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Author Topic: Working While Travelling  (Read 10451 times)

Wendy

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Re: Working While Travelling
« Reply #30 on: August 22, 2012, 12:13:10 PM »
If you are working for a Canadian company, being paid in Canadian dollars deposited in a Canadian bank, and are visiting this country but aren't a permanent US resident, I don't think you legally OR morally owe US income taxes. As an accountant, I find this an interesting discussion and I'm doing some research to see if there is a definitive answer. More later.
 
Wendy
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Tom

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Re: Working While Travelling
« Reply #31 on: August 22, 2012, 12:59:17 PM »
Quote from: Wendy
If you are working for a Canadian company, being paid in Canadian dollars deposited in a Canadian bank, and are visiting this country...

That would appear to be the OP's case, although I didn't realize that on first reading. Bottom line is that, provided he's not 'employed' in the U.S., he'll be fine. Been there done that (legally) for an extended time.

Quote
... aren't a permanent US resident ....

Wrong term; In my first response I linked to IRS Publication 519, U.S. Tax Guide for aliens (includes resident and non-resident aliens, both of which require the paying of taxes if working in the U.S.). 'Resident alien' and 'green card holder' are equivalent terms used for a 'permanent resident', but folks do not need to be permanent residents (or resident aliens or green card holders) to legally work and pay taxes in the U.S.

When we talk about resident/non-resident aliens, immigrant and non-immigrant status, they're determined by the US Citizenship and Immigration Service (previously the INS, Immigration and Naturalization Service). Each status has it's own process that must be followed. The previously linked UCSIS web site spells much of this stuff out.

IOW residency and immigration status are defined/controlled by a different agency than the IRS, so both must be researched together. I've been around both loops numerous times, personally and for family members and employees, with and without legal (immigration attorneys) and tax pro help, and have lots of horror stories for each scenario.

Good luck with your research. If I can share the benefit of having been in various residence/immigrant states and various tax statuses, let me know.
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Ken & Sheila

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Re: Working While Travelling
« Reply #32 on: August 22, 2012, 05:50:58 PM »
>>As Bernie says, the IRS is not noted for either moral positions, compassion or logic.  They pick a phrase from the tax code that they feel applies and then stick to it through hell or high water, despite any logical arguments to the contrary.<<

But they can be defeated in tax court - been there, done that - one case for a very large amount of taxes, when you win its fun but this case took 2 years to resolve - that part was not fun at all.

ken
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Gary RV_Wizard

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Re: Working While Travelling
« Reply #33 on: August 22, 2012, 07:12:21 PM »
I won a substantial one against the IRS too, and it didn't even have to go to Tax Court. I think I surprised somebody when I quoted their own regs back to them chapter and verse. And cited a Supreme Court ruling that pertained as well. Still took many months, though, and lots of formal, written documents. You have to be able to bureaucratese as well as they do.  8)
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Wendy

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Re: Working While Travelling
« Reply #34 on: August 22, 2012, 07:36:18 PM »
I've won twice vs. IRS and never had to go to court. It's not that hard if you have your paperwork all in order and have checked out the appropriate regs (boring reading, to be sure) AND ARE POLITE AND RESPECTFUL to the auditor, who is probably an underpaid GS-5 federal employee.
 
Wendy
Wendy, Mike, and Gordon
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SeilerBird

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Re: Working While Travelling
« Reply #35 on: August 22, 2012, 07:38:08 PM »
I have dealt with the IRS in the past and I have been very impressed with their professional manner and with the help they gave me.
I would like to apologize to anyone I have not yet offended. Please be patient and I will get to you shortly.
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Tom

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Re: Working While Travelling
« Reply #36 on: August 22, 2012, 10:09:11 PM »
I prefer to have someone else represent me in front of the IRS, and happily pay for that.
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camperAL

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Re: Working While Travelling
« Reply #37 on: August 23, 2012, 01:45:22 AM »
Greetings,

Interesting take on this topic and a wide variety of opinions. I tend to agree with Gary and several others on their assessment. I hold multiple merchant certificates in several states so I can conduct business in those states. They simply state if you sell anything (even one item as a business) then you must collect sales tax. I then pay my federal tax when my accountant tallies up all of my items (and subtracts legal deductions).

To me it is black and white. Since the OP said he was only going to conduct business in Canada from his computer here, there should be no concern with filing anything. Otherwise anytime you made a business call while out of your state you would be liable and to me that is just stretching things too far. I agree the IRS might have other views.
CamperAL (Indiana)
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rogerskevin67

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Re: Working While Travelling
« Reply #38 on: January 10, 2013, 07:36:43 AM »
You may need to find a business tax attorney in order to completely answer your question. Chances are that you will owe money to the IRS or at least need to report to them if you are working with the US for that extended period of time.

Edit: Removed commercial link
« Last Edit: January 10, 2013, 08:30:41 AM by Ned »

JudyJB

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Re: Working While Travelling
« Reply #39 on: January 25, 2013, 08:32:45 PM »
I used to work for a consulting company located in a particular state and would travel on business, visiting customers at various sites and teaching seminars.  My employer paid me for this work, but I certainly was never required to pay taxes on this income in each state I had traveled to and/or taught in.  I used my employer's equipment and that employer set up my schedule.  This is pretty typical of every business person who travels to customer sites around the U.S. 

I am currently teaching online while traveling for a college in one state while maintaining a domicile in another state.  I access the college software through the internet and am supervised by a department head and academic dean located in the college's home state. I am assisted in my work by staff located at the college.  I am really only accessing my employer's systems and students remotely.  I do not really think that I am "working" in all of the 23 states I have driven through in 2012.  I cannot see how this is different from when I traveled to Scotland in 2008 and to the Eastern Mediterreanean and remoely accessed my class while on those vacation.

I will have to pay taxes in my domicile state for my social security and interest and other stuff, and I assume some portion for the part-time work I am doing for my employer in the other state.  I can't imagine that I am responsible for those other 21 states.  Otherwise, we would all be declaring income in every state where we checked our email while on business travel!

I think the difference might be in situations where someone is self-employed or working on a commission on sales or who produces a product, although my son is a sales manager earning a partial commision on sales to all 50 states, and he files only in the state in which he lives.  I will certainly ask this question this year of the person I am going to get to help me with my taxes. 
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