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Posted by L K Williams on March 19, 2007, 11:11 am
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> Here's a tricky question: once you, a US citizen, establish
> yourself as a foreign bona fide resident (say you've lived
> in a foreign country and met all the requirements, for the
> last 10 years), can you take a vacation in the USA for more
> than 30 days, say 6 weeks? IRS Publication 54 and my
> literal reading of it says "yes". Take a look at example 1
> on page 14.
>
> But the IRS, as is typical of a bureaucracy, tries to stick
> as close to the 30 day rule as they can (which is part of
> the 330 day out of 365 day rule, which is different from the
> bona fide foreign resident rule). As per the example
> above--they literally said 30 days in that example. It
> would have been more helpful if the example was for 45 days.
>
> What do you think? If it's close, just say so. If
> challenged by the IRS I will cite the literal language (I
> plan on taking a 45 day vacation in the US this year, and am
> a bona fide foreign expat from the US).
The 30-day rule does not apply to a taxpayer who qualifies
as a bona fide resident. Each of these rules is separately
stated in the law and the regulations and the bona fide rule
contains no language about the 30-day requirement.
I have been preparing returns for expats for many, many
years. I have always told my clients that qualifying under
the bona fide rules has a number of advantages. One of the
major benefits of claiming bona fide residence is that you
do not have to count your days in the US. It is not unusual
for business people stationed in a foreign country to have
to make multiple trips to their home offices, etc. in the
US. Often, the total number of days will exceed 30 days.
This may reduce the amount of the exclusion that can be
claimed but it does not affect the eligibility for the
exclusion.
I've never heard of IRS challenging a taxpayer on this
issue.
Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans
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