"Harlan Lunsford" <lunstax[at]bellsouth.net> wrote:
- quote -

I don't understand "She was not a common law employee, since
the company had no physical presence in the U.S." ?

My employer also seems to not have a U.S. presence, however,
he owns websites (no, they aren't porn sites) with a U.S.
partner. Most of they members of these sites are in the U.S.
and my employer has a U.S. company that collects the credit
card receipts and forwards that to him where he lives. This
U.S. company is held be his U.S. partner and an employee who
holds my employer's share subject to an agreement to sell
the shares to my employer upon demand at any time in the
future. Of course he thinks he is terribly clever.

I guess what you are saying is that I need to suck it up and
just go with flow, filing as an independent contractor. In
effect, my employer doesn't have to pay his share of social
security, etc.

Bill

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bill wrote:
- quote -

As an independent contractor on schedule C with "profits"
flowing over (or overflowing!) to Schedule SE.

I recall such a case. The girl worked for a foreign flag
cruise line and no 1099-misc was even issued, so she THOUGHT
she didn't have to report ANYTHING on her tax return.

She was not a common law employee, since the company had no
physical presence in the U.S. Calling at the port of Ft
Lauderdale did not count.

I don't know how she eventually handled it, as she didn't
like my opinion.

Cheer$,
Harlan Lunsford, EA n LA

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<sheesh3[at]yahoo.com> wrote:
- quote -

But should I be filling as an employee or as an independent
contractor? Since my employer is not withholding for either
income or social security taxes, I still owe the income tax
and my share of the social security tax but am I stuck
paying his share of the social security, too? (There are
state issue, too, I guess, like unemployment insurance and
workmen's compensation insurance. As an independent
contractor, I would not be entitled to unemployment but as
an employee .....)

thanks,
Bill

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"bill" <no_replies[at]verizon.com> wrote:

- quote -

From your perspective, you have no issues, assuming you
properly declared the income on your tax return anyway. The
employer's failure to do the right thing does not excuse
your tax liability/reporting.

The employer may or may not be in trouble depending on what
their actual requirements are. I don't do corporate issues,
so I have no comment on that.

bex

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I am doing work for a foreign company; they do not have a
subsidiary or other legal entity in the U.S. They classify
me as an "independent contractor" although that
classification would fail nearly every IRS test for
determining "employee vs. independent contractor." My
"employer" claims that a foreign company cannot have
employees in the U.S. because they have no legal presence
(whatever that means) here. Meanwhile, they never issued me
a 1099 for 2002. Don't know what they will do for 2003.

Aren't there some serious consequences for not issuing a
1099 to a "contractor" and even more serious consequences
for blattently mis-classifying an employee?

Thanks in advance.
B.

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