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IRS Lists Countries Where Income Exclusion Requirements Are Waived.

APR. 13, 2000

Rev. Proc. 2000-14; 2000-1 C.B. 960

DATED APR. 13, 2000
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Cross-Reference
    For the full text of Rev. Proc. 99-20, 1999-14 IRB 7, see Doc 1999-

    10837 (5 original pages) or 1999 TNT 54-12.

    Part III

    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
  • Subject Areas/Tax Topics
  • Index Terms
    foreign earned income exclusion
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2000-11001 (5 original pages)
  • Tax Analysts Electronic Citation
    2000 TNT 73-9
Citations: Rev. Proc. 2000-14; 2000-1 C.B. 960

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).

DOCUMENT ATTRIBUTES
  • Institutional Authors
    Internal Revenue Service
  • Cross-Reference
    For the full text of Rev. Proc. 99-20, 1999-14 IRB 7, see Doc 1999-

    10837 (5 original pages) or 1999 TNT 54-12.

    Part III

    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
  • Subject Areas/Tax Topics
  • Index Terms
    foreign earned income exclusion
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2000-11001 (5 original pages)
  • Tax Analysts Electronic Citation
    2000 TNT 73-9
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