DAVID
I thought that a TN visa could only be issued to an individual and
that having the US employer pay a Canadian services company was not
permitted under the terms of a TN visa - yet your response below
indicates one can work for a US corp. and have fees paid to a Canadian
corp.
I am confused
Thanks
B XXXXXl
You just wrote:
QUESTION:
Hi
I have a TN visa and I am working on a 6-month contract in US. The US
company who has hired me is paying my incorporated Canadian company.
I am not receiving any money directly from the US company in my
personal
name.
My question is:
Do I need to file
1. Personal US Tax Return
2. My company's Corporate US Tax Return
Thanks
===============================
david ingram replies:
You are working in the USA and being paid by your company for work
performed
in the USA.
You need to file a US 1040 or 1040NR.
You need a US Social Security Number which you can get by going to a
local
Social Security Office and filling in form SS-5.
Instructions and an application for a US SSN (Form SS-5) can be found
at:
http://www.irs.gov/pub/irs-pdf/fss5.pdf
You should also file a US 1120F corporate return because your company
is
doing work in the USA and has an employee in the USA.
If your company has Canadian income as well, the 1120F will show the
US
income and claim proportional expenses unless there is a clear
demarcation
between US and Canadian Expenses.
=========================================
William L. Sklar
513 Roselawn Avenue, Toronto, ON, Canada M5N 1K2
416-410-1215 fax 416-482-6134
============================================================
david ingram replies:
Until a week ago, I was absolutely convinced that an individual could
not work for a Canadian Company he owned under a TN. I actually have
it on tape from three INS (at the time) agents and a superior
representative from Washington DC.
However, it appears that I ixtrapolated the answer to my question past
the limits of the question.
It is possible for you to work for a Canadian Company and get a TN
through the Canadian Company to work in the US. Happens all the time
when a Canadian Company wants to send a Canadian down to the US for a
short period of time.
My question was could "I" own my own Canadian Comapny and get a TN
that way. I was given a resounding "NO" by all four INS
representatives.
I incorrectly interpreted that to mean that the US employer could not
pay a One Man company in Canada. As a consequence, I have told at
least a dozen people that if they get a TN from a US employer, the US
employer has to pay them and can not pay their Canadian Corporation.
I was thinking about it the other day and it dawned on me that I might
be wrong because paying the Canadian corporation was similar to an US
resident alien or person being paid as a one person California LLC
(okay) or even a Subchapter "S".
So I called Ruben Briones who used to be the TC/TN officer at
Vancouver Airport.
Ruben told me that the US employer could pay the Canadian Corporation
if he was the only shareholder because it was "him".
Interestingly, NO ONE had challenged my printed comments in the past
when I told people they could not be paid as a corporation. AND, you
obviously remember them. So Ingram learns something new.
Rubens telephone number is 1-360-332-1398 and his email is :
rbriones at axionet.com,
Up until a short while ago, Ruben has only looked after people
referred to him by immigration practitioners and was very specific
about being in the newsletter. I am hono(u)red that he will now allow
is name and contact information to be mentioned here.
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