Dear CP Gurus,
This is a really long one - but please bear with me.
I think I am caught up in an income tax defaulter type of situation – for no reason.
When I was working for my x-company in Chennai, I was sent to Minnesota on an assignment with L1-Visa. At that time, the policy for compensation was as stated below:
1) If sent on B1-visa, you continue to be on India-payroll and will receive Indian salary and you get a daily allowance of $ xx/day.
2) If sent on L1-visa, you resign from the Indian-Company; the US Company enrolls you on their payroll. You are liable to pay taxes. When you return to India, you resign from the US-Company and are re-enrolled on the India- payroll.
In my case, I was sent for 3 months, but the offer read "1 year - compensation xxxxx/year - liable to pay taxes in US and so on".
Reached US and got my SSN done in Minnesota. Everything was perfect until the day I was supposed to be enrolled on the US-payroll.
To my surprise, I was told that the Indian-Company is revising their policy. They revised the 2nd type of compensation to below:
2) If sent on L1 for less than 6 months, then it will be treated like B1.
3) If sent on L1 for more than 6 months, then it is same as before for L1.
So as a result, I entered US in Sept 2000, with a offer letter that read "compensation xxxxx/year - liable to pay taxes in US".
But in reality, I was paid daily allowance of xx/day and I continued to be on India-payroll.
All this happened with oral communication and we didn't receive a single document from the Indian-Company. I returned to India in Dec 2000, left the x-company in Jan 2001, and returned to US with a different company on H1 in Feb 2001.
Now during the interview if I am asked, when did you come to US? What should I say? Sept2000 or Feb2001?
Because I was not on US payroll and did not receive W2-Form, I haven't paid the taxes for 2000. Was I supposed to pay taxes?
I am trying to get a document from my x-company (Indian) that supports the facts.
My X-company is quite cooperative and has asked me to send the draft of the document I need.
What do you think I should mention on this document so that it will contain all the minute details that the Consular would look for?
Also, if anyone can send me a draft (or template if anyone ran in to the same situation), I would really appreciate it.
Thanks for your patience and time.
Shriram
This is a really long one - but please bear with me.
I think I am caught up in an income tax defaulter type of situation – for no reason.
When I was working for my x-company in Chennai, I was sent to Minnesota on an assignment with L1-Visa. At that time, the policy for compensation was as stated below:
1) If sent on B1-visa, you continue to be on India-payroll and will receive Indian salary and you get a daily allowance of $ xx/day.
2) If sent on L1-visa, you resign from the Indian-Company; the US Company enrolls you on their payroll. You are liable to pay taxes. When you return to India, you resign from the US-Company and are re-enrolled on the India- payroll.
In my case, I was sent for 3 months, but the offer read "1 year - compensation xxxxx/year - liable to pay taxes in US and so on".
Reached US and got my SSN done in Minnesota. Everything was perfect until the day I was supposed to be enrolled on the US-payroll.
To my surprise, I was told that the Indian-Company is revising their policy. They revised the 2nd type of compensation to below:
2) If sent on L1 for less than 6 months, then it will be treated like B1.
3) If sent on L1 for more than 6 months, then it is same as before for L1.
So as a result, I entered US in Sept 2000, with a offer letter that read "compensation xxxxx/year - liable to pay taxes in US".
But in reality, I was paid daily allowance of xx/day and I continued to be on India-payroll.
All this happened with oral communication and we didn't receive a single document from the Indian-Company. I returned to India in Dec 2000, left the x-company in Jan 2001, and returned to US with a different company on H1 in Feb 2001.
Now during the interview if I am asked, when did you come to US? What should I say? Sept2000 or Feb2001?
Because I was not on US payroll and did not receive W2-Form, I haven't paid the taxes for 2000. Was I supposed to pay taxes?
I am trying to get a document from my x-company (Indian) that supports the facts.
My X-company is quite cooperative and has asked me to send the draft of the document I need.
What do you think I should mention on this document so that it will contain all the minute details that the Consular would look for?
Also, if anyone can send me a draft (or template if anyone ran in to the same situation), I would really appreciate it.
Thanks for your patience and time.
Shriram