H1-B and accidental 1099

unionjack · Post by **unionjack** » Wed Mar 19, 2008 1:36 am

I'm Canadian and worked in US from 2004-2006 on an H1-B. In 2005, I attended a series of work-related workshops for which I received money (less than $1000) from the organization that sponsored the workshops (not my H1B employer.) It didn't occur to me at the time that this was an "employment" thing since going to work-related conferences was part of the job and we didn't normally get paid by the conference organizers for doing so. This was an unusual thing. Now I've read that it was a violation of H1B. I was issued a 1099 (non-employer) for the payment. I declared it on my 1040 for 2005 and paid taxes. I now live back in Canada.
My questions are:

1) does this have consequences if I want to return to the US on a new H1B in the next year or two? (is it a serious violation?)
2) If I were to apply for US permanent residency in the future, would it have consequences?
3) does it affect my ability to travel to the US as a tourist for vacations?
4) Is there any way I can FIX this? (I would gladly give the money back, but my guess is it's probably too late to try to give it back??)

Thanks for any help.

nelsona · Post by **nelsona** » Wed Mar 19, 2008 10:37 am

Well, you di violate your H1, but there is nothing that can or needs to be done now. it would have been worse to not declare the income.

There will be no repercussions at this point, especially that you are no longer in US, and any future GC sponsorship would not likley involve any information from 2005. If it had, you would be able to explain it as you just did.

Just be careful in future.

unionjack · Post by **unionjack** » Wed Mar 19, 2008 2:36 pm

Do you know what the penalty would normally be for this kind of violation? A fine? deportation? Or could it affect eligibility for future travel to US? (I know under some circumstances being in US 'out of status' can get you 'banned' for 5 years.)

nelsona · Post by **nelsona** » Wed Mar 19, 2008 4:36 pm

The answer to your 4 original questions are NO.

nelsona · Post by **nelsona** » Wed Mar 19, 2008 4:37 pm

For any legal opinion, you would need to speak to.... I thik you know.

unionjack · Post by **unionjack** » Wed Mar 19, 2008 6:18 pm

Thanks for the replies. And also the great forum.

worryfreeinvestor · Post by **worryfreeinvestor** » Mon Mar 31, 2008 10:22 pm

I am Canadian working in U.S. for 3 years on TN1 and then H1-B visa. Earn a salary in U.S. on visa. Also earn trivial income from other U.S. parties doing the same thing (writing articles on my subject of expertise). This amounts to less than 1% of my salary income. These parties issue 1099s. I have decided to report the income to IRS and pay tax even though I do not have a visa that allows me to earn such income. I have never been "busted".

My thinking is that if someone issued me a 1099 on contract/consulting, the IRS already knows about if from the payer's side, so I am at greater risk of IRS questioning if I do not report it than I am of CIS questioning if I do not report it and try to hide the income. I do not think that the CIS and IRS have consistently open channels to each other.

nelsona · Post by **nelsona** » Tue Apr 01, 2008 4:58 am

At some point in the I-485 process, CIS will look at your tax return, so there is that.

And yes, it is much better to report your illegal income (it is), than not.