Today the Tax Court upheld the validity of Treas. Reg. §1.911-7(a)(2) in McDonald v. Commissioner. The IRS argued that McDonald was not entitled to the foreign earned income exclusion under section 911 because she failed to make a timely election in accordance with the provisions of Treas. Reg. §1.911-7(a)(2) to exclude her foreign earned income.  McDonald argued that she was entitled to the exclusion because the regulation is inconsistent with section 911 and therefore invalid.  The Tax Court disagreed and held that the regulation is a valid implementation of the statute, both under section 911 and under section 7805(d), which gives the Secretary of the Treasury general authority to promulgate regulations.