  By propagating the many-body Schr\"odinger equation, we determine the exact time-dependent Kohn-Sham potential for a system of strongly correlated electrons which undergo field-induced tunneling. Numerous features are entirely absent from the approximations commonly used in time-dependent density-functional theory. The self-interaction correction is strong and time dependent, owing to electron localization, and prominent dynamic spatial potential steps arise from minima in the charge density, as modified by the Coulomb interaction experienced by the partially tunneled electron. 
Exact time-dependent density-functional potentials for strongly   correlated tunneling electrons