IRS Lists Countries Where Income Exclusion Requirements Are Waived.
Rev. Proc. 2000-14; 2000-1 C.B. 960
- Institutional AuthorsInternal Revenue Service
- Cross-ReferenceFor the full text of Rev. Proc. 99-20, 1999-14 IRB 7, see Doc 1999-
- Code Sections
- Subject Areas/Tax Topics
- Index Termsforeign earned income exclusion
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2000-11001 (5 original pages)
- Tax Analysts Electronic Citation2000 TNT 73-9
Supplemented by Rev. Proc. 2001-27
Rev. Proc. 2000-14
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 1999.
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. 99-20, 1999-14 I.R.B. 7, Rev. Proc. 98-38, 1998-2 C.B. 28, and Rev. Proc. 97-51, 1997-2 C.B. 526. This revenue procedure lists countries added to the list in 1999, for which the eligibility requirements of section 911(d)(1) are waived. Rev. Proc. 99-20, Rev. Proc. 98-38, and Rev. Proc. 97-51 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 1999, 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 countries beginning on or after the specified dates:
Date of Departure
Country On or After
Eritrea February 12, 1999
Ethiopia February 12, 1999
Serbia-Montenegro March 20, 1999
05. Accordingly, for purposes of section 911 of the Code, an individual who left one of the foregoing countries 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 February 12, 1999, are not eligible to qualify for the exemption prescribed in section 911(d)(4) of the Code for taxable year 1999.
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 1996, 1997 and 1998, for which the eligibility requirements of section 911(d)(1) of the Code are waived under section 911(d)(4):
Tax Year 1996 -
Date of Departure
Country On or After On or Before
Central African
Republic May 21, 1996 September 12, 1996
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
SECTION 3. INQUIRES
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. 99-20, 1999-14 I.R.B. 7, 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).
- Institutional AuthorsInternal Revenue Service
- Cross-ReferenceFor the full text of Rev. Proc. 99-20, 1999-14 IRB 7, see Doc 1999-
- Code Sections
- Subject Areas/Tax Topics
- Index Termsforeign earned income exclusion
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2000-11001 (5 original pages)
- Tax Analysts Electronic Citation2000 TNT 73-9