Overview of IRS § 911 Waivers in 2026
Revenue Procedure 2026-16 updates the list of countries for which individuals can have waived time requirements under section 911, meaning those who must leave countries due to war, civil unrest or adverse conditions may still qualify for the foreign earned income exclusion (FEIE), even if they do not meet the usual bona fide residence or physical presence tests.(irs.gov) Countries added include Haiti, Ukraine, Democratic Republic of the Congo, South Sudan, Iraq, Lebanon, and Mali (for tax year 2025).(irs.gov)
Relevance for Digital Nomads & Displaced Residents
Digital nomads often rely on FEIE to exclude foreign income (up to $130,000 for tax year 2025). If urgent circumstances force departure from a country in the waiver list, this policy protects their eligibility. Without the waiver, displacement could disqualify them from benefit under § 911.(irs.gov)
Actionable Steps
1. Determine If You Qualify for the Waiver
- Were you living in one of the listed countries during 2025?
- Did you have to leave due to war, civil conflict, or similar circumstances? If yes to both, you may apply for the waiver under Revenue Procedure 2026-16. Keep documentation of travel, residency, or evacuation orders, if applicable.
2. Meet Other Requirements for FEIE
Even with a waiver, you must satisfy all other eligibility criteria:
- Tax home must be in a foreign country
- Earned income must be from foreign sources
- Do not also take deductions disallowed under § 911(d)(1)
3. Prepare Returns Properly
- For those affected in 2025, file Form 2555, electing FEIE and referencing Revenue Procedure 2026-16.
- Include a statement explaining reason for leaving the waiver-country (war/unrest), dates, and supporting evidence.
Example Scenario
A nomad living in Ukraine until October 1, 2025, had to leave due to conflict. Normally fails physical presence test; but with the waiver, they may still claim FEIE, exclude earned foreign income up to $130,000, reducing U.S. taxable income significantly.
Common Pitfalls & Compliance Notes
- The waiver countries list is only for tax year 2025; future years require separate guidance.
- Must retain documentation of residence and cause of departure.
- FEIE does not exclude foreign self-employment or travel related deductions unless the rules specify.
Conclusion
This recent U.S. IRS update empowers certain expatriates and nomads residing in dangerous or unstable places to retain access to foreign income exclusion even if time tests aren’t met. If you're affected, act now: collect your proof, check eligibility, file correctly. The tax savings can be substantial when navigating global moves and emergencies.