Form 2063: U.S. Departing Alien Income Tax Statement
A shorter alternative to Form 1040-C for certain departing aliens who have no unpaid U.S. tax liability and meet specific requirements.
Overview
IRS Form 2063, the U.S. Departing Alien Income Tax Statement, is a streamlined compliance document that certain nonresident and resident aliens must file before leaving the United States. It serves as a shorter alternative to the more comprehensive Form 1040-C (U.S. Departing Alien Income Tax Return) for aliens who can demonstrate they have no outstanding U.S. tax liability and have met all their U.S. tax filing obligations. The underlying legal authority stems from IRC Section 6851(d), which generally requires aliens departing the United States to obtain a "sailing permit" or certificate of compliance from the IRS before leaving.
The practical purpose of Form 2063 is to give the IRS an opportunity to verify that a departing alien has satisfied all federal income tax obligations before they leave U.S. jurisdiction. Without this certificate of compliance, aliens may be denied departure clearance by U.S. Customs and Border Protection, making timely filing critical. The form applies to both resident aliens and nonresident aliens, though the qualifying conditions for using the shorter Form 2063 versus the full Form 1040-C differ based on the individual's tax situation and filing history.
Not every departing alien is required to obtain a sailing permit. Certain categories of aliens are exempt from the requirement entirely — including diplomats, foreign government employees, students, exchange visitors, and others in specific visa categories. For those who do not qualify for an exemption and cannot use Form 2063 because they have unpaid taxes or unfiled returns, Form 1040-C is required instead. Understanding which form applies — and confirming eligibility before visiting the IRS office — is one of the most common planning steps CPA firms undertake for internationally mobile clients.
Who Files This Form?
Form 2063 is available to departing aliens who meet all of the following conditions: they have filed all required U.S. federal income tax returns for prior years, they have no unpaid U.S. federal income tax liability (including estimated tax obligations for the current year through the date of departure), and they can document their compliance status to the satisfaction of the IRS office they visit.
Both resident aliens and nonresident aliens may use Form 2063 if they qualify. A resident alien who has lived and worked in the United States and is now permanently relocating abroad, for example, may use this form if all prior returns are filed and no balance is owed. Similarly, a nonresident alien who earned U.S.-source income — perhaps through employment on a work visa — and has filed all required Form 1040-NR returns with no outstanding liability may also qualify.
Aliens who do not qualify to use Form 2063 — typically because they have unfiled returns, owe taxes, or cannot demonstrate compliance — must instead file Form 1040-C, which requires a full accounting of income and tax liability through the expected departure date.
Several categories of aliens are exempt from the sailing permit requirement altogether and need not file either Form 2063 or Form 1040-C. These include: representatives of foreign governments with diplomatic status, employees of international organizations in certain visa categories (such as A, G, or NATO visas), certain students and exchange visitors (F, J, M, and Q visa holders who have no taxable U.S.-source income beyond exempt amounts), and foreign government employees. Aliens whose visits are 30 days or fewer may also qualify for an exemption. Practitioners should consult the IRS instructions and Publication 519 to confirm exemption status before advising a client.
Key Fields
Taxpayer Identification Information
The filer's full legal name, U.S. address, foreign address, date of birth, and taxpayer identification number (TIN) — typically a Social Security Number or Individual Taxpayer Identification Number (ITIN). An incorrect or missing TIN is one of the most common reasons the IRS delays issuing the certificate of compliance, so verify this matches IRS records exactly.
Visa Type and Immigration Status
The form requires disclosure of the alien's visa classification (e.g., H-1B, L-1, F-1, B-1/B-2) and residency status for U.S. tax purposes — resident alien or nonresident alien. This matters because it determines whether the individual is taxed on worldwide income or only U.S.-source income, and it affects which prior returns were required.
Departure Date and Destination Country
The expected date of departure and the country to which the alien is departing. Because the certificate of compliance is tied to a specific departure date, if travel plans change significantly, the filer may need to return to the IRS office. Most CPA firms advise obtaining the certificate as close to the actual departure date as practical.
Tax Returns Filed Section
The filer must identify all U.S. federal income tax returns filed (Form 1040, 1040-NR, or others) for each prior year in which a filing obligation existed, including the tax years covered and the IRS service center where returns were filed. Gaps in filing history will disqualify the filer from using Form 2063 and trigger a requirement to file Form 1040-C.
Tax Liability Status
A certification — supported by documentation — that the filer has no outstanding U.S. federal income tax liability, including no unpaid estimated taxes for the portion of the current tax year prior to departure. The IRS officer reviewing the form will verify this against IRS records, so having transcripts or IRS account printouts in hand at the appointment is strongly recommended.
Current-Year Income Through Departure Date
Even on the shorter Form 2063, the filer must provide a summary of U.S.-source (and, for resident aliens, worldwide) income earned during the current tax year up to the departure date. This allows the IRS to confirm that no current-year tax liability exists or has been satisfied through withholding or estimated payments.
Employer Information
Name and address of the current U.S. employer, if applicable. The IRS may contact the employer to verify final wage payments and withholding. If the alien has already separated from employment before departure, documentation of the final pay date and withholding should be brought to the IRS appointment.
Signature and Date
The form must be signed under penalties of perjury by the departing alien. If a power of attorney is in place, the authorized representative may sign, but the original Form 2848 or equivalent must accompany the submission. An unsigned form will not be processed.
Filing Deadlines
Before departing the United States
Aliens may be denied departure clearance if they do not obtain a certificate of compliance.
Step-by-Step Instructions
- 1
Confirm eligibility for Form 2063 by verifying that the client has filed all required U.S. federal income tax returns for every prior year with a filing obligation, that no unpaid tax balance exists on any of those returns, and that no estimated tax underpayment exists for the current year through the departure date. If any condition is not met, the client must file Form 1040-C instead.
- 2
Determine whether the client qualifies for a complete exemption from the sailing permit requirement based on visa status, purpose of visit, or length of stay. Consult IRS Publication 519 (U.S. Tax Guide for Aliens) and the current IRS instructions to confirm. If exempt, document the basis for exemption in the client file.
- 3
Gather supporting documentation before the IRS appointment: IRS tax transcripts for all prior years, proof of any payments made (canceled checks, EFTPS confirmations), the client's passport and visa documents, the employer's final pay stub or W-2 if available, and ITIN or SSN confirmation. The IRS officer will review these documents, and incomplete submissions cause delays.
- 4
Complete Form 2063 with the client's full legal name (exactly as it appears on the TIN), TIN, visa type, residency status, departure date and destination, a list of all prior-year returns filed, and a summary of current-year U.S.-source income through the departure date. Double-check that the departure date is accurate; if plans change, the certificate may need to be reissued.
- 5
Schedule an in-person appointment at the nearest IRS Taxpayer Assistance Center (TAC) that handles international taxpayer issues. Form 2063 cannot be filed by mail for the purpose of obtaining the sailing permit certificate — the IRS must review the form and supporting documents in person and issue the certificate at the appointment. Allow at least two to three weeks of lead time before the planned departure date.
- 6
Attend the IRS appointment with the completed Form 2063 and all supporting documents. The IRS officer will verify the information against IRS records, may ask follow-up questions, and will issue a certificate of compliance (the "sailing permit") if everything is in order. Retain the original certificate; the client may be asked to present it upon departure.
- 7
After departure, ensure the client still files any required U.S. tax returns for the year of departure — typically a dual-status return or Form 1040-NR for the portion of the year during which U.S.-source income was earned or resident alien status applied. Form 2063 does not replace the final-year return; it only certifies that no liability is outstanding as of the departure date.
Common Mistakes to Avoid
Assuming Form 2063 replaces the final-year U.S. tax return.
Form 2063 is a pre-departure compliance certificate, not a substitute for the annual return. Advise clients that a Form 1040-NR or dual-status return for the year of departure will still be due by the standard deadline (or extended deadline) after they leave.
Attempting to file Form 2063 too close to the departure date without an IRS appointment.
IRS Taxpayer Assistance Centers require appointments, and availability can be limited — particularly at offices serving high-density international taxpayer populations. Build in at least two to three weeks of lead time and confirm the specific TAC handles international compliance matters before scheduling.
Failing to identify all prior-year filing obligations, including years in which a return was technically required but not filed.
Before completing the form, run a full transcript analysis for all years the client had U.S. tax presence. An unfiled prior-year return disqualifies the client from using Form 2063 and may require filing delinquent returns before the departure certificate can be issued.
Overlooking estimated tax obligations for the current year through the departure date.
If the client has self-employment income, investment income, or other income not subject to withholding, calculate and pay any estimated tax due for the current year through the departure date before attending the IRS appointment. An outstanding estimated tax liability will prevent issuance of the certificate.
Not verifying whether the client is actually exempt from the sailing permit requirement.
Certain visa holders (F, J, M, Q, A, G) and short-term visitors may not need to file Form 2063 or Form 1040-C at all. Confirming exemption status before incurring the time and cost of an IRS appointment avoids unnecessary burden — but document the exemption determination in writing in the client file.
Using a name or TIN on Form 2063 that does not exactly match IRS records.
The IRS officer will verify the TIN against IRS records in real time. If the name or number doesn't match — a common issue with clients who have changed their name or have an ITIN with an associated SSN — the certificate will not be issued until the discrepancy is resolved. Obtain an IRS account transcript in advance to confirm the name-control and TIN on file.
Frequently Asked Questions
Form 2063 is the U.S. Departing Alien Income Tax Statement, a pre-departure compliance form that certain aliens must file with the IRS before leaving the United States. It is required when an alien — resident or nonresident — does not qualify for an exemption from the sailing permit requirement and can demonstrate that all prior U.S. tax returns have been filed and no tax is owed. It must be filed before departure, not after.
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