How H-1Bs and L-1s Avoid Paying Taxes

1. A company in India (in this case Leading Edge) hires someone that will become an H-1B.
2. Leading edge subcontracts them to a bodyshop like TATA or Syntel.
3. TATA gets them a job at an American company.
4. Leading edge deposits the pay check directly into the employees Indian bank account.
5. The H-1B is given a living allowance that is free of all U.S. taxes.
6. TATA also supplies them with housing so a minimum amount of money is transferred to the US.

This tidbit came from JobDestruction.com