6360
The following diagnostic is generating:
Form 2555 #{PrefixNum}: The beginning date for Bona Fide Residence is after January 1, {CurrentTaxYear}. In order to qualify for the Bona Fide Residence test a taxpayer must be a bona fide resident of a foreign country for an uninterrupted period which includes an entire taxable year. Once you have established bona fide residence in a foreign country for an uninterrupted period that includes an entire tax year, you will qualify as a bona fide resident for the period starting with the date you actually began the residence and ending with the date you abandon the foreign residence. In order to correctly claim the foreign earned income exclusion via the Bona Fide Residence Test, the taxpayer must complete the period that includes one entire taxable year. Form 2350 provides for extension periods specifically tailored for those taxpayers expecting to qualify for special tax treatment under IRC Sec. 911.
Solution:
If the taxpayer was in the foreign country but not for a full calendar year, user the Physical Presence Test instead of the Bona fide residence test.A
If this diagnostic is generating in error, overlapping dates in Travel information may be causing the issue.
To Resolve:
1. Go to Screen 31, Foreign Income Exclusion (2555).
2. Review the dates in the Travel Information Section to verify that none overlap.
3. Check diagnostics.
4. The Dates for the Physical Presence Test may be overridden in the Physical Presence Test section under Beginning date[O] and Ending date[O]
5. To force the program to use the Physical presence test enter a 2A underr 1=bonafide residence test, 2= physical presence test [O] in the General Information section.
