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Rev. Proc. 2019-15: List of countries eligible for section 911(d)(1) waiver for 2018

List of countries eligible for section 911(d)(1) waiver

The IRS today released an advance version of Rev. Proc. 2019-15 that provides a waiver for the time requirements of Code section 911 for individuals electing to exclude their foreign earned income who must leave a foreign country because of war, civil unrest, or similar adverse conditions in that country.

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Rev. Proc. 2019-15 [PDF 19 KB] adds the following countries to the list of waiver countries for tax year 2018 for which the minimum time requirements are waived:

  • Democratic Republic of the Congo, for departures on or after December 14, 2018
  • Cuba, for departures on or after January 4, 2018
  • Iraq, for departures on or after September 28, 2018
  • Nicaragua, for departures on or after July 6, 2018

Background

The IRS traditionally has issued revenue procedures as guidance for individuals who failed to meet the eligibility requirements of either the bona fide residence test or the physical presence test under section 911(d)(1)—and thus may not exclude foreign earned income and housing cost amounts from gross income—because war, civil unrest or similar adverse conditions in a foreign country have precluded the individuals from satisfying these requirements for the tax year. These revenue procedures, generally issued annually, list the countries for which the time requirements are waived in the prior year. If a taxpayer leaves a listed country on or after the provided date, he or she will be considered to have met the time requirements of the bona fide residence test or the physical present test, meaning that his or her early departure will not prevent him or her from claiming the benefit of the "foreign earned income exclusion."

Rev. Proc. 2019-15 states that previously issued revenue procedures under section 911(d)(4) remain in full force and effect. However, Rev. Proc. 2018-23 is supplemented. Read TaxNewsFlash for more information.

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