# FEIE and COVID



## Snatchmo (Jan 12, 2021)

I'm an American living in the UK. I've been here for just over two years. I know that one must be outside the US for 330 days to qualify for FEIE. I'm fully aware of this, but my issue is this....

I went stateside in late October because I had a death in the family. I was only supposed to be there for about three weeks. However, while there, I contracted COVID, which forced me to stay an extra two weeks. As a result, this pushed me over the allowable limit I was allowed in the US by 3-4 days. 

Given that it was late October, I don't think filing for an extension in order to get everything to line up helps me since I can only extend to October 15th and I left for the US on October 25th.

So, my question is, when doing tax paperwork and claiming the days one was in the US, does the IRS confirm this data through passport scans? Hypothetically, what is likely to happen if one were to fudge the dates a bit to ensure he was under the allowable limit on his tax paperwork?

I'm not saying one_ should_ do this or that I _would_ do this, but that doesn't make me any less curious.


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## 255 (Sep 8, 2018)

Snatchmo -- What would likely happen if you cheated and signed a fraudulent tax return, nothing, unless you are caught. Just beware of the IRS Whistle Blower Program: Whistleblower - Informant Award | Internal Revenue Service (irs.gov) Believe it or not there, are professional Whistle Blowers! I would not personally (knowingly) submit a fraudulent tax return -- but I am sure others would have no qualms.

Fortunately, there are two tests to qualify for the FEIE. The first, that you are referencing, the "Physical Presence Test'" is routinely used for your first year overseas (and indeed can be used for every year.) Foreign Earned Income Exclusion - Physical Presence Test | Internal Revenue Service (irs.gov) 

The second is the "Bona Fide Residence Test," which is most often used for subsequent years: Foreign Earned Income Exclusion - Bona Fide Residence Test | Internal Revenue Service (irs.gov) It gives a little more flexibility regarding time spent in the U.S. Good luck. Cheers, 255


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## Moulard (Feb 3, 2017)

As 255 has pointed out so long as your tax home is the UK, and you have lived in the UK for a full calendar year then you can likely claim eligibility for the bona fide residence test. 

But, there are also treasury regulations (Revenue Procedure 2020-27) that waive some of the eligibility requirements in light of COVID.

Per that regulation, if you left the UK on or after February 1, 2020, but on or before July 15, 2020; you will be treated as having met the physical presence or bona fide residence test if you could establish a reasonable expectation that you would have met either test if it had not been for the COVID-19 emergency. 

So... in short, 

If you meet the requirements of the Bona Fide Residents test use that - the 330 day rule does not apply
If you do not meed the requirements of the Bona Fide Residents Test, use the Physical Presence Test and write "Revenue Procedure 2020-27" at the top of Form 2555 to request a waiver for those extra days


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## Snatchmo (Jan 12, 2021)

I definitely do not meet bonafide residence, so I have to go with physical presence test. 

The COVID waiver also does not apply to me because I was in the US for about 5 weeks starting in October (well after the July 15 cutoff).


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## Bevdeforges (Nov 16, 2007)

I have, in fact, filed a tax return using the FEIE when I wound up spending 5 weeks in the US (due to a death in the family while I was visiting in the US). It didn't seem to cause any problems at the time.

As long as you aren't dealing with a huge amount of income and your return is relatively "clean" (i.e. no obvious attempt to fiddle the numbers) I would just go ahead and file it. I don't see why you say you don't qualify as a bona fide resident - the only "hard" requirement for that one is that you have been resident for an entire calendar year outside the US. The rest of the requirements are pretty subjective. But under the bona fide residence test, there is no 330 day requirement.


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## Snatchmo (Jan 12, 2021)

I'm currently on a work contract (and work visa) that has a finite end. While it's possible it gets extended/renewed, it's also possible that it does not. As it currently stands, I'm only "guaranteed" to be in the UK until the very end of 2021, at which point I would return to the US.

One of the requirements for bona fide residence is...

You must not have any plans of moving away from your country of residence and returning to the US.
Several of the examples I have read specifically cited my situation as being a blocker for bona fide residence.


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## Moulard (Feb 3, 2017)

I first responded, figuring the bona fide test might be the easier, but if you feel you are not eligible for that then FEIE rules still allow you to file under the physical presence test.

Technically, you can file a timely return as late as 15 Dec. but it does require slightly more effort.

If you will be in the UK until the end of 2021 at the earliest, then for your 2020 return you can definitely use the period from early Nov 2020 to early Nov 2021 as your 12 consecutive months.

Actually you could bring the start day forward by 30-ish days and still meet the 330 day part of it, but really so long as you file the day after you tick over a carefully selected to meet the 330 days in 12 consecutive months.

Paraphrasing Phil Hogden... to be able to file as late as 15 December you need to:

On or before June 15, file Form 4868.
On or before June 15, pay whatever tax you have to pay for the tax year along with that Form 4868 you are filing.
On or before October 15, 2018, write a letter and mail it to the IRS 
File your Form 1040 on or before December 15






File an Income Tax Return Extension to December 15, 2018


If you are an American living abroad, you may be able to qualify for a further extension of time for filing your tax return — to December 15, 2018. Discover more!




hodgen.com


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