Tax reporting obligation for downloaded phone apps

August 20, 2020


Q.¬†We are purchasing T&E software licenses from a Canadian vendor. The licenses are for use of the software hosted on the vendor's website, so its my understanding that even though we would be making annual payments there would be no US Sourced income, and so no withholding or reporting obligation. My question is, if employees download the cell phone app that allows them to scan receipts and check on their expense reports, would that create any tax obligation? The employees using the app are…

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