According to Meyers Norris Penny, the The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act contain a provision requiring all US companies to report to the IRS all payments to persons or companies in excess of $600, including payments made to Canadians. The consequence for many Canadian companies doing business cross border will likely be a complete review of their tax strategy to ensure compliance given increased scrutiny and transparency.
The article from Meyers Norris Penny is HERE.
Aside from the impact on Canadian-American tax strategy, can you imagine the administrative burden on US companies forced to report all payments? Amazing.
Posted by Scott Sinclair, Range Corp., Range Capital Advisors