US taxes for Canadian on L1 for <183 days?

[jaimegu]

Hi, after calling IRS and CRA I still have this doubt so I turned to Internet forums, and this one seems to be the best by far. Here is my question.
I work for a Canadian branch of a global company (headquarters in Sweden). This company also has offices in USA. Due to the nature of this job I have to provide services to customers in many countries, sometimes onsite.
In 2010 I stayed for 170 days in USA and I was told by the company that I had to pay taxes there, so I used the accountants provided by the company (painful process!!!)

For 2011, I stayed for 106 days, and I'm being asked to repeat the process.
(In all cases trips are scattered all year so no 183 days on any 365 period).

These are the facts:
Visa: L1.
My salary has always been paid by the Canadian company. I am not in any US payroll, neither did I any business in USA.
My family, house, car, bank account, driver's license are all in Canada.
I have never applied for Green card
I do not pass the substantial presence test.

Questions:
1. Do I have to pay taxes in USA?
2. In case I don't need to pay US taxes, Do I need to send something to IRS? What?

[nelsona]

calling IRS amnd CRA were your first and second mistakes. Let's hope there aren't any more.

1. Since you are on L1, this means that your firm has a permanent establishment in US, so, at a minimum, your wages while in US are taxable in US. You would file a 1040NR reporting this income,and a state income tax as well. If you were merely visting clients, you would not have or need an L12, you would enter on B1 or even TN, as your firm would not have a fixed base in US.

[jaimegu]

Thanks for your answer...
I wonder why you said it was two mistakes calling them?

[nelsona]

the IRS and to a lesser extent CRA are notorious at NEVER giving the right or consistent answer.