Canadian resident's Website Income from US companies

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nelsona
Posts: 18359
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

I would only say that "best" advice and "best sounding" advice are not always the same. A protective return should not worry you however.

And take note of ND's point about state nexus. The states, not handcuffed by treaty, and hungry for revenue because of dwindling sales tax due to interstate on-line selling, are very aggressive on the nexus front.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
JGCA
Posts: 754
Joined: Thu Nov 18, 2010 3:05 pm
Location: Montreal, QC Canada

Post by JGCA »

I agree with Nelsona that it can be interpreted by IRS staff as either no or yes on the PE question, in my case I have clients in similar situations never entering the US and doing work from Canada online some even have servers in the US. We take the position under the new rules of physical presence in the US over any 365 day perioods that we do NOT have a PE and we file protective 1120F with 8833 statements stating our position . In this case the time clock starts to tick on our assessment timeframe and if need be and we are asked to file then we file and claim all the deductions and tax credits we would be entitked to, had we not files then we would be barred from claiming any deductions and taxed on the gross receipts.
So I would file a protective return it should be done right away to start the clock ticking away.
JG
xiaoluoj
Posts: 2
Joined: Thu Sep 25, 2014 5:10 am

Post by xiaoluoj »

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xiaoluoj
Posts: 2
Joined: Thu Sep 25, 2014 5:10 am

Post by xiaoluoj »

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