rp-00-14.pdf

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# Part III

26 CFR 601.105: Examination of returns and claims for refund, credit, or abatement;
determination of correct tax liability. (Also Part I, § 911, 1.911-1)

Rev. Proc. 2000-14

## SECTION 1. PURPOSE

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 1999.

02\. The Internal Revenue Service has previously listed countries for which the
eligibility requirements of § 911(d)(1) of the Code are waived under § 911(d)(4)
because of adverse conditions in those countries on and after the date stated. See
Rev. Proc. 99-20, 1999-14 I.R.B. 7, Rev. Proc. 98-38, 1998-2 C.B. 28, and Rev. Proc.
97-51, 1997-2 C.B. 526. This revenue procedure lists countries added to the list in
1999, for which the eligibility requirements of § 911(d)(1) are waived. Rev. Proc. 99-
20, Rev. Proc. 98-38, and Rev. Proc. 97-51 remain in full force and effect.
SEC. 2. BACKGROUND

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

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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 1999, 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 beginning
on or after the specified dates:

Date of Departure

Country

Eritrea
Ethiopia
Serbia-Montenegro

On or After
February 12, 1999
February 12, 1999
March 20, 1999

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05\. Accordingly, for purposes of § 911 of the Code, an individual who left one of
the foregoing countries on or after the specified departure date 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, such foreign country 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 pursuant to §
911(d)(4)(C). For example, individuals who are first physically present in Eritrea after
February 12, 1999, are not eligible to qualify for the exemption prescribed in §
911(d)(4) of the Code for taxable year 1999.

07\. In order to assist those individuals who are filing prior year or amended tax
returns, the Internal Revenue Service is republishing the countries listed for tax years
1996, 1997 and 1998, for which the eligibility requirements of § 911(d)(1) of the Code
are waived under § 911(d)(4):

Tax Year 1996 -

Date of Departure

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Country

On or After

On or Before

Central African

Republic

May 21, 1996

September 12, 1996

Tax Year 1997 -

Date of Departure

Country

On or After

Albania

March 12,1997

Cambodia

July 9, 1997

Central African Republic

March 28, 1997

Democratic Republic of the Congo

May 3, 1997

Republic of the Congo

June 7, 1997

Sierra Leone

May 28, 1997

Tajikistan

November 26, 1997

Tax Year 1998 -

Date of Departure

Country

On or After

Albania

August 14, 1998

Democratic Republic of the Congo

August 5, 1998

Eritrea

June 5, 1998

Guinea-Bissau

June 10, 1998

Indonesia

May 15, 1998

Pakistan

August 16, 1998

Sierra Leone

December 23, 1998

Serbia-Montenegro

October 11, 1998

## SEC. 3. INQUIRES

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.

### SEC. 4. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 99-20, 1999-14 I.R.B. 7, is supplemented.

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# 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 Ms. Hwa at (202) 622-3840 (not a toll-free call).