Peace Corps Volunteers Tax Improvement Act of 2007 - Amends the Internal Revenue Code to allow a taxpayer election to suspend the five-year ownership and use requirements for the tax exclusion of gain from the sale of a principal residence during any period in which such taxpayer (or spouse) is serving outside the United States as a Peace Corps employee or volunteer.
Directs the Secretary of the Treasury, in consultation with the Director of the Peace Corps, to publish guidance on allowable tax deductions related to Peace Corps service.