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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 114019
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I am involved in facilitating deals where I will be earning

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I am involved in facilitating deals where I will be earning fees/commissions in large sums. The buyer and seller, or one of the two may be US residents, but I am not. I have two questions:
1. Will the fees be taxable when received by me and transferred to an account set-up for these funds.
2. Will the Paymaster be responsible for getting the funds cleared from the authorities, specially in view of the Patriot Act
Yes, if you are earning the funds in the US then they would be taxable in the US. The way most people handle these transactions is to set up a limited liability company in the US and a US bank account and take the funds into that account. The foreign resident then files a foreign tax return here in the US for any money earned while in the US. The Paymaster is not generally responsible for having the funds cleared, that is up to you receiving the funds to have an account set up to properly receive the funds and this is where most foreign nationals hire a local attorney to set up their LLC and to get their payment accounts set up.


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Customer: replied 6 years ago.
Thanks. But the Paymaster asked me for a W8 to show I was not resident.

You also mentioned "any money earned while in the US", but I will not be in the US. My efforts are all outide the US.
If you are not in the US and not earning money through efforts in the US, then there is no need for payments to any US accounts (I misunderstood that you were in the US or conducting business in the US). A W-8 form is to certify your foreign status to allow them to send payments out of the country and deposit them in a foreign account. This covers the paymaster from making payments to that foreign account.
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