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IRS Lists Countries Where Income Exclusion Requirements Are Waived.

APR. 19, 2001

Rev. Proc. 2001-27; 2001-1 C.B. 1155

DATED APR. 19, 2001
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Cross-Reference
    For the text of Rev. Proc. 2000-14, 2000-18 IRB 960, see Doc 2000-

    11001 (5 original pages) or 2000 TNT 73-9.

    Part III

    26 CFR 601.105: Examination of returns and claims for refund, credit,

    or abatement; determination of correct tax liability. (Also Part 1,

    section 911)
  • Code Sections
  • Subject Areas/Tax Topics
  • Index Terms
    foreign earned income exclusion
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2001-11213 (4 original pages)
  • Tax Analysts Electronic Citation
    2001 TNT 77-10
Citations: Rev. Proc. 2001-27; 2001-1 C.B. 1155

Suplemented by Rev. Proc. 2002-20

Rev. Proc. 2001-27

SECTION 1. PURPOSE

01. This revenue procedure provides information to any individual who failed to meet the eligibility requirements of section 911(d)(1) of the Internal Revenue Code because adverse conditions in a foreign country precluded the individual from meeting those requirements for taxable year 2000.

02. The Internal Revenue Service has previously listed countries for which the eligibility requirements of section 911(d)(1) of the Code are waived under section 911(d)(4) because of adverse conditions in those countries on and after the date stated. See Rev. Proc. 2000-14, 2000-18 I.R.B. 960, Rev. Proc. 99-20, 1999-1 C.B. 872, and Rev. Proc. 98-38, 1998-2 C.B. 28. This revenue procedure lists countries added to the list in 2000, for which the eligibility requirements of section 911(d)(1) are waived. Rev. Proc. 2000-14, Rev. Proc. 99-20, and Rev. Proc. 98-38 remain in full force and effect.

SECTION 2. BACKGROUND

01. Section 911(a) of the Code allows a "qualified individual," as defined in section 911(d)(1), to exclude foreign earned income and housing cost amounts from gross income. Section 911(c)(3) of the Code allows a qualified individual to deduct housing cost amounts from gross income.

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 eligibility requirements of section 911(d)(1). An individual will be treated as a qualified individual with respect to a period in which the individual was a bona fide resident of, or was present in, a foreign country 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. An individual must establish that but for those conditions the individual could reasonably have been expected to meet the eligibility requirements.

04. For 2000, the Secretary of the Treasury in consultation with the Secretary of State, has determined that war, civil unrest, or similar adverse conditions that precluded the normal conduct of business existed in the following country beginning on or after the specified date:

                                           Date of Departure

 

      Country                                 On or After

 

      _______                                 ___________

 

 

      Eritrea                                 May 19, 2000

 

 

05. Accordingly, for purposes of section 911 of the Code, an individual who left the foregoing country on or after the specified departure date shall 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 if the individual establishes a reasonable expectation of meeting the requirements of section 911(d) but for those conditions.

06. To qualify for relief under section 911(d)(4) of the Code, 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 the 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, shall not be treated as qualified individuals under section 911(d)(4) of the Code pursuant to section 911(d)(4)(C). For example, individuals who are first physically present in Eritrea after May 19, 2000, are not eligible to qualify for the exemption prescribed in section 911(d)(4) of the Code for taxable year 2000.

07. In order to assist those individuals who are filing prior year or amended tax returns, the Internal Revenue Service is republishing the countries listed for tax years 1997, 1998, and 1999, for which the eligibility requirements of section 911(d)(1) of the Code are waived under section 911(d)(4):

      Tax Year 1997 --

 

 

                                         Date of Departure

 

      Country                               On or After

 

      _______                            _________________

 

 

      Albania                             March 12, 1997

 

      Cambodia                            July 9, 1997

 

      Central African Republic            March 28, 1997

 

      Democratic Republic of the Congo    May 3, 1997

 

      Republic of the Congo               June 7, 1997

 

      Sierra Leone                        May 28, 1997

 

      Tajikistan                          November 26, 1997

 

 

      Tax Year 1998 --

 

 

                                         Date of Departure

 

      Country                               On or After

 

      _______                            _________________

 

 

      Albania                             August 14, 1998

 

      Democratic Republic of the Congo    August 5, 1998

 

      Eritrea                             June 5, 1998

 

      Guinea-Bissau                       June 10, 1998

 

      Indonesia                           May 15, 1998

 

      Pakistan                            August 16, 1998

 

      Sierra Leone                        December 23, 1998

 

      Serbia-Montenegro                   October 11, 1998

 

 

      Tax Year 1999 --

 

 

                                         Date of Departure

 

      Country                               On or After

 

      _______                            _________________

 

 

      Eritrea                             February 12, 1999

 

      Ethiopia                            February 12, 1999

 

      Serbia-Montenegro                   March 20, 1999

 

 

SECTION 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.

SECTION 4. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 2000-14, 2000-18 I.R.B. 960, is supplemented.

DRAFTING INFORMATION

The principal author of this revenue procedure is Kate Y. Hwa of the Office of Associate Chief Counsel (International). For further information regarding this revenue procedure contact Ms. Hwa at (202) 622-3840 (not a toll-free call).

DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Cross-Reference
    For the text of Rev. Proc. 2000-14, 2000-18 IRB 960, see Doc 2000-

    11001 (5 original pages) or 2000 TNT 73-9.

    Part III

    26 CFR 601.105: Examination of returns and claims for refund, credit,

    or abatement; determination of correct tax liability. (Also Part 1,

    section 911)
  • Code Sections
  • Subject Areas/Tax Topics
  • Index Terms
    foreign earned income exclusion
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2001-11213 (4 original pages)
  • Tax Analysts Electronic Citation
    2001 TNT 77-10
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