Definition
A Departure Permit or Sailing Permit is a certificate of compliance issued by the Internal Revenue Service (IRS) signifying that a departing alien has fulfilled all U.S. income tax obligations. This document is essential for foreign nationals leaving the United States to ensure they have settled their income tax dues. To obtain this permit, the alien must file either Form 1040-C (U.S. Departing Alien Income Tax Return) or Form 2063 (U.S. Departing Alien Income Tax Statement) and must later file Form 1040NR after the end of the tax year.
Examples
- An International Student Concluding Studies: A student on an F-1 visa finishing their studies and returning to their home country needs to obtain a Departure Permit to certify their U.S. tax compliance.
- Business Executive Finishing Assignment: A business executive on a temporary work assignment in the U.S. would need this permit before permanently relocating back to their home country.
- Tourist Visa Holder: If a tourist who has earned income in the U.S. plans to leave the country, they are required to get a Departure Permit to ensure their income taxes in the U.S. are settled.
Frequently Asked Questions (FAQs)
What is a Departure Permit?
A Departure Permit, also known as a Sailing Permit, is a certificate issued by the IRS confirming that a departing alien has met all U.S. income tax obligations.
Who needs to obtain a Departure Permit?
Any foreign national who has earned income in the U.S. and is departing the country is typically required to obtain a Departure Permit.
How do I obtain a Departure Permit?
To obtain a Departure Permit, you must file Form 1040-C or Form 2063 with the IRS.
What forms are associated with the Departure Permit?
- Form 1040-C: U.S. Departing Alien Income Tax Return
- Form 2063: U.S. Departing Alien Income Tax Statement
- Form 1040NR: U.S. Nonresident Alien Income Tax Return (filed after the end of the tax year)
When should I file for a Departure Permit?
You should file for a Departure Permit before you leave the U.S. to ensure that your tax obligations are settled.
Related Terms
IRS (Internal Revenue Service)
The federal agency responsible for enforcing the income tax laws and collecting taxes.
Form 1040-C
A form used by departing aliens to report and settle their U.S. income tax obligations before leaving the country.
Form 2063
An alternate form to Form 1040-C, used in less complex tax situations, where the alien is certifying that they do not owe income tax.
Form 1040NR
A form used by nonresident aliens to file their annual income tax return after the end of the tax year.
Online References
Suggested Books for Further Studies
- U.S. Master Tax Guide by CCH Tax Law Editors.
- Federal Income Taxation by Peter J. Eisenstadt.
- International Aspects of U.S. Income Taxation by Joseph Isenbergh.
Fundamentals of Departure Permits: Taxation Basics Quiz
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