© 2024 American Payroll Institute, Inc.
April 5, 2024 Volume 32 Issue 4
IRS Announces 2024 Foreign High-Cost Locations
The IRS issued a notice providing adjustments to the
limitation on housing expenses for specific locations for
purposes of the foreign housing cost exclusion under IRC
§911 [Notice 2024-31, 3-20-24].
IRC §911 generally allows a U.S. citizen or resident living
abroad to exclude from U.S. taxable income certain foreign
earned income. A qualified individual is also allowed an
exclusion from gross income for certain housing costs paid
or incurred on the individual’s behalf that exceed a certain
base housing amount.
Under the Tax Increase Prevention and Reconciliation
Act of 2005, the Secretary of the Treasury is authorized to
make annual adjustments to this limit based on geographic
differences in housing costs.
A qualified individual incurring housing expenses
in one or more of the listed high-cost localities in 2024
may use the adjusted limit specified (instead of $37,950)
in determining the housing cost amount on Form 2555,
Foreign Earned Income. The $37,950 limit continues to apply
to a qualified individual not incurring housing expenses in a
listed high-cost locality.
Notice 2024-31, which includes a revised table listing
high-cost locations, supersedes Notice 2023-26 (see PAYROLL
CURRENTLY, Issue 4, Vol. 31). Notice 2024-31 is effective
for taxable years beginning on or after January 1, 2024.
However, a taxpayer may elect to apply the 2024 adjusted
housing limitations contained in the notice to his/her
taxable year beginning in 2023.
IRS Grants Waivers for 2023 Foreign Exclusion Requirement
The IRS released a supplemented list of the six countries
for which some of the foreign earned income exclusion
requirements of IRC §911 are waived for 2023 [Rev. Proc.
2024-17, 3-19-24].
The list contains Belarus (with a departure date of
January 26, 2023) Haiti (with a departure date of July 27,
2023) Iraq (with a departure date of October 20, 2023)
Niger (with a departure date of August 2, 2023) Sudan
IRS Announces 2024 Foreign High-Cost Locations........................ 1
IRS Grants Waivers for 2023 Foreign Exclusion Requirement. 1
EEOC to Open 2023 EEO-1 Data Collection on April 30............... 2
Court Vacates NLRB Joint Employer Rule.......................................... 2
2024 Fiscal Year Budget Funds Government. ..................................2
Biden Administration Releases Fiscal 2025 Budget....................... 3
IRS Releases Publication on Withholding for 2024........................ 3
IRS Revises Substitute Forms 941, 8974 Specifications................. 4
IRS Updates Application for Extension to Furnish Statements. .4
USCIS Creates Video for Remote Document Examination......... 4
Register to Attend PayrollOrg’s 42nd Annual Payroll
Congress............................................................................................ 5
E-Verify Updates Tutorial, Knowledge Test....................................... 5
Free Reference Book Answers Payroll Questions............................ 5
Payroll Solutions. ......................................................................................6
Nacha Creates Campaign to Highlight Direct Deposit................ 6
Nacha Reports ACH Network Handled 31.5 Billion Payments
in 2023..................................................................................................... 6
OCSS to Present Free Webinar on Child Support Portal
on April 30.............................................................................................. 7
Third-Party Payers May Be Liable for ERC Underpayments........ 7
ICE Updates IMAGE Webpage for Employers. .................................8
Nutrition, Wellness Expenses Are Not Medical Expenses............. 8
IRS Explains Employer-Provided Child Care Tax Credit................. 8
IRS Revises Form W-9, Request for TIN and Certification. ............9
DOL Enters Into Misclassification Agreements. ..............................9
IRS Updates Digital Assets Webpage. ................................................9
IRS Criminal Investigation Releases Annual Report....................10
Special Report: PayrollOrg’s 2024 Capital Summit......................10
State and Local Highlights............................................................. 15
PayrollOrg Reaches Out to D.C. Mayor Concerning AI
Chatbot .....................................................................................17
PayrollOrg Contacts New York on Child Support
Lump-Sum Payments. ............................................................17
Wisconsin Earned Wage Access Bill Becomes Law. ..............18
Massachusetts Holds Hearing on Earned Wage
Access Bill................................................................................... 18
PayrollOrg Releases Second Edition of EWA Report............. 18
Starting with this issue of PAYROLL CURRENTLY, references to The Payroll Source® refer to the 2024 edition of the book,
which is printed and available online on the PayrollOrg Bookshelf. The online version is updated throughout the year.
April 5, 2024 Volume 32 Issue 4
IRS Announces 2024 Foreign High-Cost Locations
The IRS issued a notice providing adjustments to the
limitation on housing expenses for specific locations for
purposes of the foreign housing cost exclusion under IRC
§911 [Notice 2024-31, 3-20-24].
IRC §911 generally allows a U.S. citizen or resident living
abroad to exclude from U.S. taxable income certain foreign
earned income. A qualified individual is also allowed an
exclusion from gross income for certain housing costs paid
or incurred on the individual’s behalf that exceed a certain
base housing amount.
Under the Tax Increase Prevention and Reconciliation
Act of 2005, the Secretary of the Treasury is authorized to
make annual adjustments to this limit based on geographic
differences in housing costs.
A qualified individual incurring housing expenses
in one or more of the listed high-cost localities in 2024
may use the adjusted limit specified (instead of $37,950)
in determining the housing cost amount on Form 2555,
Foreign Earned Income. The $37,950 limit continues to apply
to a qualified individual not incurring housing expenses in a
listed high-cost locality.
Notice 2024-31, which includes a revised table listing
high-cost locations, supersedes Notice 2023-26 (see PAYROLL
CURRENTLY, Issue 4, Vol. 31). Notice 2024-31 is effective
for taxable years beginning on or after January 1, 2024.
However, a taxpayer may elect to apply the 2024 adjusted
housing limitations contained in the notice to his/her
taxable year beginning in 2023.
IRS Grants Waivers for 2023 Foreign Exclusion Requirement
The IRS released a supplemented list of the six countries
for which some of the foreign earned income exclusion
requirements of IRC §911 are waived for 2023 [Rev. Proc.
2024-17, 3-19-24].
The list contains Belarus (with a departure date of
January 26, 2023) Haiti (with a departure date of July 27,
2023) Iraq (with a departure date of October 20, 2023)
Niger (with a departure date of August 2, 2023) Sudan
IRS Announces 2024 Foreign High-Cost Locations........................ 1
IRS Grants Waivers for 2023 Foreign Exclusion Requirement. 1
EEOC to Open 2023 EEO-1 Data Collection on April 30............... 2
Court Vacates NLRB Joint Employer Rule.......................................... 2
2024 Fiscal Year Budget Funds Government. ..................................2
Biden Administration Releases Fiscal 2025 Budget....................... 3
IRS Releases Publication on Withholding for 2024........................ 3
IRS Revises Substitute Forms 941, 8974 Specifications................. 4
IRS Updates Application for Extension to Furnish Statements. .4
USCIS Creates Video for Remote Document Examination......... 4
Register to Attend PayrollOrg’s 42nd Annual Payroll
Congress............................................................................................ 5
E-Verify Updates Tutorial, Knowledge Test....................................... 5
Free Reference Book Answers Payroll Questions............................ 5
Payroll Solutions. ......................................................................................6
Nacha Creates Campaign to Highlight Direct Deposit................ 6
Nacha Reports ACH Network Handled 31.5 Billion Payments
in 2023..................................................................................................... 6
OCSS to Present Free Webinar on Child Support Portal
on April 30.............................................................................................. 7
Third-Party Payers May Be Liable for ERC Underpayments........ 7
ICE Updates IMAGE Webpage for Employers. .................................8
Nutrition, Wellness Expenses Are Not Medical Expenses............. 8
IRS Explains Employer-Provided Child Care Tax Credit................. 8
IRS Revises Form W-9, Request for TIN and Certification. ............9
DOL Enters Into Misclassification Agreements. ..............................9
IRS Updates Digital Assets Webpage. ................................................9
IRS Criminal Investigation Releases Annual Report....................10
Special Report: PayrollOrg’s 2024 Capital Summit......................10
State and Local Highlights............................................................. 15
PayrollOrg Reaches Out to D.C. Mayor Concerning AI
Chatbot .....................................................................................17
PayrollOrg Contacts New York on Child Support
Lump-Sum Payments. ............................................................17
Wisconsin Earned Wage Access Bill Becomes Law. ..............18
Massachusetts Holds Hearing on Earned Wage
Access Bill................................................................................... 18
PayrollOrg Releases Second Edition of EWA Report............. 18
Starting with this issue of PAYROLL CURRENTLY, references to The Payroll Source® refer to the 2024 edition of the book,
which is printed and available online on the PayrollOrg Bookshelf. The online version is updated throughout the year.
