your insights are really helpful. the situation i'm concerned about is quite convoluted (for me). no one without a work-permit has worked _within_ the us, but compensation for a software product was paid directly to the individual. this involved that individual signing a W8BEN. maybe it makes sense for me to contact a lawyer at this point. thanks again,

*edit: i don't know if anyone else is reading this thread, but references for a trustworthy lawyer who can discuss a specific situation via email would be welcome.