H.R. 6341 (112th): To amend the Internal Revenue Code of 1986 to allow a partial exclusion under section 911 for ...

...foreign earned income of employees of United States Government contractors who do not fulfill their foreign country residency requirements by

112th Congress, 2011–2013. Text as of Aug 02, 2012 (Introduced).

Status & Summary | PDF | Source: GPO

I

112th CONGRESS

2d Session

H. R. 6341

IN THE HOUSE OF REPRESENTATIVES

August 2, 2012

introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to allow a partial exclusion under section 911 for foreign earned income of employees of United States Government contractors who do not fulfill their foreign country residency requirements by reason of an Armed Forces troop reduction or similar cause beyond the employer’s control.

1.

Partial section 911 exclusion for employees of United States Government contractors

(a)

In general

Subsection (d) of section 911 of the Internal Revenue Code of 1986 (relating to definitions and special rules) is amended by redesignating paragraphs (5) through (9) as paragraphs (6) through (10), respectively, and by inserting after paragraph (4) the following new paragraph:

(5)

Waiver of period of stay in foreign country on account of termination of defense contract, etc

(A)

In general

The requirements of paragraph (4)(B) shall be treated as met by an employee of a United States Government contractor who, before meeting the requirements of paragraph (1), leaves the foreign country referred to in paragraph (4)(A) as a direct result of—

(i)

a reduction in the number of personnel serving in a combat zone in such country as members of the Armed Forces of the United States,

(ii)

a termination of the contract under which such contractor is performing services in a combat zone in such country or in direct support of operations of the Armed Forces of the United States in a combat zone in such country, or

(iii)

the termination of such employee’s employment with the contractor on account of either of the foregoing.

(B)

United States Government contractor

For purposes of subparagraph (A), the term United States Government contractor means any person who is performing services in a foreign country directly or indirectly pursuant to a contract with the United States.

(C)

Employee

For purposes of subparagraph (A), the term employee includes an employee within the meaning of section 401(c)(1).

(D)

Combat zone

For purposes of this paragraph, the term combat zone has the meaning given such term by section 112(c)(2).

(E)

Application of paragraph

This paragraph shall apply to employees who leave the foreign country referred to in paragraph (4)(A) after December 31, 2011.

.

(b)

Clerical amendment

The heading for paragraph (4) of section 911(d) of such Code is amended by inserting on account of war, civil unrest, etc after foreign country.

(c)

Effective date

The amendments made by this section shall apply to taxable years ending after December 31, 2011.