Foreign wages earned in US no SS or ITIN where do I report this?

[Just-Lisa-Now-]

How'd they earn wages in the US without any SSN or ITIN?

[itonewbie]

That's what I was wondering....  How in the world would you have foreign wages earned in the US.  Wages earned in the US are, by definition, US wages albeit paid by a foreign employer, who may not have complied with the reporting/withholding requirements, which need to be addressed separately.

[GiGi1160]

Foreign company pays Foreigner which is married to US citizen applying for I-94 & ITIN with return which worked as consultant living in US and gets paid in country of origin

[GiGi1160]

he is an employee of foreign company, so no W-2 form, do I file as wages or self-employed?

[sjrcpa]

Wages

[itonewbie · Accepted solution]

If your client was in the US for very brief periods, depending on whether he/she was from a treaty country, the number of days spent in the US for any purpose (either during the calendar year or a 12-month period), the amount of income earned, how the cost of his/her remuneration was borne, and whether the employer has a PE in the US, it is possible that treaty exemption or §861(a)(3) may apply.

[itonewbie]

You need to verify, based on common law 20-factor tests, whether the taxpayer is really an independent contractor.  If he is indeed an independent contractor, the income should be reporting on Sch C instead of on Line 7.

Looks like he is getting his immigration status adjusted based on his marriage to the US citizen.  Does he actually have the proper immigration status and authorization to work in the US?  Not directly related to tax and should not be a consideration for tax compliance but it's something you should caution him to consult with his immigration attorney.

As mentioned in my comment, there may be more than meet the eyes.  By his presence in the US and relationship with the foreign entity, he may already have created PE exposure to the foreign entity (especially if he is a common law employee or an agent who represents only that entity), not to mention potential lapses in the various reporting/withholding compliance requirements.

[sjrcpa]

They get reported as wages. They will need to get an ITIN to file the tax return.