What Form 1040-C Is For
Form 1040-C 2015 lets the IRS review your income, deductions, and expected tax liability for the part of the 2015 tax year that occurred before your departure. The review covers wages, business earnings, investment income, and other income received while you were in the United States. Once the IRS confirms the information, an employee can sign your sailing or departure permit, showing that you are current on your U.S. income taxes. This permit is necessary because it confirms that your federal tax responsibilities are up to date when you leave the country.
When You’d Use Form 1040-C
You use this form when you are required to obtain a departure permit before leaving the United States. This applies to individuals who earned taxable income in 2015 and must settle any expected tax due before they travel. You may need the form in several situations:
- Leaving the United States: A sailing permit is required when your departure triggers a tax review. The form confirms that your income tax account is up to date.
- Timing Requirements: You must file the form between 30 and 14 days before your departure. Filing too close to your travel date may limit the availability of appointments.
- You Earned Taxable Income in 2015: Filing is required if you received taxable income, had tax withheld, or earned money tied to a U.S. trade or business.
- Early-Year Departures: If you leave between January 1 and April 15, you may also need to file the preceding year’s income tax returns.
- Appointment Requirement: You must schedule an appointment at a local IRS office, where an employee reviews your form, documents, and tax computation.
- Limited Exceptions: In some cases, the IRS may issue the permit even without immediate payment if it believes collection is secure.
These rules ensure that anyone leaving during the year resolves their federal tax responsibilities before departing. Learn the steps for requesting penalty abatement when unreported income or late filings create obligations that must be resolved before departure.
Key Rules or Details for 2015
Before filing, you should understand who must complete the form, how residency is determined, and what income must be reported for the 2015 tax year.
- Exempt Individuals: Certain individuals are exempt from requiring a departure permit, including diplomats with diplomatic passports, select exchange visitors, commuters from Canada or Mexico, short-term travelers, alien military trainees, and members of a representative’s household. These exemptions do not apply if you received taxable income and your departure could affect collection.
- Residency Determination: The IRS uses the green card test and substantial presence test to decide whether you are a resident alien or nonresident alien, and this classification affects your reporting rules.
- Income Reporting: Resident aliens are required to report income from all sources. Nonresident aliens are required to report income from U.S. sources that are effectively associated with a U.S. trade or business, along with certain other payments.
- Identification Requirements: You must provide a valid taxpayer identification number, such as a Social Security Number or an individual taxpayer identification number.
- Payment and Treaty Rules: You may need to pay the tax shown or provide a bond, and some people may use tax treaty benefits if supported by documents.
Review how an IRS payment plan can help settle outstanding tax balances identified during the Form 1040-C review.
Step-by-Step (High Level)
Step 1—Determine Whether You Must File
Confirm whether your situation requires a departure permit. Review your residency status, income earned, and whether you received taxable income during the year.
Step 2—Gather Required Documentation
Collect your passport, visa or alien registration card, employer-showing-wages-paid statements, bank records, prior income tax returns filed, proof of income taxes paid, and a document showing your date of departure, such as an airline ticket.
Step 3—Schedule Your IRS Appointment
Contact a local IRS office to schedule an appointment. If you expect to file jointly, both spouses should appear unless IRS procedures state otherwise.
Step 4—Complete Form 1040-C and Supporting Schedules
Complete the form and all required schedules. List taxable income, business expenses, deductions, withholding tax, and estimated tax payments. Ensure your tax computation is accurate to facilitate verification by the IRS during the appointment.
Step 5—Attend the Appointment
Bring your completed form and all supporting documents. The IRS will review your information, confirm the tax shown, and may accept a bond guaranteeing payment if immediate payment is not possible. If everything is correct, an IRS employee will sign your departure permit.
Step 6—File Your Annual Return Later
After the year ends, you must still file your annual income tax returns using Form 1040 or Form 1040-NR. Amounts paid with Form 1040-C count as a credit toward the whole year’s tax.
Common Mistakes and How to Avoid Them
Filing for a departure permit can be confusing, and several common mistakes cause delays. Below are frequent issues and simple ways to avoid them:
- Starting Too Late: Begin gathering documents at least a month in advance of your departure to avoid missing the filing deadline.
- Incorrect Exemption Assumptions: Review exemption rules carefully. Even if you believe you qualify, taxable income may still require you to file.
- Misjudging Residency Status: Use the residency tests carefully to confirm your classification and avoid reporting mistakes.
- Leaving Out Expected Income: Estimate any remaining payments you expect to receive before year-end.
- Treating Form 1040-C as a Final Return: You must still file your regular annual return using Form 1040 or Form 1040-NR.
- Overlooking Treaty Benefits: Bring documents showing any treaty benefits you may claim so the IRS can apply the correct rules.
What Happens After You File
After you file, the IRS reviews your form, income received, and supporting records under income tax laws. If complete, an employee signs your departure permit, which applies based on your departure date for the entire tax year. They may request documents indicating your status under immigration laws, details from the preceding tax year, or proof of income tax withholding.
Some individuals may qualify for special tax treaty benefits with a foreign government, though involvement with the attorney general is uncommon. Learn how to authorize a representative through Form 2848 if you need assistance communicating with the IRS about your departure-related tax obligations.
FAQs
What happens if I left the United States in 2015 without filing IRS Form 1040 for 2015?
If you were required to obtain a permit but failed to file, you should file your annual return as soon as possible and address any balance the IRS identifies.
Can I file Form 1040-C by mail or online?
No, the IRS requires an in-person appointment before issuing a departure permit.
Do short-term visitors or nonresident aliens always need a departure permit?
Most short-term visitors do not, but nonresident aliens with U.S.-source income may be required to obtain one.
When will I receive a refund related to the tax paid with Form 1040-C?
Refunds are issued only after you file your annual return because the IRS applies credits at that time.
Can resident aliens file jointly on Form 1040-C?
Joint filing is allowed only when both spouses qualify as resident aliens and plan to file a joint annual return.
