Departure Permit and Form 1040-C Guide for Departing Aliens (2025-2026)
How to approach this
A source-based path from understanding the rule to filing and recordkeeping.
Determine the requirement
Confirm whether and how the rule applies to you.
Identify the forms
Map the requirement to the specific IRS forms involved.
Prepare and file
Complete the forms accurately and submit on time.
Retain records
Keep documentation supporting every figure you report.
Key Takeaways
- Departing aliens may need a sailing or departure permit through Form 2063 or Form 1040-C unless an exception applies.
- Form 1040-C is usually required if a permit is needed and Form 2063 is not available.
- Form 1040-C does not replace the annual U.S. income tax return.
- The IRS instructions call for TAC-office timing well before the departure date.
The sailing permit rules still matter for departing aliens
The 2026 Instructions for Form 1040-C explain that a departing alien may need a sailing or departure permit, generally through Form 2063 or Form 1040-C, unless an exception applies. If the taxpayer must get a permit and does not qualify to use Form 2063, the instructions say Form 1040-C is required.
This is one of those old IRS procedures that many modern founders have never heard of until they are already preparing to leave the country. The issue usually appears late, when payroll has stopped and flights are already booked.
Form 1040-C is a departure filing, not a substitute for the annual return
The instructions say Form 1040-C generally reports income received or reasonably expected to be received through the date of departure, and tax shown as due generally must be paid unless the IRS accepts a bond. But the same instructions also say Form 1040-C is not an annual U.S. income tax return. If a yearly return is otherwise required, it still has to be filed.
That means the departure filing solves one problem only: obtaining departure clearance. It does not eliminate the normal year-end return work.
Timing and logistics should be handled early
The instructions tell taxpayers to visit a TAC office at least two weeks, but no more than thirty days, before leaving the United States and to schedule an appointment in advance. They also describe payment expectations and the documents usually required.
For a founder or worker leaving on a tight timeline, this can become a real operational issue. The permit process should be reviewed while travel is still flexible, not after every bank, payroll, and immigration step has already been set in motion.
Frequently Asked Questions
Is Form 1040-C the same as my annual tax return?
No. The IRS instructions say Form 1040-C is not an annual U.S. income tax return.
When should a departing taxpayer contact the IRS about a sailing permit?
The 2026 Instructions for Form 1040-C say the taxpayer should visit a TAC office at least two weeks, but not more than thirty days, before leaving.
Can the tax on Form 1040-C ever be secured by bond instead of immediate payment?
Yes. The instructions state that the IRS may permit a bond in some cases.
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