Taxation of Aliens Leaving America

Visiting the United States can make you a taxpayer. If you are a nonresident alien visiting the United States only for pleasure, receive no income from you don’t have to file with the IRS.  But, what if you are working on your laptop or you spend a few days at a board meeting? Business meetings are almost always subject to US tax unless an income tax treaty provides an exemption.

Before leaving the United States or any of its possessions permanently or for an extended amount of time, all U.S. resident aliens and nonresident aliens (with certain exceptions) must prove they have met all federal tax requirements. Using an ancient tax law (originally called a sailing permit reflecting the mode of transportation when the law was passed and now a departure permit), the IRS can prevent the non-Citizen from leaving the US.

Foreign business travelers, aliens with an investor visa and the green card holders are now required to bring the current year's bank statements and tax documents to the IRS. The IRS will then compute the taxes due.

In short, all aliens must prove they have met all federal tax requirements before they leave the country. You can learn more about this "Sailing Permit" on this link. 

If you need help with interpreting the rules for departing aliens and support with the tax clearance, please give us a call.