110-55
Citations: Rev. Proc. 91-29; 1991-1 C.B. 562

Obsoleted by Rev. Proc. 96-33

Rev. Proc. 91-29

SECTION 1. PURPOSE

01 This revenue procedure provides information to any individual who fails to meet the foreign residency requirements of section 911(d)(1) of the Internal Revenue Code for eligibility for the exclusion from gross income under section 911(a) of foreign earned income and housing cost amounts because adverse conditions in a foreign country precluded the individual from meeting those requirements.

02 Revenue Procedure 90-55, 1990-49 I.R.B. 9, Revenue Procedure 86-39, 1986-2 C.B. 701, and Revenue Procedure 81-23, 1981-1 C.B. 693 previously listed countries for which the foreign residency requirements of section 911(d)(1) of the Code are waived under section 911(d)(4) because of adverse conditions in those countries during the time periods stated. This revenue procedure relists countries where the adverse conditions are still in effect, adds countries where periods of adverse conditions occurred after the publication of the list in Revenue Procedure 90-55, and removes countries where the adverse conditions ended before the publication of Rev. Proc. 90-55. Rev. Proc. 90-55, Rev. Proc. 86-39, and Rev. Proc. 81-23 remain in full force and effect; the older periods listed therein are omitted from this revenue procedure solely for brevity.

SEC. 2. BACKGROUND

01 Section 911(a) of the Code allows foreign earned income and housing cost amounts to be excluded from the gross income of a "qualified individual" as defined in section 911(d)(1).

02 Section 911(d)(1) of the Code 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.

03 Section 911(d)(4) of the Code provides an exception to the residency requirements of section 911(d)(1). An individual who for any period is a bona fide resident of, or is present in, a foreign country, and who leaves that foreign country after August 31, 1978, will be treated as a qualified individual with respect to the period the individual was a bona fide resident of, or was present in, the foreign country if the departure occurred during a period for which the Secretary of the Treasury, after consultation with the Secretary of State, determines that individuals were required to leave the foreign country because of war, civil unrest, or similar adverse conditions in the foreign country that precluded the normal conduct of business by those individuals. An individual must establish that but for those conditions the individual could reasonably have been expected to meet the residency requirements. Further, an individual must have established residency or have been physically present in the foreign country on or prior to the date that the Secretary of Treasury determines that individuals were required to leave the foreign country. Individuals who establish residency or are first physically present in the foreign country after the date that the Secretary prescribes, but during the period for which the Secretary determines that individuals were required to leave the foreign country, shall not be treated as qualified individuals under section 911(d)(4).

04 For purposes of section 911 of the Code, an individual who left one of the following countries during the specified period shall be treated as a qualified individual with respect to the period during which that individual was a bona fide resident of, or present in, that foreign country if the individual establishes a reasonable expectation of meeting the requirements of section 911(d) but for those conditions.

 Country                  On or After               On or before

 

 _______                  ___________               ____________

 

 

 Afghanistan              April 23, 1979            (still in effect)

 

 Bahrain                  January 17, 1991          (still in effect)

 

 Ethiopia                 April 25, 1991            (still in effect)

 

 Iran                     September 1, 1978         (still in effect)

 

 Iraq                     August 3, 1990            (still in effect)

 

 Jordan                   December 26, 1990         (still in effect)

 

 Kuwait                   August 3, 1990            (still in effect)

 

 Lebanon                  August 31, 1979           (still in effect)

 

 Liberia                  June 1, 1990              October 21, 1990

 

 Libya                    August 31, 1979           (still in effect)

 

 Mauritania               January 13, 1991          (still in effect)

 

 Morocco                  January 11, 1991          (still in effect)

 

 Oman                     January 17, 1991          (still in effect)

 

 Pakistan                 January 15, 1991          (still in effect)

 

 Philippines              November 15, 1990         December 14, 1990

 

 Qatar                    January 17, 1991          (still in effect)

 

 Saudi Arabia             January 17, 1991          (still in effect)

 

 Somalia                  December 21, 1990         (still in effect)

 

 Sudan                    December 26, 1990         (still in effect)

 

 Tanzania                 January 25, 1991          (still in effect)

 

 United Arab Emirates     January 17, 1991          (still in effect)

 

 Yemen                    August 20, 1990           (still in effect)

 

 

SEC. 3. INQUIRIES

A taxpayer who needs assistance on how to claim this exclusion, or on how to file an amended return, should contact a local IRS Office or, for a taxpayer residing or traveling outside the United States, the nearest overseas IRS office.

DRAFTING INFORMATION

The principal author of this revenue procedure is Thomas L. Ralph of the Office of Associate Chief Counsel (International). For further information regarding this revenue procedure contact Mr. Ralph on (202) 377-9059 (not a toll-free call).

DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Code Sections
  • Subject Areas/Tax Topics
  • Index Terms
    foreign earned income exclusion
  • Jurisdictions
  • Language
    English
  • Tax Analysts Electronic Citation
    91 TNT 110-55
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