USAB Withholding

[Taxsman]

Have been in contact with a CPA who contends USAB cannot withhold because income is foreign sourced, unless they pay the rest of the payroll taxes. I fell we have been singled out for yet another screwing. Any comments?

[BUSDRVR]

My understanding is they can withhold $$$$ but any withholdings ( TAX) must then be paid to the US GOVT for and they will have to provide you with a W2 by jan 31st of the following year, that states your income and the TAX withheld from you for the previous year. The W2 you send in with your tax ( IE 1040 form ) is just proof that the company has sent that money to the US GOVT not what you earned.

eg, if based in HKG you do not send a w2 to the IRS when you file your taxes because all money is foreign sourced and you work for a foreign company. There has been no company withholding. What you have earned overseas is your responsibility as an American to report to the IRS and to file 1040.

CX USAB has to pay quarterly to the US GOVT. That money should be there as the company is supposed to be registered in the USA with a Tax ID Number. If they do not pay the US TReasury, the IRS will not allow you the ability to get your moneyback in the form of a tax return. (if you qualify) IF in fact this is the case, they ( CX USAB ) are in a very serious legal position. Many employers in the USA have been caught spendiing the employees withholdings, which is a serious crime.

[jetspresso]

With a name like buttmunch? You have got to be kidding.

[Taxsman]

Here's where I'm losing the plot Busdriver; all USAB waages are foreign sourced. USAB is not registered in the US, purposely to avoid US labor law. So how can they withhold???

[BUSDRVR]

Tax I agree with the part of being foreign sourced etc.

If they are withholding, then they best be paying it to the US Treasury, so you can claim the money back on by April 15th.

Death and Taxes, you can not avoid them!
Just ask RD what the tax ID number is and where the money is going, he should have a clear explanation of the entire situation as he has had 2.5 years to figure it out.