Quote:
Originally Posted by Barry-xlovecam
https://www.irs.gov/uac/Form-W-8BEN,...ax-Withholding
https://www.irs.gov/instructions/iw8ben/index.html
Don't get accounting advise from GFY. Pay an accountant or figure this out yourself.
Only US entities are generally bound to US tax laws. Payment processing is not a taxable transaction unless there is an IRS or Tax Court order that would attach proceeds.
In order to have US processing you need to be a US entity ( LLC or Corporation). Any US entity, even if a foreign incorporation, has domicile in the USA and must file a tax return. Get a CPA to deal with it and pay him ...
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Your point is well taken and appreciated but I wasn’t really looking for advice as much as
giving my opinion about money earned by MFC (almost $100,000.00) from a foreign person/source, in this case a cam girl as being taxable, because a few in here are saying it is not taxable.
Yet the Department of Treasury Publication 515 states that a US company paying a foreign person is subject to U.S. Internal Revenue Service tax of 30% and has to be filed with the IRS with the appropriate forms.
Could you imagine the consequences if a site as large as MFC who are paying millions of dollars a week to foreign workers did not deduct the appropriate 30% tax? They would be ruined.