Taxpayer may reelect the foreign earned income exclusion early

Plain-English summary

A U.S. citizen working abroad had elected the foreign earned income exclusion and later revoked it. The taxpayer then moved to another foreign country with a different tax rate and began working for a new employer. Because the taxpayer wanted to reelect the exclusion within five years of the revocation, IRC § 911 and its regulations required IRS permission. The IRS considered the country move and employer change and allowed the taxpayer to reelect the exclusion for the requested year. It did not decide whether the taxpayer otherwise met the substantive requirements for excluding foreign earned income.

Ruling snapshot

• Question: May a taxpayer reelect the foreign earned income exclusion within five years after revoking it?
• Outcome: Approved
• Key authorities: IRC § 911(a)(1), (e); Treas. Reg. § 1.911-7(a), (b)

Full text (IRS public release)

Internal Revenue Service
Department of the Treasury
Washington, DC 20224

Number: 202549005
Release Date: 12/5/2025
Index Number: 911.11-03

[Third Party Communication:
Date of Communication: Month DD, YYYY]

Person To Contact:
-----------------, ID No. ------------------

Telephone Number:

Refer Reply To:
CC:INTL:B02
PLR-112613-25

Date:
September 04, 2025

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TY: -------

Legend

Taxpayer = -------------------------------
SSN: -----------------
Country X = --------
Country Y = ---------------
Year 1 = -------
Year 2 = -------
Year 3 = -------

Dear --------------:

This is in response to a letter received by our office on July 3, 2025, requesting
permission to reelect the foreign earned income exclusion under section 911(a)(1) of
the Internal Revenue Code (the Code) for Year 3. Additional information was received
on July 28, 2025.

The ruling contained in this letter is based upon information and representations
submitted by the taxpayer and accompanied by a penalty of perjury statement executed
by an appropriate party. While this office has not verified any of the material submitted
in support of the request for the ruling, it is subject to verification on examination.

FACTS

Taxpayer is a United States citizen who lived in Country X from Year 1 to Year 3.
During this period, Taxpayer worked for various companies in Country X. Beginning in
Year 1, Taxpayer elected to exclude from gross income his foreign earned income
under section 911(a)(1) of the Code (the “foreign earned income exclusion”). For Year
2, Taxpayer revoked the foreign earned income exclusion. In Year 3, Taxpayer

PLR-112613-25 2

relocated to Country Y and commenced a job with a new employer. Taxpayer has
represented that his tax rate is lower in Country Y than Country X.

Taxpayer requests permission to reelect the foreign earned income exclusion for
Year 3 and subsequent taxable years.

LAW AND ANALYSIS

Section 911(a)(1) permits certain taxpayers to elect to exclude from gross
income their foreign earned income. Section 911(e)(1) and Treas. Reg. § 1.911-7(a)(1)
provide that this election applies to the taxable year for which it is made and for all
subsequent taxable years, unless revoked by the taxpayer. Section 911(e)(2) and
Treas. Reg. § 1.911-7(b)(1) provide that once the election is revoked, it generally may
not be made again by the taxpayer until the sixth taxable year after the year for which
the revocation was made.

Treas. Reg. § 1.911-7(b)(2) provides that if an individual revokes the election to
exclude foreign earned income under Treas. Reg. § 1.911-7(b)(1), and desires to
reelect that same exclusion within five taxable years, the individual must obtain
permission by requesting a ruling. The Internal Revenue Service may permit the
individual to reelect the foreign earned income exclusion before the sixth taxable year
after considering all of the facts and circumstances that may be relevant to the
determination. Treas. Reg. § 1.911-7(b)(2) provides that relevant facts and
circumstances may include a period of United States residence, a move from one
foreign country to another foreign country with differing tax rates, a substantial change
in the tax laws of the foreign country of residence or physical presence, and a change of
employer.

Taxpayer affirmatively revoked the foreign earned income exclusion for Year 2.
Taxpayer desires to reelect the foreign earned income exclusion for Year 3, which is
within five years of Year 2. Therefore, Taxpayer must request permission to reelect the
foreign earned income exclusion. Taxpayer has represented that he changed employers
and moved from one foreign country to another foreign country with a different tax rate.

CONCLUSION

Accordingly, based solely on the information submitted and representations
made, Taxpayer may reelect the foreign earned income exclusion for Year 3.

Except as otherwise expressly provided herein, no opinion is expressed as to
whether Taxpayer otherwise satisfies the requirements of section 911 for excluding
foreign earned income from gross income. In addition, no opinion is expressed or
implied concerning the tax consequences of any aspect of any transaction or item
discussed or referenced in this letter.

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This ruling is directed only to the taxpayer requesting it. Section 6110(k)(3) of the
Code provides that it may not be used or cited as precedent.

A copy of this letter must be attached to any income tax return to which it is
relevant. Alternatively, a taxpayer filing its return electronically may satisfy this
requirement by attaching to the return a statement that provides the date and control
number of the letter ruling.

Sincerely,

/s/ Mallory Mendrala

Mallory E. Mendrala
Senior Technical Reviewer, Branch 2
Associate Chief Counsel (International)

cc: ---------------------

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