Companies Violating B-1 Visa Law Have Workers in the US Paying No Income Tax

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Executive Summary

  • The B-1 visa is being used to bring over foreign workers illegally, and pay them in their home country.
  • This is income tax evasion on the part of companies and the B-1 visa workers.


In investigating the corruption of the H1-B program, we came upon how Infosys engaged in fraud against the US government’s B-1 visa program.

“Apparently, the US consulate in Chennai [India] is issuing B1/B2 visas that can be used in lieu of H1-B visas for legitimate H1-B classified work so long as the recipient is 1) paid abroad and 2) shows conclusively that he/she will return abroad at the end of his/her authorized admission.”

“You can see where this is going,” the agent continued. Companies could “set up a dummy subsidiary in India and avoid the (nominally enforced) requirements that a job is posted in the US and have comparable pay to that of a US worker. This also guarantees that not one dime of tax revenue for this high tech work will go to US coffers.” – Sold Out

This is also explained by the following quotation, which was testimony to the Senate by Jack Palmer, the Infosys whistleblower.

The abuse of the B1 and H1 visa laws as well as the income tax laws is widespread in this country. Americans are being displaced and foreigners are working full time jobs in the US without paying income taxes,” Palmer told Congress.

The solution is simple: We need to tighten the visa law and enforce the law. Until a major corporation is disbarred from the visa program or someone is indicted from a major company, this behavior will continue.” – Sold Out


B-1 visitors are allowed in the US under the understanding that they do not work, and they are not compensated. By having them do actual work, which is what Infosys and other companies are doing, and paying them in their home countries, the company evades both payroll taxes, but the B-1 visitors do not pay income tax.