US Citizen abroad with form 2555

Technical topics regarding tax preparation.
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A high school classmate and friend had been living and working abroad for a number of years.

His company prepares his 1040 for him with form 2555 included. That part looks okay.

However, this year due to pandemic he was was reassigned to USA for awhile and resided in Arkansas.

His mailing address is his parent's residence, in his home state of Oregon. That is the address that has always gone on form 1040 while he as been abroad.

For 2020 an unused housing allowance was allocated to US earnings along with a percent of furlough wages.

His regular wages and the balance of the furlough are allocated as foreign earned income and properly excluded on form 2555.

His company also filed as Oregon full year resident, which I believe is incorrect, since Oregon considers a resident living abroad as a nonresident if the conditions for the foreign exclusion apply.

To sum this up, does anyone see a reason why an Oregon return should have been filed?

Also, I question whether an Arkansas nonresident should be filed since the only income he received there was furlough wages and from out of state investments.

Thank you for any comments you might have.
 

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