U.S Government Taking Money From Business's

A business owner has recently been contacted out of the blue by the tax departments of many different U.S. states, and asked if anyone else had experienced the same from the U.S. The room came to life, with about half the people there experienceing similar experiences.

Not according to one U.S. tax specialist. He has seen a very large increase in cross border inquiries by state tax departments as governments try to make up for recession. The same accountant says there is a high degree of tax among Canadian firms doing business in the U.S, because they have no clue they owe any tax. The lesson for business owners doing business across the border to the U.S is to prepare for a call from the U.S. taxmen and have your chequebook ready.

Tax researching is not always so greta. One business man, who received a letter from Pennsylvania authorities because his firm’s name appeared on the list of a Philadelphia trade show. The letter didn’t ask for payment but for him to provide more information on his firm’s activities in the Keystone State. That business mans accountants told him not to respond, which avoids any chance of him having to pay U.S taxes. Firms property holdings in the state question, whether the firm conducts business there or not, should the company owe taxes. That last question can be very hard to answer, considering the difficulties among the 50 state tax codes.

I think Canadian business paying taxes in the states is fair because if they are doing business there, either buying or selling products or services in the U.S, they should pay taxs like any other American business. They are technically a U.S business if they are working across the border.