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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15329
Experience:  15years with H & R Block. Divisional leader, Instructor
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i want to start a internet service company and some of my employees

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i want to start a internet service company and some of my employees don't live in the usa. can they get tax id numbers or how would I report the income that is paid to them. I don't want to be held responcible for their taxes

Robin D :

Hello and thank you for using Just Answer,
They are not required to obtain tax ID numbers. You would ned them to complete W8 BEN forms if they are working outside the US and are not US citizens. This will show that they are not under US taxation and withholding. Their income would not be taxable to the US as long as they are not present in the US or US person.
Here is a link to the IRS page that explains the sourcing of income:
http://www.irs.gov/Individuals/International-Taxpayers/Nonresident-Aliens---Source-of-Income
You will see that salaries, wages, and compensation are sourced where they are performed.

Robin D :

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Robin D. and 2 other Tax Specialists are ready to help you
You may not have been able to view the answer in the CHAT mode. Here is a copy of my answer to you:
Robin D says: 11/4/12 10:18 AM

Hello and thank you for using Just Answer,
They are not required to obtain tax ID numbers. You would need them to complete W8 BEN forms if they are working outside the US and are not US citizens. This will show that they are not under US taxation and withholding. Their income would not be taxable to the US as long as they are not present in the US or US person.
Here is a link to the IRS page that explains the sourcing of income:
http://www.irs.gov/Individuals/International-Taxpayers/Nonresident-Aliens---Source-of-Income
You will see that salaries, wages, and compensation are sourced where they are performed.

11/4/12 10:18 AM

Thank you in advance for a positive rating which will let Just Answer know that you have been assisted.

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