Sailing Permit Explained: Forms 1040-C and 2063
The departure clearance non-citizens are required to get, the exemptions, and how it fits the final return
Reviewed by the Fairlight Accounting cross-border tax team — U.S. & Canadian Tax Desks
A sailing permit — a certificate of compliance — is the IRS clearance most departing aliens, resident or nonresident, must obtain before leaving the United States, showing their U.S. tax is settled. It's requested on Form 1040-C (which computes the tax due) or the short Form 2063. Many visitors, students, and exchange visitors are exempt; it isn't a final return.
On this page
Which form (2026)
| Form | When |
|---|---|
| Form 2063 | Aliens (resident or nonresident) with no taxable income for the year through departure or for the prior year, and resident aliens with taxable income whose departure won't hinder tax collection — a short statement with no tax computation, good for all departures that year |
| Form 1040-C | Departing aliens who don't qualify for Form 2063 — income through departure is reported and the tax due, plus any past-year tax, is paid before leaving (unless a bond is posted or the IRS accepts that the person will return) |
| Exempt | Pleasure visitors (B-2); business visitors (B-1, B-1/B-2, or Visa Waiver) staying 90 days or less in the tax year; border-crossing card holders; Canadian or Mexican residents commuting to U.S. jobs with wages subject to withholding; F, J, M, H-3, and Q students, trainees, and exchange visitors (and families) with only specified income; diplomats and certain international-organization employees; certain military trainees |
How it works
Apply in person at a local IRS office at least two weeks, and no earlier than 30 days, before departure — appointments are required (844-545-5640) — with passports, visas, the last two years' returns, and records of income and tax paid. The permit is not a final return: the departing person still files a dual-status or nonresident return for the year after it ends.
In practice
Enforcement at departure is rare, and many departing Canadians aren't asked for one — but resident aliens with income (TN, L-1, H-1B holders, green card holders surrendering status) are technically required to obtain it, and having it can avoid later questions.
Frequently asked questions
What is a sailing permit?
A certificate from the IRS that a departing alien has satisfied U.S. tax obligations.
Do Canadians leaving the U.S. need one?
Technically, many resident aliens do; visitors and some visa holders are exempt.
Is the sailing permit my final return?
No — you still file the final dual-status or nonresident return.
Which form do I file?
Form 2063 if you had no taxable income, or as a resident alien whose departure won't hinder tax collection; otherwise Form 1040-C.
Official sources
The IRS explains: “A departing alien clearance, also known as the sailing permit or departure permit, is a document most aliens must secure from the Internal Revenue Service (IRS) before leaving the United States.” — Internal Revenue Service, Departing alien clearance (Sailing permit), https://www.irs.gov/individuals/international-taxpayers/departing-alien-clearance-sailing-permit
Next step
Fairlight Accounting is a cross-border accounting and tax practice with a U.S. Tax Desk and a Canadian Tax Desk. Our U.S. Tax Desk and Canadian Tax Desk handle departure clearances, final dual-status returns, and Canadian return-year planning. See pricing or book a call.
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