# foreign income exclusion



## davidjames200 (Jan 1, 2017)

I was using the foreign income exclusion for while and I was using the physical presence section of it, not the bona fide residence part.

But I looked at my return and for some very strange reason my accountant had put down bona fide residence for me. In case if I get audited and they find out I was not eligible for the bona fide residence test, can I still fall into the physical presence test? I was physically present in foreign countries more than 330 days out of the year.


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## Bevdeforges (Nov 16, 2007)

It isn't really that big a deal whether you go for physical presence vs. bona fide resident once you have qualified for the FEIE. The key thing is that as a bona fide resident, you need to have been resident outside the US for an entire calendar year, whereas the physical presence test only requires 330 days outside the US in any period of 12 consecutive months (which can overlap two calendar years).

It's usually only your first (or last) year outside the US where the difference between the two statuses is significant.
Cheers,
Bev


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## BearDown (Sep 20, 2014)

Agree with Bevdeforges. And to add, I have yet to see a notice sent by the IRS to any of our clients regarding substantiation for the test they used to qualify for the FEIE. Even if you do receive something, I wouldn't imagine it would take more than a letter written in response saying that the box was checked by mistake and the PPT section should have been filled out instead.


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## NathalieGold (Apr 29, 2018)

davidjames200 said:


> I was using the foreign income exclusion for while and I was using the physical presence section of it, not the bona fide residence part.
> 
> But I looked at my return and for some very strange reason my accountant had put down bona fide residence for me. In case if I get audited and they find out I was not eligible for the bona fide residence test, can I still fall into the physical presence test? I was physically present in foreign countries more than 330 days out of the year.


Hi DavidJames200, 

I would first notify your accountant of the mistake, they may end up filing an amended return for you choosing the right test for your FEIE. 

If you do get audited, make sure you have good records of when you were abroad (such as flight tickets) so that you can still claim the physical presence test if needed - you get the same FEIE benefit regardless of which test you pass.


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