Departing taxpayer

[jake1]

I have a taxpayer that is a resident alien and will be leaving the country soon permanently. I see that a 1040-C will need to be filled out, but is there an equivalent form for the 1120s? Amy help would be greatly appreciated! Thank you in advance!

[sjrcpa]

The S Corporation still exists no matter where the shareholders live.

But, if the client is giving up his green card, then he is no longer an eligible S Corporation shareholder and then you have a C Corporation.

[BobKamman]

I would really be worried about those 80,000 armed IRS agents at every US airport, checking for 1040-C's before TSA checks for explosives.  Just kidding.  That form is just another joke, like the 2063.  Your clients have better things to do than waste their time at an IRS office, where no one will know what they're looking at anyway.  

[sjrcpa]

I once got a frantic call from the owner of a corporation. One of their employees was at the US-Canada border and needed proof that the corporate tax return had been filed before the employee could cross. That was at least 15 years ago. It was very strange.

[BobKamman]

I once had an American client who worked for a  publicly-traded American company.  He married a Russian, and they lived in a third country.  She went for her citizenship interview while visiting the US, and she would only qualify if she could show her husband worked for a US-owned company. Of course with publicly-traded companies, no one knows the nationality of the majority of shareowners.  I think they talked their way out of it. 

In your example, it was the employee trying to enter the US who was denied entry, right?  That's why this whole "sailing permit" business from a century ago is so absurd.  The US has no exit controls.  The airline won't let you board unless you have a passport and visa for your destination, but no one from the US government checks you out.  That's one reason we don't really know how many people have overstayed their visa (a civil violation, not a crime).  

[sjrcpa]

"it was the employee trying to enter the US who was denied entry, right?"

Yes