Rev. Proc. 60-35

SECTION 1. PURPOSE.

The purpose of this Revenue Procedure is to provide additional guidelines for simplifying procedures for obtaining Certificates of Compliance by certain aliens departing from the United States and its possessions.

SEC. 2. BACKGROUND.

Revenue Ruling 55-468, C.B. 1955-2, 501, as amplified by Revenue Ruling 58-7, C.B. 1958-1, 497, established uniform procedures for the clearance of aliens departing from the United States or its possessions and for the issuance of Certificates of Compliance with the Internal Revenue Laws.

SEC. 3. NONPERSONAL APPEARANCE IN CERTAIN CASES.

Each member of a group of nonresident aliens having no taxable income from United States sources will be permitted to file a Form 2063, U.S. Departing Alien Income Tax Statement, and obtain a Certificate of Compliance without personal appearance in the district office of the Internal Revenue Service. This may be accomplished by correspondence or by means of a messenger or other representative for the entire group. Generally, this procedure will be limited to those groups of nonresident aliens that are sponsored by governmental agencies, educational institutions, foundations, trade associations, and other similar organizations. Quantities of Form 2063 will be furnished for this purpose upon request of these organizations or other authorized representatives of the alien groups.

SEC. 4. CLEARANCE FOR ENTIRE TAXABLE YEAR.

.01 Certain information in additional to that required by Form 1040C, U.S. Departing Alien Income Tax Return, must be obtained in the case of a departing alien who wishes to establish that his departure will not result in jeopardy and, accordingly, his taxable period should not be terminated. Therefore, in appropriate cases the following information should be shown on page two of Form 1040C:

1. Are your wife and children (if any) remaining in the United States?

o Yes

o No

2. Show the approximate value and location in the United States of the property held by you.

a. Real property-- $ _ _ ; _ _ $ _ _ ; _ _

b. Stocks and bonds-- $ _ _ ; _ _

c. Cash-- $ _ _ ; _ _

d. Other (Specify)--$ _ _ ; _ _

3. If you will not return before (a) the due date for filing a final United States income tax return for the current year, or (b) the due date for paying the tax for the preceding year, what arrangements have you made to have your final income tax return for the year filed and the tax paid?

_ _

4. Is your employer willing to furnish a letter guaranteeing that the tax will be paid? If answer is `yes,' please attach the letter.

o Yes

o No

Normally, the departing alien will be required personally to appear before a District Director for the purpose of executing the modified Form 1040C, as here indicated.

.02 This procedure is applicable to an alien (other than a nonresident alien with no taxable income) who intends to return to the United States and who has filed all required returns for prior years and paid all tax due thereon. In addition, where the period for filing the return for the preceding year has not expired, this return must also be filed before departure, although payment of the tax shown thereon will not be required before the normal due date. In the absence of any information indicating jeopardy, the alien who has satisfied his prior years' tax obligations and indicates ties and connections such as business, employment, property or family in the United States or its possessions, will not have his taxable period terminated. The alien will be issued the Certificate of Compliance on the duplicate copy of Form 1040C completed with the deletion of the words `as of the intended date of departure' and the addition of the words `Annual' and `For Taxable Year Ended _ _ .' with the proper date inserted.

.03 When issued in accordance with the foregoing, this special Certificate of Compliance will be effective for all departures in the taxable year and the alien will not ordinarily be required to appear again before the District Director during the taxable year unless the District Director has reason to believe that the collection of the tax may be in jeopardy. An example of the application of this procedure would be a nonresident alien who at periodic intervals during the year comes to the United States for brief stays to attend meetings of a corporation board of directors for which he receives directors fees. Before the alien's first departure in the year, he would file Form 1040C. If the District Director determines that the alien's departure will not result in jeopardy, his taxable period need not be terminated. Thereupon, he will be issued a Certificate of Compliance applicable to all departures during the taxable year.

.04 Section 1.6851-2 of the Income Tax Regulations restricts the issuance of the Certificate of Compliance effective for all departures to the Certificate issued in conjunction with Form 1040C. Therefore, the procedure prescribed herein is not applicable to nonresident aliens having no taxable income who must file Form 2063 on each departure from the United States in order to obtain a Certificate of Compliance applicable only to that particular departure.

.05 The Certificate of Compliance on Form 1040C issued to the departing alien whose taxable period is not terminated will be modified as indicated in section 4.02 above until Form 1040C is next reprinted. At that time the Certificate of Compliance on the form will be revised to provide for its use in both termination and nontermination cases. The certificate will be used without modification in cases where the taxable year is terminated.

.06 The provisions of section 6 of Revenue Ruling 55-468, C.B. 1955-2, 501, at 503, are inconsistent with the provisions of section 4 of this Revenue Procedure and compliance with such requirements is no longer necessary.

SEC. 5. REFUND OF TAX BY EMPLOYERS.

.01 Revenue Procedure 57-13, C.B. 1957-1, 741, prescribes procedures for the refunding by employers, in certain cases, of tax withheld direct to the nonresident alien employee at the time of departure from the United States. Since that procedure is seldom used, this reference is made to acquaint those who are unaware of it in order that it will be used to the maximum extent in applicable cases. See section 5.02 below.

.02 The conditions under which the refund may be made to the nonresident alien are these: (1) his employer has not yet paid the withheld tax to the Government, (2) his employer agrees to make a refund of tax upon authorization from a District Director of Internal Revenue, and (3) he obtains authorization for such refund from the official. To obtain a refund before departure, the following steps should be followed:

1. The employer should prepare and sign an agreement as shown on Exhibit A of Revenue Procedure 57-13, supra , at 743.

2. Exhibit A should be taken to the District Director of Internal Revenue, who may then prepare Exhibit B of Revenue Procedure 57-13, supra , at 744.

3. Exhibit B, which states the amount of refund authorized, should be taken to the employer. The employer may now make the refund in the amount authorized.

SEC. 6. EFFECT ON OTHER DOCUMENTS.

Revenue Ruling 55-468, C.B. 1955-2, 501, is modified to the extent of the provisions in this Revenue Procedure.