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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 11821
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I am a non US citizen nor a resident.I have a dropshipping

Customer Question

I am a non US citizen nor a resident.
I have a dropshipping company and I pay my vendors with my credit card and end on the month I amazon pays me to my bank account,
In average amazon pays me $30,000 per month and $25,000 of it goes to pay off my credit card bills that I used to pay my wholesalers.
My question is can I have any issues with the IRS in any way?
Submitted: 1 year ago.
Category: Finance
Customer: replied 1 year ago.
My bank account is in the USA.
Expert:  Lane replied 1 year ago.
Hi,Yes, if you are using warehouses in the U.S. IRS will say that you have nexus (meaning that you have a business presence, therefore have U.S.source income).Let me know what questions you have from here
Expert:  Lane replied 1 year ago.
OK, I still don’t see you coming into the chat here … I’ll move us to “Question and Answer” mode … (We can still continue our discussion there, just not in real-time chat) … This way JustAnswer won’t charge you for for additional chat time and we can continue the dialogue. .Without more information, the best answer to your questions is, "It depends." Again, IRS will look for signs of your having a presence in the US. ..The source of income is determined under U.S. tax rules based on the type of income. Compensation for personal services, whether employment or selfemployment, is generally sourced where the services are performed, not where the income is paid. Therefore:• Income for services performed outside the United States is foreign-source and not subject to U.S. tax for a nonresident alien, even if paid by a U.S. employer or payer.• Income for services performed in the United States is U.S.-source income and subject to U.S. tax even if paid by a foreignemployer or payer..However, see this from IRS:Business Profits and Losses and Sales TransactionsAll profits or losses from U.S. sources that are from the operation of a business in the United States are effectively connected with a trade or business in the United States. For example, profit from the sale in the United States of inventory property purchased either in this country or in a foreign country is effectively connected trade or business income. A share of U.S. source profits or losses of a partnership that is engaged in a trade or business in the United States is also effectively connected with a trade or business in the United States..You'll have to tell me more about your buiness for me to answer your question completely..Let me know....Lane