independent contractor us--hq poland

[bstaxes]

Family member has found a job working from home (US) but the company is based in Poland with no US locations. Before he takes the job he needs info about taxes (good idea). For 2009 he would file Fed 1040 but does he file anything for Poland (foreign tax, international return)? His work would be design and then sent to Poland via internet. Does it make a difference in what currency he is paid? He thought he would use pay-pal to collect his pay, I suggested opening an account just to receive pay check and then transfer funds to his regular account (he is concerned about possible scam, I would be also). Any ideas, suggestions, discussion, or links would be helpful. This is my first encounter with foreign money. Boy do I just love the after season questions.

Thanks for any advice.

Barbara

[ILLMAS]

I have a client that does the opposite, they hire software engineers from Mexico and pays them in US dollars, however when they cash there checks the currency changes from dollars to pesos. Since there is no tax treaty between the US and Mexico, my client does not issue out a 1099 or any other tax document, it is the reponsiblity of the individual to report the money earn. I would see it the same in your family member case, the company will pay in euro's (I think), but he would get dollars in the US, he/she will be reponsible on reporting income earned in the US.