The Internal Revenue Service is offering tax relief to U.S. citizens and resident aliens living or working in war-torn South Sudan.

The IRS issued Announcement 2014-28 last week, which provides guidance to U.S. citizens or resident aliens living and working abroad whose tax home is in a foreign country and meet either the bona fide residence test or the physical presence test, choosing to exclude from their income a limited amount of their foreign earned income ($99,200 for 2014). 

Both the bona fide residence test and the physical presence test contain minimum time requirements.  The minimum time requirements can be waived, however, for those who must leave a foreign country because of war, civil unrest, or similar adverse conditions in that country. South Sudan has been in a state of upheaval since winning independence from Sudan in 2011.

Revenue Procedure 2014-25 contains the list of countries for tax year 2013 for which the minimum time requirements are waived.  However, the IRS noted that list is incomplete, and South Sudan and its departure date have been added. The departure date is Dec. 17, 2013.

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