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IRS ADDS TO LIST OF COUNTRIES WHERE RESIDENCY REQUIREMENTS WILL BE WAIVED.


Rev. Proc. 90-55; 1990-2 C.B. 638

DATED
DOCUMENT ATTRIBUTES
  • Cross-Reference
    26 CFR 601.105: Examination of returns and claims for refund, credit,

    or abatement; determination of correct tax liability.

    (Also Part I, Section 911; 1.911-1.)
  • Code Sections
  • Index Terms
    foreign earned income exclusion
    foreign housing cost exclusion
  • Language
    English
  • Tax Analysts Document Number
    Doc 90-8152
  • Tax Analysts Electronic Citation
    90 TNT 238-9
Citations: Rev. Proc. 90-55; 1990-2 C.B. 638

Obsoleted by Rev. Proc. 95-45

Rev. Proc. 90-55

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 Rev. Proc. 86-39, 1986-2 C.B. 701, which supplements Rev. Proc. 81-23, 1981-1 C.B. 693, lists 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 86-39, and removes countries where the adverse conditions ended before the publication of Rev. Proc. 86-39. 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, because they now apply to few open year returns.

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)

 

      Burma               September 9, 1988   October 24, 1988

 

      China               June 7, 1989        August 9, 1989

 

      Colombia            November 13, 1984   April 25, 1988

 

                          August 29, 1989     November 22, 1989

 

      El Salvador         September 24, 1979  July 31, 1988

 

      Haiti               April 30, 1987      February 26, 1988

 

      Iran                September 1, 1978   (still in effect)

 

      Iraq                August 31, 1979     January 1, 1987

 

                          August 3, 1990      (still in effect)

 

      Kuwait              August 3, 1990      (still in effect)

 

      Lebanon             August 31, 1979     (still in effect)

 

      Liberia             June 1, 1990        (still in effect)

 

      Libya               August 31, 1979     (still in effect)

 

      Panama              May 12, 1989        November 6, 1989

 

      Peru                July 3, 1986        April 2, 1988

 

      Sudan               October 17, 1985    November 26, 1986

 

      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 Assistant Chief Counsel (International). For further information regarding this revenue procedure contact Mr. Ralph on (202) 377-9059 (not a toll-free call).

DOCUMENT ATTRIBUTES
  • Cross-Reference
    26 CFR 601.105: Examination of returns and claims for refund, credit,

    or abatement; determination of correct tax liability.

    (Also Part I, Section 911; 1.911-1.)
  • Code Sections
  • Index Terms
    foreign earned income exclusion
    foreign housing cost exclusion
  • Language
    English
  • Tax Analysts Document Number
    Doc 90-8152
  • Tax Analysts Electronic Citation
    90 TNT 238-9
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