I read Publication 515 and am unclear on how to treat a contractor that does
online work for a US based company. There are so many rulings on nexus and I
contacted the IRS and they couldn't give me a clear answer. They told me to
keep on reading Publication 515 and compare it to the forms.
I've been through an IRS audit and they aren't pretty. I don't think there is
effectively connected income because the individual are living over seas and
performing services overseas in an online environment for a US based company.
Is it still necessary to fill out a W-8? I'm leaning towards having the
international contractors fill out a W-8BEN. I can't seem to find a definite
answer.
Any advice would be appreciated.
JGabriel | Community Moderator |
11/16/2012 - 10:57 am
Try getting in touch with a local Small Business Development Center or SCORE, two of SBA's resource partners. They're located across the country and provide free business counseling and answers. Visit our local assistance guide to find your local SBA resource partners by entering your zip code. Another approach that may be useful is talking to a mentor who could offer you specific guidance. Good luck!
JGabriel | Community Moderator | 11/16/2012 - 10:57 am
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