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Taxation for freelance work in Puerto Rico.
Thread poster: yugoslavia

yugoslavia
United States
Local time: 11:49
English to Spanish
+ ...
Jan 13, 2014

Dear Colleagues,

Happy New Year!!

I hope you are doing well.

I’m writing to you because I’m a languages translator and interpreter living in New York. I’m writing to you because I performed an interpretation project with a translation company from Puerto Rico here in New York City. The translation company from Puerto Rico never sent me the 1099 tax form used here in The US to file our income tax return.
This is the tax form used in The United States so the independent contractors can file their taxes with The Internal Revenue Service. The main problem is that I’m not sure if The Department of Treasury of San Juan”(Departamento de Hacienda de San Juan in Spanish) reports to the IRS these earnings.

I have requested a copy of this tax form in numerous occasions but the translation company still doesn’t send me anything even they have promised me to send me this several times. I have even requested this 1099 form directly from the translation company owner but not even he is sending me this. I’m completely aware that Puerto Rico is not considered a state of The United States but is considered a free associated state and is also an incorporated territory of The United States.

I tried to reach the Puerto Rico Department of Treasury several times but they haven’t answered my e-mail messages. I spoke with a representative today of the session of General consultations (Sección de Consultas Generales in Spanish) from The Puerto Rico Department of Treasury but he didn't have an answer to my question either.

I’m aware that some American companies don’t report to The IRS (Internal Revenue Service) amounts of less than $600 US Dollars but the amount of money earned in this interpretation project was more than this because I was working for around 7 days and also for several hours.

According to one of the supervisors of my local IRS office, he believes that Puerto Rico doesn’t report to the IRS and maybe that’s the reason why I didn’t get the 1099 tax form from this company located in Puerto Rico.

I just would like to confirm if this is correct. I have heard previously through an American accountant that some Canadian companies report to the IRS the earnings of work done by their independent contractors located in The US. I will appreciate your prompt response about this matter.

Thanks for your prompt response.

Respectfully yours,
Edwin


 

Jean Lachaud  Identity Verified
United States
Local time: 11:49
English to French
+ ...
You must file anyway Jan 13, 2014

Just because you don't receive a form 1099 doesn't mean that you shouldn't, or can't, report the money earned on your tax filing.

 

Tim Friese  Identity Verified
United States
Local time: 10:49
Member (2013)
Arabic to English
+ ...
Exactly Jan 13, 2014

JL01 wrote:

Just because you don't receive a form 1099 doesn't mean that you shouldn't, or can't, report the money earned on your tax filing.


I'm not a tax lawyer, but yes as I understand it you simply report all income. I use my invoices to keep track and then keep a separate log for the small number of cash transactions I've had.


 

yugoslavia
United States
Local time: 11:49
English to Spanish
+ ...
TOPIC STARTER
Thanks but I have a specific question Jan 14, 2014

Hi Tim and JL101

Thanks for your response but my specific question is that if they report it to the IRS or not. I always report all my income but they never sent me a 1099 tax form. The reason why I'm asking this is that I want to be sure if I should expect a 1099 from this Puerto Rican company or not. Please address my specific concern.

Thanks for your help.

Yugoslavia


 

Katalin Horváth McClure  Identity Verified
United States
Local time: 11:49
Member (2002)
English to Hungarian
+ ...
It looks like they don't have to report it Jan 14, 2014

I looked through several publications on the IRS website, including those that list 1099-MISC filing deadlines for each state. None of them listed Puerto Rico at all.
This website has that info, in a nice map format.
http://filetaxes.com/Content/State_Requirements
48 US Code says the internal revenue laws don't apply to Puerto Rico.
http://www.law.cornell.edu/uscode/text/48/734

This is only if the company is incorporated in Puerto Rico. If it was incorporated in the US, the IRS rules apply. But they have until January 31 to issue and send you your 1099-MISC.
It is only Jan 14, and I have not received a single 1099 yet, even though I have several US clients who will issue them. One question is - did they ask you to fill out a W9 (or W8) form, or asked for your SSN? They need that info to issue a 1099. By the way, why don't you ask them directly whether they are reporting to the IRS, if that is your main concern?

It really doesn't matter whether they issue a 1099 or not, you have to report the income anyway on your US tax forms.
The only possible complication is paying taxes in Puerto Rico - if they withheld local taxes, you can make a claim on that amount.

But I am not a tax accountant. If you need further confirmation, I suggest you contact a tax professional.


 

yugoslavia
United States
Local time: 11:49
English to Spanish
+ ...
TOPIC STARTER
Thanks a lot. Jan 14, 2014

Hi Miss Horvat,

Thank you very much for your reply. I just finished a translation project and I will have an interpretation project in a court hearing today, 3 hours from here. I will respond to you with more information when I return from South Jersey. I have called this translation company many times , they always promise to send me something but they never do. I'm going to report it to The IRS. I just need it for a immigration family member application. I became US Citizen 2 months and a half ago. I applied for a family member. They require copies of the US tax returns and the 1099 forms when you are submitting an INS application for a family member.

Thanks again for all your help.
Yugoslavia

[Edited at 2014-01-15 07:04 GMT]


 

Lori Cirefice  Identity Verified
France
Local time: 17:49
French to English
Just produce the 1099s you have Jan 14, 2014

For the application, you can surely just produce the 1099s you already have, it shouldn't matter if one is missing (and in fact, I have no idea if your client is really required to send it to you or not). As you will also provide your tax returns, INS will be able to determine how much you earn. I suppose you need all this for an affidavit of support?

 

yugoslavia
United States
Local time: 11:49
English to Spanish
+ ...
TOPIC STARTER
Thanks Lori. Jan 15, 2014

Hi Lori

Thanks for responding to my Forum. I will reply to you tomorrow. I just got home from South Jersey where I was working as a Spanish-English interpreter and I'm extremely tired.Yes, I need all this for an affidavit of support. INS is very strict.

Thanks again.

Yugoslavia


 

yugoslavia
United States
Local time: 11:49
English to Spanish
+ ...
TOPIC STARTER
Thanks and answers to your questions. Jan 15, 2014

Hi Miss Katalin,

I hope you are doing well. I'm really sorry about the delay responding to your message. I came back at 1:30 am from an interpretation project in South Jersey. I was traveling for around 7 hours and a half plus 3 hours of interpretation

I'm writing to you to say thanks again for your response and the valuable links. I tried to reach The Puerto Rico Department of Treasury by e-mail and by phone without success. Yes, I was asked for my social security number but they didn't ask me to fill out a W-9 form or another tax form. I was working with them as an interpreter in the United Nations conference. Maybe that was the reason why they asked for the social security number. It was a very high security that day because the UN General assembly.

I'm also thinking that the security needed to have information of the interpreters due to the problems in the city. New York has had several attacks since 2001 and the security guards were asking us to present our New York State ID several times.

I was just wondering because Puerto Rico is considered a free associated state if they report to The New York State Department of Taxation and finance. Of course, I'm reporting this income to The IRS. I just became a US citizen 3 months ago and I need to send copies of my income tax returns and 1099's to The Department of Homeland Security. I'm applying for a family member, INS needs copies of them.

Thanks for all your help.

Yugoslavia

[Edited at 2014-01-16 01:24 GMT]

[Edited at 2014-01-16 05:16 GMT]


 

yugoslavia
United States
Local time: 11:49
English to Spanish
+ ...
TOPIC STARTER
Another thing. Jan 15, 2014

Miss Katalin,

I forgot to tell you. I signed a contract when I worked for them. I will be glad to show you a copy of this if you have some time. I just don't see the information of taxes mentioned here.
Thanks again.
Edwin

[Edited at 2014-01-16 05:16 GMT]


 

Katalin Horváth McClure  Identity Verified
United States
Local time: 11:49
Member (2002)
English to Hungarian
+ ...
I think you are overcomplicating things Jan 18, 2014

For immigration purposes, they would ask for your tax returns of PAST years, right?
You are not required to file your taxes now, you have until April 15, 2014 for tax year 2013, so you don't necessarily have a tax for for year 2013 yet. I think they need you to show them that you are a responsible taxpayer, and that you can support the family member financially. For that, they look into the past, I am not sure how many years. It makes sense, because if they requested recent data, it could be tempting to manipulate it in a way that is favorable for the application. (You may try to show more income than you normally have.) They need to see the steady pattern, I guess.

Anyway, your immigration lawyer should be able to help clarifying things for you.
If you do need to file your 2013 taxes early and show the immigration office your tax return now, the only reason they would ask for that particular 1099 if they don't believe you actually did that job, but in that case you can show them the contract you mentioned, and also your bank account statement that shows when they sent the money.

I honestly don't think that one 1099 would be the deciding factor in this case. Don't worry about it, just add that income to your other income and pay the taxes, you should be fine.


 

yugoslavia
United States
Local time: 11:49
English to Spanish
+ ...
TOPIC STARTER
Thanks for the information and other helpful information. Jan 18, 2014

Hi Miss Katalin,

I hope you are doing well.

Thanks for responding to my e-mail message and to my forum posting. The main problem is that this 1099 tax form was supposed to be sent last year but I got paid for this interpretation project by the translation company from Puerto Rico very late.

My accountant is going to do an amendment for my 1040 income tax return for the year 2012 because I got this payment when that calendar year was already over. I have tried to communicate with The Puerto Rico Department of Treasury again today but every time I call them the phone rings but nobody ever answers the phone. I e-mailed them several times. They answered me and advised me to get in touch with three different telephone number extensions of The Department of Treasury but nobody answers the phone and I don’t get an answer machine either even I call them in the mornings or in the afternoons.

I was just wondering because Puerto Rico is considered a Free Associated State and is an unincorporated territory of The United States will they also report to The New York State Department of Taxation and finance? Maybe New York State Department of Taxation and Finance will have this information.

Of course, I'm reporting this income to The IRS but I’m just wondering if the companies from Puerto Rico report to The IRS or to The New York State Department of Taxation and Finance as well because I can’t reach anybody in the phone numbers of The Puerto Rico Department of Treasury so far. I was able to reach somebody one time but he didn’t have much knowledge about this and he tried to transfer me to another extension but nobody answered the phone.

The INS lawyer says that it is better to have all the 1099’s available because it is better during interviews.

I will appreciate your information and advice about this matter.

Thanks again.

Yugoslavia


 

yugoslavia
United States
Local time: 11:49
English to Spanish
+ ...
TOPIC STARTER
Thanks Lori Jan 23, 2014

Hi Lori,

I hope you are doing well in France.

I'm sorry about the delay responding to your forum message.I came back home very tired from an interpretation project in Philadelphia 3 hours and 30 minutes from here. I have also an urgent Spanish into English translation project and I just finished today.

The lawyer advised me to send the 1040's income tax returns along with all the 1099's forms. I tried to reach The Puerto Department of Treasury by phone without success. I also sent several e-mail messages but I get only a message saying that they are not there.


I was just wondering because Puerto Rico is considered a free associated state if they will also report to The New York State Department of Taxation and finance. Of course, I'm reporting this income to The IRS. I just became a US citizen 3 months ago and I need to send copies of my income tax returns and 1099's to The Department of Homeland Security. I'm applying for a family member, INS needs copies of them.

Thanks for all your help.

Yugoslavia


 


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