Do non-US residents have to submit tax forms to the IRS if they collaborate with an American company?

Hi, I am a non-US resident and provide counseling services on a website. The website represents an American company and, as such, they require all advisers to submit tax forms with proof that they paid their taxes to the IRS. Since I am not an US resident - and therefore presume that the IRS does not care if I paid taxes to my country - I would like to know if they would require me to submit this form, or what laws apply in this situation. Thank you!

Public Comments

1. I have not seen a W4 form lately, but I think it has a section that you check off which indicates that you are a non resident alien and are not subject to US taxes. If that is still the case, you can submit that tax form. The company has to know your status and maintain its records, so they require a form, but it does not mean they will withhold taxes from your fees.
2. If you are not a US citizen or resident and if your services are provided outside of the US then you have no US tax liability. A simple signed statement to the company showing these facts will be sufficient.
3. If you live outside of the US, then this work is not covered by US tax laws. You need to send them a signed statement stressing that you are not a US Person (neither a citizen nor a resident alien) and that you do the work from home and since your home is not in the US, it is not US source work. I would include in the letter a statement that since the work is not subject to US tax law, no 1099-Misc or 1042-S will be issued. US companies often assume since they are paying for the work that it's "US source" and subject to US taxes. (A US Person would pay income tax whether it was US source or not.) They would ask a US Person to file a form W-9 and a non-resident who did the work in the US, a form W-8BEN. There is no form for your particular situation. I would go look at the form W-8BEN and borrow it's language, particularly the "under penalties of perjury" statement above the signature. You can also suggest the payer read IRS publication 515 and call the IRS at 1-800-829-1040 if they have any more questions. If the company is totally clueless, they may try to issue you a 1099-Misc or a 1042-S at the end of the year. Neither is appropriate and will confuse the IRS into thinking the income *is* subject to US tax law.