IRS updates countries eligible for waiver of residency rules

The IRS has updated the list of countries for which the existence of adverse conditions during specified periods may excuse failure by a taxpayer to meet the foreign presence or residency requirements of Code Sec. 911(d)(1) for tax year 2013. An individual who left one of the countries listed on or after the specified departure date will be treated as a qualified individual for purposes of the foreign earned income and housing cost exclusions if the individual can establish that, but for those adverse conditions, he or she could reasonably have been expected to meet the eligibility requirements. The following country was added to the list which is reproduced in the Payroll Management Guide at ¶904.

South Sudan, for departures on or after December 17, 2013 (IRS Ann. 2014-28, IRB 2014-34, July 30, 2014; Rev. Proc. 2014-25, IRB 2014-15, April 7, 2014.)

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