IRS Wistle Blower

[BScott66]

Is it illegal for a company with no US Entity (TAX ID #) to host systems which are located in the USA and use to produce income? The income is being claimed in the USA by another entity before the monies are distributed to the ASIA company which is in my eye avoiding paying taxes.

The Systems which are hosted in the USA are billed directly to the ASIA based company. By the collocation facility hosting the systems, and provided the communications/services.What is the name of your state (only U.S. law)?

 

[davew128]

So what is your legal theory that this is somehow illegal?

 

[tranquility]

You'll need to consult with an international tax expert and have specific facts of actual accounting to be sure.

 

[davew128]

I suspect it is an entirely legal arrangement and the entity paying tax is a subsidiary of the Asian company paying a dividend to it, such dividend being completely nontaxable to the Asian company under US law.

 

[tranquility]

Of course. But, how would you know for sure? What would you need for the IRS to care?

 

[KmanStuck]

Is it illegal for a company with no US Entity (TAX ID #) to host systems which are located in the USA and use to produce income? The income is being claimed in the USA by another entity before the monies are distributed to the ASIA company which is in my eye avoiding paying taxes.

The Systems which are hosted in the USA are billed directly to the ASIA based company. By the collocation facility hosting the systems, and provided the communications/services.What is the name of your state (only U.S. law)?

We have an agency that can answer your questions .. its called the IRS .. why post here when you can write or call them???