rp-01-27.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 1,
' 911, 1.911-1)
Rev. Proc. 2001-27
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
2000.
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. 2000-14, 2000-18
I.R.B. 960, Rev. Proc. 99-20, 1999-1 C.B. 872, and Rev. Proc. 98-38, 1998-2 C.B. 28. This
revenue procedure lists countries added to the list in 2000, for which the eligibility requirements
of
' 911(d)(1) are waived. Rev. Proc. 2000-14, Rev. Proc. 99-20, and Rev. Proc. 98-38 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 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 2000, 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 country beginning on or after
the specified date:
Date of Departure
CountryOn or After
Eritrea May 19, 2000

05. Accordingly, for purposes of ' 911 of the Code, an individual who left the foregoing
country 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 May 19, 2000, are not eligible to qualify for the exemption
prescribed in
' 911(d)(4) of the Code for taxable year 2000.
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 1997, 1998, and
1999, for which the eligibility requirements of
' 911(d)(1) of the Code are waived under
'911(d)(4):
Tax Year 1997 -
Date of Departure
CountryOn or After
AlbaniaMarch 12,1997
CambodiaJuly 9, 1997
Central African RepublicMarch 28, 1997
Democratic Republic of the CongoMay 3, 1997
Republic of the CongoJune 7, 1997
Sierra LeoneMay 28, 1997
TajikistanNovember 26, 1997

Tax Year 1998 -
Date of Departure
Country On or After
AlbaniaAugust 14, 1998
Democratic Republic of the CongoAugust 5, 1998
EritreaJune 5, 1998
Guinea-BissauJune 10, 1998
IndonesiaMay 15, 1998
PakistanAugust 16, 1998
Sierra LeoneDecember 23, 1998
Serbia-MontenegroOctober 11, 1998
Tax Year 1999 -
Date of Departure
CountryOn or After
Eritrea.February 12, 1999
EthiopiaFebruary 12, 1999
Serbia-MontenegroMarch 20, 1999
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.
SEC. 4. EFFECT ON OTHER DOCUMENTS
Rev. Proc. 2000-14, 2000-18 I.R.B. 960, is supplemented.
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).