I have a client who worked in the US for several years. In July, 2007, he sold his home and moved back to England. He has retirement income, IRA distributions, dividends and interest from US sources. Does he have to file dual status in 2007? Instructions for 1040NR say if he failed to file Form 8854 and notify the Department of State that he was terminating his long term residency, file 1040. Comments appreciated.