I have a general question regarding starting GC processing. I have worked in US for about 3 1/2 years now. During my first year (Aug 2004), I worked thru my Canadian company on TN in such a way that my company was paid directly by my US employer and hence I didn't file any tax during that time as I never received direct compensation from a US employer. The TN was although issued in my name but no W2 or 1099 was ever issued directly to me but to my Canadian company's name. For the last 2 1/2 years or so, I am, however, working under w2 and paying regular taxes (taxes paid regularly from Oct 05 - Current). The unpaid US tax period is between Aug 04 - Sept 05. Now if I apply for GC at this time, would the record of not paying tax during initial years would show up? Keep in mind, that there is no record whatso ever of direct payment in my name as the the payment was made thru 1099 to my Canadian company and was deposited in company's Canadian corporate account and the salary was given to me by the Canadian company for which I paid full taxes back in Canada. Should I show my employment under my Canadian company instead of under my sponsoring US company during that initial period? Any feedback would be appreciated.
TN to GC Processing
- Thread starter sabih
- Start date
nelsona
Registered Users (C)
The need to pay US tax for the period you were being paid as a contrator will be determined by your RESIDENCE during that period.
If you lived in US, and had given up Cdn residency, then you should have been paying US tax on this income. At least the wages you paid yourself.
If you lived in canada throughout this time, it is possible that this income would only need to be reported in canada, but then why would you have had a TN; a B1 would have been sufficient.
So, it sounds like you underreported in US for the period. Does this need to be part of your GC application? Well you need to prove 2 things: that you were always in statsu while in US, and that you paid taxes. CIS will know that you had a TN.
If you lived in US, and had given up Cdn residency, then you should have been paying US tax on this income. At least the wages you paid yourself.
If you lived in canada throughout this time, it is possible that this income would only need to be reported in canada, but then why would you have had a TN; a B1 would have been sufficient.
So, it sounds like you underreported in US for the period. Does this need to be part of your GC application? Well you need to prove 2 things: that you were always in statsu while in US, and that you paid taxes. CIS will know that you had a TN.
Thanks for your reply. Just wondering if just getting a TN automatically accounts for your presence in US. For instance, a person could have worked on TN for a couple of weeks and then went back to Canada and worked remotely for the same client hence not liable to pay taxes. Getting a TN is much more easier than any other visa. If that's not a valid argument then is there a way to undo the tax issues and pay the arrears now? How would it be determined how much tax to be paid?
Last edited by a moderator:
Thanks alot. Here is the reply of an immigration lawyer for the same query:
"TNs can either be employees of their U.S. Petitioner, in which case they receive a W-2 from that employer and must pay taxes on that income, OR they are employees of a Canadian Company that has contracted their services to a U.S. Employer that is TN Petitioner, in which case they receive no W-2 and are not required to pay U.S. taxes on that income. Both scenarios are common with TNs.
In this case, for the period 08/2004-09/2005 your employer was the Canadian company, and we would list that information on the 9089 but we would also include in the job duties for that past experience the info that he was contracted to work at that U.S. site."
"TNs can either be employees of their U.S. Petitioner, in which case they receive a W-2 from that employer and must pay taxes on that income, OR they are employees of a Canadian Company that has contracted their services to a U.S. Employer that is TN Petitioner, in which case they receive no W-2 and are not required to pay U.S. taxes on that income. Both scenarios are common with TNs.
In this case, for the period 08/2004-09/2005 your employer was the Canadian company, and we would list that information on the 9089 but we would also include in the job duties for that past experience the info that he was contracted to work at that U.S. site."
nelsona
Registered Users (C)
The only thing I would re-iterate is that regardless of who paid you, your residence will also determine if you should pay tax in US. And residence is determined by number of days present in US, as well as whether you maintained a home in the other country.
You have never sais what your living arrangemnets were/are in canada. This DOES make a difference. this was the FIRST thing I said at the beginning of this thread:
And, all states that have income tax also require that you pay tax in the state where you worked, even if you did not live there, and the company was not based there.
An example of this would be hockey players who have to file tax returns and pay tax in every state that their team played in during the year, based on the numbr of games played in each state. they are employees of a Cdn company, but work in the US. your case is even stronger for paying US tax, since you actually were present in the US for most of the year.
This should not result in any extra tax on your part, since you did pay in canada. The problem is that US may not recognize the tax you paid in canada, since they could say that canada didn't have the right to tax it first, since you were living in US and were working in US.
You have never sais what your living arrangemnets were/are in canada. This DOES make a difference. this was the FIRST thing I said at the beginning of this thread:
And, all states that have income tax also require that you pay tax in the state where you worked, even if you did not live there, and the company was not based there.
An example of this would be hockey players who have to file tax returns and pay tax in every state that their team played in during the year, based on the numbr of games played in each state. they are employees of a Cdn company, but work in the US. your case is even stronger for paying US tax, since you actually were present in the US for most of the year.
This should not result in any extra tax on your part, since you did pay in canada. The problem is that US may not recognize the tax you paid in canada, since they could say that canada didn't have the right to tax it first, since you were living in US and were working in US.
Last edited by a moderator:
During that time, I maintained residence of Canada along with Canadian car etc. and frequenctly went back and forth. Just wondering if the above mentioned case applies for the taxation by IRS collection or for the USCIS to approve the GC process, or both?
Last edited by a moderator: