Travel Expenses Question

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
yevdan
Posts: 9
Joined: Fri May 11, 2007 3:17 pm
Location: Thornhill ON

Travel Expenses Question

Post by yevdan »

I am Canadian and my consulting business is incorporated in Ontario. I am doing the vast majority of the work for a single US client, operating from my home office in Canada.
Client pays me on the hourly basis.
My client requested and I submitted W-8BEN form, so I am considered as a foreign company and supposedly will not have any involvement with IRS.
Occasionally I need to travel to US for some job related meetings with the client.
My client agreed to compensate my travel expenses on per-diem basis (lodging and meals) plus airfare, car rental and gas.
But at the same time my client expressed the concern in this regard.
He is saying that If I claim the travel expenses that means I am doing work in US and it can cause some problems to them while being audited by IRS.

Do I really need to stay 100% of a time in Canada in order to keep away from IRS ? And actually I am traveling as an employee of my corporation and client reimburse my company for this. Does it make any difference ?
I would really appreciate if somebody can help me with this issue.

Thank you
Post Reply