The IRS today released an advanced copy of Rev. Proc. 2015-25 concerning 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 precluded the individuals from satisfying these requirements for the 2014 tax year.
Rev. Proc. 2015-25 [PDF 14 KB] lists Libya and Yemen as countries for which the eligibility requirements of section 911(d)(1) are waived for tax year 2014.
Accordingly, an individual who left—
will be treated as a “qualified individual” for purposes of section 911 with respect to the period during which that person was present in, or was a bona fide resident of the respective country if the individual establishes a reasonable expectation of meeting the requirements of section 911(d) but for the adverse conditions.
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