COUNTRIES THAT QUALIFY FOR EARNED INCOME EXCLUSION RESIDENCY EXCEPTION LISTED.

Rev. Proc. 92-63

SECTION 1. PURPOSE

01 This revenue procedure provides information to any individual who fails 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 has previously listed countries for which the eligibility requirements of section 911(d)(l) of the Code are waived under section 911(d)(4) because of adverse conditions in those countries during the time periods stated. See Rev. Proc. 91- 29, 1991-1 C.B. 562, Rev. Proc. 90-55, 1990-2 C.B. 638, Rev. Proc. 86-39, 1986-2 C.B. 701, and Rev. Proc. 81-23, 1981-1 C.B. 693. This revenue procedure relists countries where the adverse conditions are still in effect, adds countries where periods of adverse conditions occurred after the publication of the list in Rev. Proc. 91-29, and removes countries where the adverse conditions ended after the publication of Rev. Proc. 91-29. Rev. Proc. 91-29, Rev. Proc. 90-55, Rev. Proc. 86-39, and Rev. Proc. 81-23 remain in full force and effect; the older periods listed therein are omitted from this revenue procedure solely for brevity.

SEC. 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) 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. Further, 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, but during the period for which the Secretary determines that individuals were required to leave the foreign country, shall not be treated as qualified individuals under section 911(d)(4) pursuant to section 911(d)(4)(C).

04 For purposes of section 911(d)(4) of the Code, 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 during the specified periods:

 Country                 On or After              On or before

SEC. 3. INQUIRIES

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.

DRAFTING INFORMATION

The principal author of this revenue procedure is E. Leslie Berkowitz of the Office of Associate Chief Counsel (International). For further information regarding this revenue procedure contact Ms. Berkowitz on (202) 622-3850 (not a toll-free call).