On Tue, 4 Dec 2007 13:24:28 -0800 (PST), SNeelakantan_C@zaplet.com
wrote:
>
>However, if I did work for company Z while I physically resided in US
>and company Z took the trouble of doing the paperwork to make payments
>to my Canadian sole proprietorship company instead of paying through a
>1099 (also perfectly legit) and I paid Canadian taxes, how would the
>IRS or USCIS know about it? Not that I intend to do this, but I am
>curious. There is no paper trail of the fact that I am doing any work
>for Z. My Canadian company performs services for Z, but isn't it a
>separate legal entity? Just trying to get the facts straight.
No paper trail? Sure there is. For one thing, Z is required to have
an I-9 on file for every employee. That would document that you
aren't authorized to work for them. Also, if you are a tax resident
in the US you are required to report ALL of your income, from any
source. Even though the money would get to you indirectly, you would
have to report it. So if you were audited by IRS, there's your paper
trail. If Z is audited by ICE, paper trail again.
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