may need your services re. tax filing status - working illegally in the USA

Dear Sir/Madam: I may well need your services in the very near future.

First, some background info.

I am a Canadian citizen. In October 2001, I was laid off from a company I was working for on an H-1B. They are located in XXXXXXXXXX, CA. My position there was XXXXXXX manager and scientist. The company is a XXXXXXXXXXXX manufacturer.

I attempted to find a new employer to 'take over' my H-1B, but had no luck. Thus, I decided to offer my services as a scientific and marketing consultant to the XXXXXXXXXXX trade.

I still live in California, and have not been back to Canada since leaving my last full-time employer. My scientific and marketing consulting business has become quite successful, and I need to pay my taxes!
From the standpoints of Revenue Canada and the IRS under what classification (e.g., deemend non-resident of Canada) do I fall? Must I return to Canada?

I have been giving my clients my Canadian Social Insurance Number, not my U.S. Social Security Number.

I will soon need to hire employees and set up an office; of course, I want to do this legally if I reside in the U.S. (which is where I want to stay).

What are my options?

Thank you for your time!

You are in the USA completely illegally and if "caught" are subject to arrest, imprisonment, fine and deportation. If that happens, you will be banned automatically from the USA for a minimum of five years.
However, whether there legally or illegally, you are only a resident of the US for income tax purposes. From your description, you have NO Canadian Tax Liability on the income earned in the USA.

For 2001, you would have or should have filed as a resident of the USA and filed a California 540 and a US 1040 reporting your earned income and your self-employed income. The problem is that you will be paying significant US Social Security and will not be able to claim it at the end because to claim social security, you have to prove you were there (in the USA) legally when you paid in.
For 2002 you will do the same thing.

This is a big mistake. If an audit of one of their returns shows payments to a non-existent number for someone they are dealing with in the US, you guarantee yourself a visit from the Feds.

There are an estimated 144,000 Canadians living and working in the USA illegally. You are one of them. The larger you get, the more chance there is that you will be caught. You need to get legal now - BEFORE - you hire an employee.

Click on to <>; and read the "ENTER US" section. See if you can find something you fit into. You might be eligible for an E2 visa for instance (read the January 95 newsletter under Newsletters). It seems to me that you have started something that is paying for itself. We need to find you a sponsor to hire you under an H1 again (to look after the business you have started). Then apply for your Resident Alien card, etc., etc. BUT you better get it straightened out or you will be deep doo doo as they say.

If you send us your financial information up here, we would be glad to do the returns. But we have to make you legal now. And do NOT put off filing your return.

You have a legal SSN. We would use that. How is your love life? Can we find you a US lady to marry?

david ingram


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