.01 This revenue procedure provides information to any individual who
failed to meet the eligibility requirements of § 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 2005.
.02 This revenue procedure lists the country, for which the eligibility
requirements of § 911(d)(1) are waived for taxable year 2005.
.01 Section 911(a) of the Code allows a “qualified individual,”
as defined in § 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 § 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 2005, 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 country
beginning on the specified date:
||Date of Departure On or after
||May 26, 2005
.05 Accordingly, for purposes of § 911 of the Code, an individual
who left Haiti on or after May 26, 2005, 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, Haiti, if the individual
establishes a reasonable expectation of meeting the requirements of § 911(d)
but for those conditions.
.06 To qualify for relief under § 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 § 911(d)(4) of the Code. Therefore, individuals
who are first physically present or establish residency in Haiti after May
26, 2005, are not eligible to qualify for the exception provided in § 911(d)(4)
of the Code for taxable year 2005.
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
SECTION 4. 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) 622-3840 (not
a toll-free call).
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