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Proper tax receipts from Upwork (when you file taxes for your business)

Active Member
Jeff R Member Since: Jun 12, 2016
1 of 1

I am a business owner and I have to report costs of tasks that I order on Upwork as business expenses when file annual taxes. I noticed that since Upwork absorbed Elance, the receipts that I get from Upwork billing section look a bit strange. I asked my accountant to review Upwork receipts and got this response: "These receipts are a joke. They don't comply with IRS or Canada Revenue Agency regulations. If you get audited these expenses will not be accepted as valid business expenses for your company due to faulty receipts".

If you go to debit transactions and download your invoices you'll notice that your invoices only have freelancer's name but don't have an address (which is a requirement of tax authorities). While it has a "remit to" section with the address of Upwork in the bottom right corner, the Upwork is just intermediary, so this invoice will not be accepted by CRA or IRS.

There is an option to use a funding request invoice from Upwork for tax purposes but it's illegal because it is not Upwork that is performing the service but a freelancer whose address you don't report... After speaking with my accountant I checked this with CRA but not IRS, though I am almost sure it's going to be the same answer. 

 

Does anyone have an answer to this problem? 

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