united-states federal-tax-law
Is a foreign indepedent contractor allowed to receive payment into a US bank account?
<p>Suppose that I do work for a US company as an independent contractor, and I'm neither in the US, a US citizen or a US resident. As such, I would fill in a <a href="https://www.irs.gov/forms-pubs/about-form-w-8-ben" rel="nofollow noreferrer">W-8BEN form</a> for tax purposes. Would I then be allowed to receive payment for my services into a US bank account in my name?</p>

<p>Such a bank account could for instance be the <a href="https://transferwise.com/help/17/borderless-account/2827506/how-do-i-use-my-usd-bank-details" rel="nofollow noreferrer">one offered by TransferWise</a>, which is easy to open for someone living, say, in the UK. I'm not asking whether it is technically possible, but whether it would be legal under US tax law.</p>

<p>Online search suggests this is an option, however I'm aware of a specific business (whose name I won't disclose) which claims to be unable to pay foreign independent contractors in a US bank account.</p>

<p>Yes, it is legal under US tax law.  US tax law is concerned with collecting tax.  The questions that tax law asks are</p>

<ol>
<li>Must the income be declared to the IRS?</li>
<li>Is the income taxable?</li>
<li>How much tax is due?</li>
</ol>

<p>Whether US tax law requires the income to be declared or considers it taxable does not depend on whether it is paid to a US or foreign bank account.  This also has no effect on the rate of taxation.  US tax law is not concerned with the specific route the money takes to get from your client to you.</p>

<p>If the income is in fact taxable, and you declare it and pay tax accordingly, you will not have violated any US tax law.</p>
