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been in a foreign country during the year at issue. Sec.
911(d)(1). Second, the taxpayer must have either been a bona fide
resident of a foreign country for an uninterrupted period which
includes an entire taxable year (the “bona fide residence” test)
or the taxpayer must have been physically present in a foreign
country for 330 days during a consecutive 12-month period (the
“physical presence” test).27 Sec. 911(d)(1)(A) and (B); sec.
1.911-2(c) and (d), Income Tax Regs.
With respect to the first requirement, section 911(d)(3)
provides that a taxpayer’s “tax home” is his home for purposes of
section 162(a)(2) (relating to traveling expenses while away from
home). Generally, a taxpayer’s “tax home” for purposes of section
162(a)(2) is the taxpayer’s principal place of business.
Harrington v. Commissioner, supra at 307; Mitchell v.
Commissioner, 74 T.C. 578, 581 (1980); sec. 1.911-2(b), Income Tax
Regs.
The general rule of section 911(d)(1) is subject to an
exception under section 911(d)(3) which provides that “An
26(...continued)
(B) a citizen or resident of the United
States and who, during any period of 12
consecutive months, is present in a foreign
country or countries during at least 330 full days
in such period.
27 Neither party argued the physical presence test applied
to this case.
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Last modified: March 27, 2008