IRS Waives FEIE Time Requirements for Expats in 7 Countries

If you were forced to leave a foreign country in 2025 because of war, civil unrest, or dangerous conditions, you may still qualify for the Foreign Earned Income Exclusion (FEIE) even if you did not meet the usual time requirements. In Revenue Procedure 2026-16, the IRS announced that it will waive the physical presence and bona fide residence time requirements for Americans who departed from seven countries during 2025 due to adverse conditions.

The waiver covers:

Haiti (on or after January 1, 2025)
Ukraine (on or after January 1, 2025)
Democratic Republic of the Congo (on or after January 28, 2025)
South Sudan (on or after March 7, 2025)
Iraq (on or after June 11, 2025)
Lebanon (on or after June 22, 2025)
Mali (on or after October 30, 2025)

Here is what this means for your 2025 tax return and how to claim the relief.

Think You May Qualify for the FEIE Waiver?

Greenback’s CPAs and Enrolled Agents review your travel dates, residency status, and income to determine whether you qualify for the IRS time requirement waiver.

What Does This Waiver Do?

Normally, to claim the FEIE and exclude up to $130,000 of foreign earned income from U.S. taxes for the 2025 tax year, you must meet one of two time-based tests:

Bona Fide Residence Test: You must be a bona fide resident of a foreign country for an uninterrupted period that includes an entire tax year.
Physical Presence Test: You must be physically present in a foreign country for at least 330 full days during any 12-month period.

When war, civil unrest, or similar dangerous conditions force you to leave a country early, you may fall short of these requirements through no fault of your own. Section 911(d)(4) of the Internal Revenue Code gives the IRS authority to waive the time requirements in these situations, so affected taxpayers do not lose their tax benefits on top of everything else they have been through.

Revenue Procedure 2026-16 is the IRS’s formal determination, made after consultation with the State Department, that conditions in these seven countries during 2025 required people to leave and disrupted the normal conduct of business.

Which Countries and Dates Are Covered?

The IRS designated the following countries and start dates for 2025. You qualify for the waiver if you were already living in or physically present in the country on or before the listed date and then departed because of the adverse conditions:

Country	Adverse Conditions Start Date	Primary Conditions
Haiti	January 1, 2025	Ongoing gang violence, political instability
Ukraine	January 1, 2025	Continuing armed conflict
Democratic Republic of the Congo	January 28, 2025	Armed conflict, humanitarian crisis
South Sudan	March 7, 2025	Civil unrest, political instability
Iraq	June 11, 2025	Security concerns, civil unrest
Lebanon	June 22, 2025	Armed conflict, regional instability
Mali	October 30, 2025	Armed conflict, political instability

Important timing rule: You must have established residency or been physically present in the affected country on or before the designated start date. If you first arrived in the country after that date, you do not qualify for this waiver for the 2025 tax year.

Example: An American teacher who had been living and working in Lebanon since 2023 and departed on July 15, 2025, due to the escalating conflict would qualify for the waiver. She would be treated as a qualified individual for the period she was present in Lebanon, even though she did not complete a full tax year or meet the 330-day physical presence requirement. She can still claim the FEIE on her 2025 return for the income she earned during her time in Lebanon.

Example where the waiver does not apply: A contractor who first arrived in Iraq on August 1, 2025 (after the June 11 start date) and departed in November 2025 would not qualify for this waiver, because he was not present in Iraq on or before the designated date.

How Does This Affect My 2025 Tax Return?

If you qualify for the waiver, the IRS treats you as though you met the time requirements for the period you were actually present in the affected country. This means:

You can still claim the FEIE: Your foreign-earned income from the period you were in the affected country remains eligible for exclusion, up to the $130,000 maximum for 2025 (prorated for the days you were in the affected country).
You can still claim the Foreign Housing Exclusion: If you had qualifying housing expenses while living in the affected country, those expenses remain eligible for the housing exclusion.
You must still prove you would have qualified: The waiver is not automatic. You must demonstrate that, if not for the adverse conditions, you could reasonably have been expected to meet the bona fide residence or physical presence requirements. In practice, this means you need to show you had an established life, employment, or business arrangement in the country that would have continued.
You still file Form 2555: To claim the FEIE, attach Form 2555 to your Form 1040. In Part I of Form 2555, you will indicate that you are claiming the section 911(d)(4) waiver and provide the relevant country and dates.

What If I Already Filed My 2025 Return Without the FEIE?

If you already filed your 2025 tax return and did not claim the FEIE because you thought you did not meet the time requirements, you can file an amended return using Form 1040-X to claim the exclusion retroactively. You generally have three years from the date you filed your original return to amend and claim a refund.

Given that this revenue procedure will be issued on March 23, 2026, some affected taxpayers may have already filed their 2025 returns. If that includes you, amending is the right path to recover taxes you should not have owed.

What About the Foreign Tax Credit?

If you were paying taxes to the government of one of the affected countries, you may also be able to claim the Foreign Tax Credit for taxes paid during the period you were present. The FEIE waiver and the FTC address different issues: the waiver preserves your ability to exclude income, while the FTC gives you a dollar-for-dollar credit for foreign taxes paid. In some cases, the FTC may save you more than the FEIE, depending on the tax rates in the country you left. An expat tax professional can help you determine which approach is better for your specific situation.

What Documentation Should I Keep?

The IRS requires you to establish that you would have met the time requirements if not for the adverse conditions. Keep records that support your case:

Employment contract, assignment letter, or business registration in the affected country
Lease or housing agreement showing your residence
Travel records showing your date of arrival and departure
Communication from your employer, embassy, or other authority regarding the evacuation or departure
News reports or State Department advisories regarding the conditions in the country
Any other evidence of your established life in the country (utility bills, bank statements, school enrollment for children)

Key Details at a Glance

Detail	What You Need to Know
Revenue Procedure	Rev. Proc. 2026-16
Published in	Internal Revenue Bulletin 2026-13 (March 23, 2026)
Tax year covered	2025
FEIE exclusion amount	Up to $130,000
Number of countries	7 (Haiti, Ukraine, DRC, South Sudan, Iraq, Lebanon, Mali)
Form to file	Form 2555 with Form 1040
Must prove	You would have met the time requirements but for the adverse conditions
Must have been present	On or before the designated start date for each country
Deadline for amended returns	Generally, 3 years from the date you filed the original return

What This Means for Expats in Conflict Zones

The IRS issues this type of guidance annually to protect Americans who are displaced by events beyond their control. If you were working abroad in one of these countries and had to evacuate, the tax system is designed to avoid penalizing you further. The key is to claim the relief properly and document your situation.

For Americans living in other conflict-affected areas not on this list, the waiver does not apply. However, you may still qualify for the FEIE through the standard physical presence test if you meet the 330-day requirement across all foreign countries combined, not just the one you left.

Get Help Filing Your 2025 Return

If you were affected by conditions in any of the seven listed countries, or if you are unsure whether you qualify for the section 911(d)(4) waiver, an expat tax professional can review your situation and make sure you claim every benefit available to you.

No matter how late, messy, or complex your return may be, we can help. If you are ready to be matched with a Greenback accountant, get started here. For general questions about your situation or working with Greenback, contact our Customer Champions.

Claim the FEIE Waiver Correctly

Greenback’s expat tax specialists apply the IRS waiver rules, prepare your return, and ensure your Foreign Earned Income Exclusion is fully supported.

This article is for informational purposes only and does not constitute tax, legal, or financial advice. Tax laws are complex and subject to change. Always consult with a qualified tax professional regarding your specific situation.