Yes, this is problematic not getting the sailing permit before departure. My advice is to have your friend file his taxes ASAP and pay any tax due immediately to avoid any further consequences. Make sure his taxes are paid and up to date on his 2023 return before he visits the US. It is wise for his tax professional to include a statement saying that your friend forgot to obtain a sailing permit but his taxes are paid and up to date with this return. Make sure this is the case before he returns for a holiday.
As far as filing a return for 2024, if he earned or received income between Jan 1 -9, he would need to file a return. Rather it is a resident return or non resident return depends on the terms Substantial Presence Test and is determined by the following formula.
- 31 days during the current year, and
- 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:
- All the days you were present in the current year, and
- 1/3 of the days you were present in the first year before the current year, and
- 1/6 of the days you were present in the second year before the current year.
If he is a resident under the formula, then it is possible he would need to file a 1040 resident return and declare his worldwide income since he did not apply for the sailing permit. When determining the 31-day period, you would need to to count the 9 days in January plus the duration of his vacation stay. However if he earned or received income in Jan and is under the 31 day stipulation, he would file a 1040 NR return. turbo Tax does not prepare 1040 NR returns but our affiliate at Sprint Tax does.
It may be possible for him to get a sailing permit during his vacation stay. He may wish to visit the IRS to see what steps need to be taken before his departure back to his country. I would suggest he has a copy of his 2023 tax return to prove he has paid all of his taxes.
If his tax preparer is an enrolled Agent or CPA, he/she should accompany him to the IRS for representation purposes. If he does this, i would suggest that he visit the IRS immediately on his return to the US.
If he decides to do this, he needs to have documents and receipts that are included in the instructions for 1040 C. Look at page 4 in the instructions link below for a list of these requirements.
Here are some references that may prove helpful to you and your friend.
Instructions for Form 1040 C
Sailing permit
Alien Tax Clearance
[Edited 03/19/22|3:15 pm PST]
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