How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lane Your Own Question
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10138
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
1929974
Type Your Tax Question Here...
Lane is online now
A new question is answered every 9 seconds

My issue is that if I have a U.S. company and one partner in

Customer Question

Hi, my name is***** issue is that if I have a U.S. company and one partner in Canada, who will solely be working from Canada, is a Canadian citizen, and he has equity in the company, does he have to file the 83b election? He doesn't have a social security number
JA: Thanks. Can you give me any more details about your issue?
Customer: The employee (Andy) is receiving a restricted stock grant. ***** *****ves and works in Canada and is not a U.S. taxpayer, but he works for my U.S. company. If Andy was in the U.S. he'd have to file an 83b election and of course he'd be doing a U.S. tax return. Does Andy need to do any of that, being in Canada?
JA: OK got it. Last thing — Tax Professionals generally expect a deposit of about $32 to help with your type of question (you only pay if satisfied). Now I'm going to take you to a page to place a secure deposit with JustAnswer. Don't worry, this chat is saved. After that, we will finish helping you.
Submitted: 8 months ago.
Category: Tax
Expert:  Lane replied 8 months ago.

Hi - I can help here.

...

No, as long as the partner has no US filing requirements as either a tax resident (US Citizen, Green Card, or substantial presence test)

...

AND

...

Performs none of the services on US soil, (hence no US Source income) which would also generate a filing requirement

...

Then there's no need for an 83(b) election (as it addresses the taxation of the option for U.S. purposes)

...

Let me know if you have questions

...

Lane

...

...

I hold a JD (Juris Doctorate, a doctoral degree in the law), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial, Social Security & Medicare, estate, corporate & tax advice since 1986.

Expert:  Lane replied 8 months ago.

P.S. ... a best practice in this situation (for NRA contractors, employees AND partners) is to document their foreign status on Form W-8BEN(no Taxpayer Identification Number required) and the location of the services in their contracts. Compensation paid to nonresident (and resident alien) employees working abroad is not subject to FUTA either.