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Case Study 1: Bona Fide Residence TestCharles is a military spouse who has lived in England since 2008. His mother still lives in the U.S. Charles came to the U.S. for two weeks this year to be with his mother after she had surgery. Charles' trip to the U.S. does not affect his status as a bona fide resident of a foreign country. Click here for an explanation. To meet the bona fide residence test, taxpayers must show that they have set up permanent quarters in a foreign country for an entire, uninterrupted tax year (even though they intend to eventually return to the U.S.). Simply going to another country to work for a year or more is not enough to meet the bona fide residence test. A taxpayer must establish a residence in the foreign country. Taking a brief trip to the U.S. will not prevent the taxpayer from being a bona fide resident, as long as the intention is clear to return to the foreign country. 
Revenue Procedure 2020-27 provides that the Secretary of the Treasury has determined that the global health emergency caused by the outbreak of COVID-19 is an adverse condition that precludes the normal conduct of business globally. Therefore, relief is being provided to any individual who reasonably expected to become a “qualified individual” for purposes of claiming the foreign earned income exclusion under section 911, but left the foreign jurisdiction during the period described in this revenue procedure. 
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