26 CFR 1.911-2: Qualified Individuals (Also: Part I, §§911; 1.911-2.)

Part III

Administrative, Procedural, and Miscellaneous

26 CFR 1.911-2: Qualified Individuals

(Also: Part I, §§911; 1.911-2.)

Rev. Proc. 2019-15

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.

.02 The Internal Revenue Service previously has 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. See Rev. Proc. 2018-23,

2018-17, I.R.B. 516.

SECTION 2. BACKGROUND

.01 Section 911(a) of the Code allows a "qualified individual," as defined in

section 911(d)(1), to exclude from gross income the individual's foreign earned income

and the housing cost amount.

.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)

de 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.

SECTION 3. APPLICATION

.01 For 2018, the Secretary of the Treasury, in consultation with the Secretary of

State, has determined that war, civil unrest, or similar adverse conditions precluded the

normal conduct of business in the following countries beginning on the specified date:

Country

Date of Departure On or After

Congo, Democratic Republic of the

December 14, 2018

Cuba

January 4, 2018

Iraq

September 28, 2018

Nicaragua

July 6, 2018

For example, for purposes of section 911 of the Code, an individual who left the

Democratic Republic of Congo on or after December 14, 2018, will 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, the Democratic Republic of Congo if the individual

establishes a reasonable expectation that he or she would have met the requirements

of section 911(d) but for those conditions

ho left the

Democratic Republic of Congo on or after December 14, 2018, will 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, the Democratic Republic of Congo if the individual

establishes a reasonable expectation that he or she would have met the requirements

of section 911(d) but for those conditions.

.02 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 before the date that the Secretary of the Treasury determines that individuals were

required to leave the foreign country. For example, individuals who were first physically

present or established residency in the Democratic Republic of Congo after December

14, 2018, are not eligible to qualify for the exception provided in section 911(d)(4) of the

Code for taxable year 2018.

SECTION 4. EFFECT ON OTHER DOCUMENTS

Previously issued revenue procedures under section 911(d)(4) remain in full

force and effect. However, Rev. Proc. 2018-23, 2018-17, I.R.B. 516, is supplemented.

SECTION 5. INQUIRIES

A taxpayer who needs assistance on how to claim this exclusion, or on how to

file an amended return, should consult the section under the heading Foreign Earned

Income Exclusion at https://www.irs.gov/individuals/international-taxpayers/us-citizens-

and-resident-aliens-abroad; consult the section under the heading How to Get Tax

Help at the same web address; or contact a local IRS office.

SECTION 6. 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 Kate Y. Hwa at (202) 317-5001 (not a toll free call).