Posted by Fletcher Accounting and Tax Service Inc.

Obtaining Alien Tax Clearance

Obtaining Alien Tax Clearance

Resident or a nonresident alien departing the US, you will normally have to expose that you have complied with the U.S. Profits tax laws earlier than departing from the US and get alien tax clearance. You do that by obtaining a tax clearance report, typically known as a “Departure Permit” or “Sailing Permit” from the IRS.

There are six classes of aliens now not required to attain an alien tax clearance:

  • A representative of foreign authorities with diplomatic passports, participants in their family, and servants accompanying them.
  • Employees of international agencies and foreign authorities (other than those exempt beneath class 1) and contributors in their families.
  • Alien students, business trainees, and trade traffic, inclusive of their spouses and youngsters, who enter on an F-1, F-2, H-three, H-4, J-1, J-2, or Q visa.
  •  Alien students, inclusive of their spouses and kids, who input on an M-1 or M-2 visa.
  • Certain different extraterrestrial beings briefly inside the United States who have acquired no taxable profits at some stage in the tax year as much as and such as the date of departure or all through the other tax 12 months.
  • Alien residents of Canada or Mexico who often go back and forth among that united states and the United States for employment.

If you do not fall into any above categories, you must get a departure or sailing permit. To gain a permit, report Form 1040-C (PDF) or Form 2063 (PDF) (whichever applies) along with your nearby IRS office earlier than you depart the US.

Form 2063 

This is a quick form that asks for certain records, however, does now not consist of tax computation. The following departing aliens can get their departure or sailing lets in via submitting Form 2063:

Aliens, whether or not resident or nonresident, who have had no taxable income for the tax yr as much as and along with the date of departure and for the previous 12 months, if the duration for filing the earnings tax return for that 12 months has no longer expired.

Resident aliens who have acquired taxable earnings at some stage in the tax year or preceding year and whose departure will no longer restrict the collection of any tax. 

Form 1040-C

If you need to get a departure or permit to sail and you do no longer qualify to report Form 2063, you ought to record Form 1040-C.

Ordinarily, all income received or fairly anticipated to be acquired in the course of the tax year up to and which include the date of departure need to be suggested on Form 1040-C, and the tax on it has to be paid. When you spend any tax proven as due at the Form 1040-C, and also you record all taxes for previous years, you'll get hold of a departure or sailing allow. 

How to obtain alien tax clearance for the departure permit?

Aliens should obtain their departure or sailing permit before they depart the US. You have to apply for the departure permit no earlier than 30 days before you plan to depart, however at least two weeks in advance of your departure. To get your departure permit, go to your nearest Taxpayer Assistance Center. If you are married to a resident or non-resident alien who is also leaving the country with you, then both of you must go to the IRS office. 

You have to bring with you all of the following information and documents:

  • A valid passport with six months and more expiry and your alien registration card or visa.
  • Photocopies of the final years’ U.S. Earnings tax returns with proof of payment of any balances due.
  • Proof of any bills of expected tax for the beyond the year and this 12 months.
  • Substantiation of deductions for enterprise expenses and itemized deductions claimed.
  • Documentation for dependents claimed.
  • A statement from every organization displaying the wages paid and tax withheld from January 1st to the date of departure (For this announcement, you can use a payroll deduction slip in your final paycheck, if it shows this records).
  • If you are self-employed, you need to deliver a profit and loss statement for the modern-day 12 months up to the date of departure.
  • Documents showing any benefit or loss from the sale of private and/or actual belongings, which includes capital assets and merchandise.
  • Documents concerning scholarships or fellowship offers.
  • Documents that indicate that you qualify for any special tax treaty advantages.
  • Document verifying your date of departure from the United States, inclusive of an airline price ticket.
  • Document verifying your U.S. Taxpayer identification wide variety, consisting of a social security card or an IRS issued CP 565 showing your person taxpayer identity (ITIN) wide variety.
  • If you've got these files and attain alien tax clearance you need to get hold of your departure permit straight away.
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