n-17-56.pdf

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Physical Presence of Certain Individuals in the Commonwealth of Puerto Rico or the
United States Virgin Islands Under Section 937(a) Following Hurricane Irma or
Hurricane Maria

Notice 2017-56

# SECTION 1. OVERVIEW

Section 937(a) of the Internal Revenue Code provides that an individual will be
considered a "bona fide resident" of a U.S. territory for certain purposes if the individual
meets a "presence test" and does not have a "tax home" or "closer connection" to a
jurisdiction outside of the U.S. territory. For purposes of the presence test, an individual
is considered to be present in a U.S. territory on any day that the individual is outside
the relevant territory because the individual leaves or is unable to return to the relevant
territory during any 14-day period within which a major disaster occurs in the relevant
U.S. territory for which a Federal Emergency Management Agency ("FEMA") Notice of a
Presidential declaration of a major disaster is issued in the Federal Register. Section
1.937-1(c)(3)(i)(C)(1). In response to the unprecedented and catastrophic damage
caused by Hurricane Irma and Hurricane Maria to the Commonwealth of Puerto Rico
and the United States Virgin Islands (collectively, the "impacted U.S. territories"), FEMA
has issued Notices of a Presidential declaration of a major disaster for the impacted

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U.S. territories with respect to both hurricanes. See FEMA-4335-DR (issued September
7, 2017); FEMA-4336-DR (issued September 10, 2017); FEMA-4339-DR (issued
September 20, 2017); and FEMA-4340-DR (issued September 20, 2017). This Notice
provides relief for individuals who may otherwise lose their status as a "bona fide
resident" of an impacted U.S. territory under section 937(a) as a result of the
unexpected and prolonged dislocation caused by Hurricane Irma and Hurricane Maria,
absent an extension of the 14-day period contained in §1.937-1(c)(3)(i)(C)(1).
SECTION 2. RELIEF UNDER THE PRESENCE TEST

With respect to the impacted U.S. territories, for purposes of §1.937-1(c)(3)(i)(C)(1),
the 14-day period is extended to 117 days, effective beginning September 6, 2017, and
ending December 31, 2017. Further, for this same purpose, an individual who is
outside of an impacted U.S. territory on any day during this 117-day period will be
treated as leaving or being unable to return to the relevant U.S. territory as a result of
Hurricane Irma and Hurricane Maria on such day.

# SECTION 3. DRAFTING INFORMATION

The principal author of this notice is Alan S. Williams of the Office of Associate Chief
Counsel (International). For further information regarding this Notice, contact Mr.
Williams at (202) 317-6941 (not a toll free call).