working on a TN and 1099 -ask Joe Grasmick -

Hello David,

I found your contact information on the Internet
(, in a posting
that closely reflects my situation.

I am currently working on a TN visa in the US and just in the process on
moving to another project. However, lawyers from the hiring agency insist
that I *have* to work as a W2 employee and I know that this is not true. My
intent is to work as 1099, which means that billing goes through my Canadian
company (incorporated in Ontario). From your post (link above), I know about
tax considerations I have to keep in mind.

Would it be possible to hire you for a consultation so that you can explain
to the lawyer at the hiring agency that 1099 can be done on a TN visa and
how? I do not anticipate any issues with issuing of the TN visa because I
have done it many times before. This issue I am writing you about is tax

Thank you in advance. Below is the email that hiring agency shared with me.
It contains lawyer's contact information. From his email and suggestion #2,
I see that he has not dealt with TN before, otherwise he would not suggest
obtaining a TN visa without a TN letter from the US company. It would be
great if you could provide clarity on the tax situation and what exactly has
to be specified in the contract between NueVista and my company to avoid any
hassles with the IRS. Thank you in advance.



Here is the lawyer's response:

From: Michael xxxxxx
Sent: Monday, August 06, 2007 10:57 AM
To: xxxxxxx
Cc: xxxxxxxxxxxx
Subject: RE: Monday

8 CFR 214.6(b) prohibits him being on a 1099 if sponsored by xxxxxxx.
trying to get cos. to sponsor for TN under a 1099 is an old scheme designed
to avoid taxation in either country and remains quite popular but, the IRS
can some back on xxxxxxxxx for the tax obligations if you participate in the
2 options 
1) sponsor as a TN and employee him not as a contractor
1099 but, as an employee W-2 or 
2) contract with his company directly and
let him deal with obtaining the TN via for his own company but, provide no TN
support letter but, you can sign a contract with his co. (not with him) and
then pay his co. directly and issue a 1099 to his co. as you would any other
If you decide option #2, I recommend that you let me review any
contract or other document he wishes you to sign. xxxxxx 
david ingram replies:

I am answering this twice. There is another answer going directly to you.

The Hammond Law Firm is a very good US immigration firm and your problem is that they do know what they are doing. 
Although I disagree in principal with the concept that you can not be paid on 1099 for a short term contract, he is completely correct in stating that xxxxxxxxxx can not issue you a letter, get a TN in your name and then pay your corporation.

He is also 100% correct is strating that xxxxxxxxxxxxx would not issue you a TN letter if you were going to get a corp to corp contract. 

In that case, you would need a contract with your corporation and xxxxxxxxx and 'your' corporation would write the letter.  XXXXXXXXXXXX DOES know what he is doing and the XXXXXXX law Firm runs multiple seminars and immigration meetings in the general XXXXXXX area.

If you have been working for your corporation in the past but the visa was issued to you by a US corporation, you have been working illegally in the US and are lucky you have not had a problem so far.

Remember that I am NOT a lawyer but deal with immigration issues on a regular basis because of my US Canada cross border tax business.

One of the deans dealing with the issuance of a TN Visa to a Canadian is Joe Grasmick at
He has a 'pay in advance' telephone consultation service and I suggest that if you want a second legal opinion, you contact him.  He wrote the TN handbook which just about everyone in the US/CANADA/MEXICO TN buisinesss uses as a manual at some point.

In the meantime, don't make too much of a fuss or you could end up with retroactive penalties.

So that you understand where I am coming from, In the past, you should be reporting every single cent of money paid to your Candian corporation as gross income on your US tax return.

David Ingram wrote:
It is very unlikely that blind or unexpected email to me will be answered.  I receive anywhere from 100 to 700  unsolicited emails a day and usually answer anywhere from 2 to 20 if they are not from existing clients.  Existing clients are advised to put their 'name and PAYING CUSTOMER' in the subject and get answered first.  I also refuse to be a slave to email and do not look at it every day and have never ever looked at it when i am out of town. 

However, I regularly search for the words"PAYING CUSTOMER" and always answer them first if they did not get spammed out. As an example, as I write this on June 28th, since June 16th (12 days), my 'spammed out' box has 7,118 unread messages, my deleted box has 2630 I have actually looked at and deleted and I have answerd 63 email questions I have answered for clients and strangers.  I have also put aside 446 messages that I am maybe going to try and answer because they look interesting.

Therefore, if an email is not answered in 24 to 36 hours, it is lost in space.  You can try and resend it but if important, you will have to phone to make an appointment.  Gillian Bryan generally accepts appointment requests for me between 10:30 AM and 4:00 PM Monday to Friday VANCOUVER (Seattle, Portland, Los Angeles) time at (604) 980-0321

David Ingram's US / Canada Services
US / Canada / Mexico tax, Immigration and working Visa Specialists
US / Canada Real Estate Specialists
My Home office is at:
4466 Prospect Road
North Vancouver,  BC, CANADA, V7N 3L7
Cell (604) 657-8451 -
(604) 980-0321 Fax (604) 980-0325

Calls welcomed from 10 AM to 9 PM 7 days a week  Vancouver (LA) time -  (please do not fax or phone outside of those hours as this is a home office)
Disclaimer:  This question has been answered without detailed information or consultation and is to be regarded only as general comment.   Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader and the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent and appropriately qualified legal practitioner or tax specialist for expert help, assistance, preparation, or consultation  in connection with personal or business affairs such as at If you forward this message, this disclaimer must be included."
David Ingram gives expert income tax & immigration help to non-resident Americans & Canadians from New York to California to Mexico  family, estate, income trust trusts Cross border, dual citizen - out of country investments are all handled with competence & authority.
Phone consultations are $400 for 15 minutes to 50 minutes (professional hour). Please note that GST is added if product remains in Canada or is to be returned to Canada or a phone consultation is in Canada.
This is not intended to be definitive but in general I am quoting $800 to $2,800 for a dual country tax return.
$800 would be one T4 slip one W2 slip one or two interest slips and you lived in one country only - no self employment or rentals or capital gains - you did not move into or out of the country in this year.
$1,000 would be the same with one rental
$1,200 would be the same with one business no rental
$1,200 would be the minimum with a move in or out of the country. These are complicated because of the back and forth foreign tax credits. - The IRS says a foreign tax credit takes 1 hour and 53 minutes.
$1,500 would be the minimum with a rental or two in the country you do not live in or a rental and a business and foreign tax credits  no move in or out

$1,600 would be for two people with income from two countries

$2,800 would be all of the above and you moved in and out of the country.
This is just a guideline for US / Canadian returns
We will still prepare Canadian only (lives in Canada, no US connection period) with two or three slips and no capital gains, etc. for $150.00 up.
With a Rental for $350
A Business for $350 - Rental and business likely $450
And an American only (lives in the US with no Canadian income or filing period) with about the same things in the same range with a little bit more if there is a state return.
Moving in or out of the country or part year earnings in the US will ALWAYS be $800 and up.
TDF 90-22.1 forms are $50 for the first and $25.00 each after that when part of a tax return.
8891 forms are generally $50.00 to $100.00 each.
18 RRSPs would be $900.00 - (maybe amalgamate a couple)
Capital gains *sales)  are likely $50.00 for the first and $20.00 each after that.
Just a guideline not etched in stone. 
This from "ask an income trusts tax and immigration expert" from or or David Ingram deals on a daily basis with expatriate tax returns with multi jurisdictional cross and trans border expatriate problems  for the United States, Canada, Mexico, Great Britain, United Kingdom, Kuwait, Dubai, Saudi Arabia, Thailand, Indonesia, Japan, China, New Zealand, France, Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador, Bolivia, Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel, Iraq, Iran, India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland, Cuba, Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands, US, UK, GB, and any of the 43 states with state tax returns, etc. Rockwall, Dallas, San Antonio Houston, Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and Immigration Tips, Income Tax  Immigration Wizard Antarctica Rwanda Guru  Consultant Specialist Section 216(4) 216(1) NR6 NR-6 NR 6 Non-Resident Real Estate tax specialist expert preparer expatriate anti money laundering money seasoning FINTRAC E677 E667 105 106 TDF-90 Reporting $10,000 cross border transactions Grand Cayman Aruba Zimbabwe South Africa Namibia help USA US Income Tax Convention

David Ingram expert income tax and immigration help and preparation of US Canada Mexico non-resident and cross border returns with rental dividend wages self-employed and royalty foreign tax credits family estate trust trusts income tax convention treaty

New York, Boston, Sacramento, Minneapolis, Salem, Wheeling, Philadelphia, Pittsburgh, Atlanta, Pensacola, Miami, St Petersburg, Naples, Fort Myers, Cape Coral, Orlando, Atlanta, Arlington, Washington, Hudson, Green Bay, Minot, Portland, Seattle, St John, St John's, Fredericton, Quebec, Moncton, Truro, Atlanta, Charleston, San Francisco, Los Angeles, San Diego, Sacramento, Taos, Grand Canyon, Reno, Las Vegas, Phoenix, Sun City, Tulsa, Monteray, Carmel, Morgantown, Bemidji, Sandpointe, Pocatello, Bellingham, Custer, Grand Forks, Lead, Rapid City, Mitchell, Kansas City, Lawrence, Houston, Albany, Framingham, Cambridge, London, Paris, Prince George, Prince Rupert, Whitehorse, Anchorage, Fairbanks, Frankfurt, The Hague, Lisbon, Madrid, Atlanta, Myrtle Beach, Key West, Cape Coral, Fort Meyers,   Berlin, Hamburg,  Warsaw, Auckland, Wellington, Honolulu, Maui, Kuwait, Molokai, Beijing, Shanghai, Tokyo, Manilla, Kent, Winnipeg, Saskatoon, Regina, Red Deer, Olds, Medicine Hat, Lethbridge, Moose Jaw, Brandon, Portage La Prairie, Davidson, Craik, Edmonton, Calgary, Victoria, Vancouver, Burnaby, Surrey, Edinburgh, Dublin, Belfast, Glasgow, Copenhagen, Oslo, Munich, Sydney, Nanaimo, Brisbane, Melbourne, Darwin, Perth, Athens, Rome, Berne, Zurich, Kyoto, Nanking, Rio De Janeiro, Brasilia, Colombo, Buenos Aries, Squamish, Churchill, Lima, Santiago, Abbotsford, Cologne, Yorkshire, Hope, Penticton, Kelowna, Vernon, Fort MacLeod, Deer Lodge, Springfield, St Louis, Centralia, Bradford, Stratford on Avon, Niagara Falls, Atlin, Fort Nelson, Fort St James, Red Deer, Drumheller, Fortune, Red Bank, Marystown, Cape Spears, Truro, Charlottetown, Summerside, Niagara Falls, income trust, Income Tax Treaty Convention
international non-resident cross border expert income tax & immigration help estate family trust assistance expert preparation & immigration consultant david ingram, income trusts experts on rentals mutual funds RRSP RESP IRA 401(K) & divorce preparer preparers consultants Income Tax Convention Treaty
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