Rev. Rul. 55-468

SECTION 1. PURPOSE.

The purpose of this Revenue Ruling is to establish uniform procedures for the issuance of Certificates of Compliance to, and for the clearance of, aliens departing from the United States or any possession of the United States.

SEC. 2. AUTHORITY.

Section 6851(d) of the Internal Revenue Code of 1954 provides that no alien shall depart from the United States unless he first procures from the District Director of Internal Revenue a certificate that he has complied with all the obligations imposed upon him by the income tax laws.

SEC. 3. SCOPE.

The provisions of this Revenue Ruling, in general, apply to all aliens, both resident and nonresident, departing from the United States, or any possession thereof except as otherwise provided herein. The term `United States,' as used in this Revenue Ruling, includes the States, the Territories of Alaska and Hawaii and the District of Columbia.

SEC. 4. FILING OF RETURN AND PAYMENT OF TAX.

.01 An alien, whether resident or nonresident, who intendes to depart from the United States or any possession thereof, should procure from the District Director for the district in which he or his representative is located a certificate that he has complied with all the obligations imposed upon him by the income tax laws. However, if necessary, a certificate may be obtained from the District Director in whose district the point of departure is located. An alien presenting himself at the point of departure without such a Certificate of Compliance will be examined by an Internal Revenue officer at that point, and such taxes as appear to be due and owing will be collected.

.02 The return or statement due from departing aliens should be filed on one of the three following forms:

Form 1040C, `U.S. Departing Alien Income Tax Return,' by aliens whose taxable period has been terminated.

Form 1040D, `U.S. Departing Alien Income Tax Information Return,' by aliens whose taxable period has not been terminated.

Form 2063, `U.S. Departing Alien Income Tax Statement,' for nonresident aliens having no taxable income from United States sources for taxable period.

.03 An alien who is examined and found not to be liable for a return or for the payment of taxes previously assessed will be issued a Certificate of Compliance. Form 2063 (see attachment) will ordinarily be used to obtain this information.

.04 The Commissioner may, upon satisfactory evidence that a taxpayer intends to depart immediately from the United States, or any possession of the United States, declare the taxable period of such taxpayer immediately terminated and make demand for immediate payment of the tax for the taxable period declared terminated, and so much of the tax for the preceding years as is unpaid. Under the Internal Revenue Code of 1954, for taxable years beginning after December 31, 1953, the personal exemption should not be prorated in cases where the taxable year is terminated. Form 1040C will ordinarily be used for this return. See Rev. Rul. 54-428, C.B. 1954-2, 43.

.05 In the case of an alien who is not in default in making any return, or paying any income tax, the Commissioner may waive termination of the taxable period and the alien may procure a Certificate of Compliance by: (1) appointing in writing on Form 934 an attorney-in-fact, resident in the United States, to make his income tax return or returns; (2) making on Form 1040D, a return of information; and (3) either paying the estimated tax as shown on such information return or furnishing security approved by the District Director.

.06. As a general rule, departing aliens will not be permitted to file a joint return. However, if the District Director is reasonable satisfied that a resident alien and his spouse will be eligible to file a joint return at the normal close of their taxable period for which the return is made, he may permit the filing of a joint return if (1) the departing alien and his spouse are both required to file a return on Form 1040C for the period ending with the intended date of departure, or (2) the departing alien is permitted to file a return on Form 1040D and the taxable year of his spouse is not terminated.

.07 The tax liability of the spouses making such a joint return is joint and several, and consequently the entire tax on such return should be paid or security therefor furnished prior to the issuance of a Certificate of Compliance. The spouse of the departing alien should sign the joint return or authorize the departing alien to affix such spouse's signature.

SEC. 5. REPRESENTATIVES OF FOREIGN GOVERNMENTS.

.01 Representatives of foreign governments bearing diplomatic passports, whether accredited to the United States or other countries, and members of their households, shall not be examined as to their income tax liability and shall be permitted to depart from the United States or any of its possessions without obtaining a Certificate of Compliance. If a foreign government does not issue diplomatic passports but merely indicates on passports issued to its diplomatic service the diplomatic status of the bearer in the service, such passports are considered as diplomatic passports for Federal income tax purposes.

.02 This courtesy is further extended to the servant of a foreign representative when he accompanies upon departure any person bearing a diplomatic passport. If the servant does not accompany such representative upon his departure from this country, the servant may obtain a Certificate of Compliance without an examination provided he furnishes a letter from the chief of the mission concerned certifying that no tax is due and that the name of the servant appears on the `White List,' a list of employees of diplomatic missions. See Rev. Rul. 54-551, C.B. 1954-2, 234.

SEC. 6. FOREIGN NEWSPAPER CORRESPONDENTS AND RESIDENT ALIEN EMPLOYEES.

Certificates of Compliance may be issued to certain classes of aliens who are required to leave the United States or any possession of the United States from time to time, such as alien foreign newspaper correspondents, resident alien employees of domestic corporations and partnerships, and resident alien employees, owners, and partners of established domestic businesses or professional enterprises, without payment of the tax or appointment of an attorney-in-fact or posting of security, provided the District Director is satisfied that collection of the tax will not be jeopardized. In the case of a resident alien employee, a bona fide promise by his employer to pay the tax if the alien employee defaults may be considered as satisfactory evidence of collectibility. District Directors should consider the anticipated duration of absence from the United States, the due date of the income tax return, the payment of income tax or installment thereof already due, and the extent of the business interest of the taxpayer in the United States and its possessions. In such cases the alien should be required to submit a written statement of the facts warranting such treatment. This statement should be attached to the Form 1040C which he executes.

SEC. 7. ALIENS IN TRANSIT THROUGH THE UNITED STATES.

Aliens in transit through the United States or any of its possessions without stopover privileges, who solely because of transportation difficulties in making continuing connections are obliged to remain therein for a period not to exceed 5 days in any one trip, may depart without obtaining a Certificate of Compliance unless there is evidence available indicating taxable income. Aliens in transit between the continental United States and the Territory of Alaska or Hawaii without stopover privileges in a foreign country are not required to obtain Certificates of Compliance.

SEC. 8. ALIEN COMMUTERS.

Alien residents of Canada and Mexico who commute to the United States at frequent intervals for the purpose of employment and whose wages are subject to the withholding of tax will ordinarily not be required to obtain a Certificate of Compliance.

SEC. 9. CITIZENS OF THE UNITED STATES.

No citizen of the United States or citizen of a possession of the United States, whether resident or nonresident as to the United States, is required to secure a Certificate of Compliance before departing from the United States or its possessions.

SEC. 10. PERIOD DURING WHICH CERTIFICATE MAY BE ISSUED.

Certificates of Compliance may be issued within a period of 30 days prior to the alien's departure, provided the District Director is satisfied that all taxable income has been reported.

SEC. 11. PREPARATION OF RETURNS.

Departing aliens and their authorized representatives should not only be permitted but also encouraged to prepare returns on Forms 1040C and 1040D where, in the opinion of the District Director, they are qualified to do so. In such cases, it may or may not be necessary for departing aliens to appear in the District Director's Office, depending on the facts in each case.

SEC. 12. EFFECT ON OTHER DOCUMENTS.

.01. This Revenue Ruling supersedes Mimeograph No. 4633, C.B. 1937-2, 149.

.02 Any other internal management documents, the provisions of which are inconsistent or in conflict with the provisions of this Revenue Ruling are hereby amended or superseded accordingly.

                            Form 2063 (3-55)