1040c Sailing/Departure permit

Old Jun 23rd 2012, 5:39 am
  #1  
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Default 1040c Sailing/Departure permit

Anyone have any experience of filing one of these before leaving the US? It looks as if we both have to go to the IRS office in person to file 14-30 days prior to departure. More paperwork.......
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Old Jun 23rd 2012, 3:03 pm
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Default Re: 1040c Sailing/Departure permit

What is it for? I had no idea paperwork was needed by the IRS to leave the country.
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Old Jun 23rd 2012, 5:37 pm
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Default Re: 1040c Sailing/Departure permit

Originally Posted by Mummy in the foothills View Post
What is it for? I had no idea paperwork was needed by the IRS to leave the country.

http://www.irs.gov/businesses/articl...207261,00.html
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Old Jun 23rd 2012, 7:34 pm
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Default Re: 1040c Sailing/Departure permit

We're fine then it's for resident aliens and other visa holders moving, not US citizens.
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Old Jun 24th 2012, 4:37 pm
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Default Re: 1040c Sailing/Departure permit

The advice I received from my accountant (confirmed by another) was that, while this is a requirement in theory, it isn't necessary in practice. If you forget to file, there is no need to file ex-post because it's a departure permit; in theory, you could be prevented from departing without the permit, but that does not happen in practice. More than likely, you'll be delayed at your local IRS office because it isn't commonly used (they probably won't know what it is or what to do with it).

Note, of course, that this does not alter your tax liabilities (it just notifies IRS of your intent to leave). You will need to file a tax return and satisfy FBAR requirements for the year in which you depart.

Last edited by jbrown; Jun 24th 2012 at 4:40 pm.
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Old Jun 24th 2012, 6:05 pm
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Default Re: 1040c Sailing/Departure permit

So did you file when you left? Our accountant says many people leave without filing and have no problems, but technically it could be an issue. We plan on formally abandoning our green cards as soon as possible via the embassy in London, and will file our final US tax returns, FBAR, FATCA at the end of the year.
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Old Jun 25th 2012, 10:28 am
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Default Re: 1040c Sailing/Departure permit

Originally Posted by Pombat View Post
So did you file when you left? Our accountant says many people leave without filing and have no problems, but technically it could be an issue. We plan on formally abandoning our green cards as soon as possible via the embassy in London, and will file our final US tax returns, FBAR, FATCA at the end of the year.
My accountant essentially said the same thing. I didn't file and I haven't had any issues to date. You can't file retrospectively, because it's a departure permit. Technically, you could have issues on departure, but I think it's exceptionally unlikely (who would ask? the airline staff?). I left on an H-1B and had that cancelled post-departure, so my status on departure, in terms of the paperwork, was no different than previous departures. I will file my final (dual status) tax return/FACTA next year, together with the FBAR. The FACTA/FBAR are slightly more complicated now, because I'll have several UK accounts, including an ISA.
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Old Jun 25th 2012, 3:03 pm
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Default Re: 1040c Sailing/Departure permit

Thanks, I think we'll talk to the accountant again and see if it is really necessary.
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Old Jul 5th 2012, 8:31 pm
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Default Re: 1040c Sailing/Departure permit

Well, we spent an hour in our local tax office today and came away with the Certificate of Compliance that counts as the permit. We only had to complete the short form, not the long one. The field worker could not remember the last time she had done a departure permit. Given that the San Jose office covers the Bay Area and there are huge numbers of visa holders and green card holders here, I'd say it's pretty clear that hardly anyone bothers to get one! Still, I'm glad we are doing everything by the book because we'd be bound to be the ones who were not allowed to leave for some reason.....
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Old Jul 7th 2012, 1:21 am
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Default Re: 1040c Sailing/Departure permit

Originally Posted by Pombat View Post
Still, I'm glad we are doing everything by the book because we'd be bound to be the ones who were not allowed to leave for some reason.....
Whose going to prevent you from leaving? The TSA isn't, and the airlines sure aren't.
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Old Jul 7th 2012, 1:34 am
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Default Re: 1040c Sailing/Departure permit

Originally Posted by Bluegrass Lass View Post
Whose going to prevent you from leaving? The TSA isn't, and the airlines sure aren't.
I have no idea, probably nobody.

I'd rather not leave us open to any future hassles with the IRS for not having complied with their requirements, irrespective of whether or not we would actually be prevented from leaving.
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