IRS forms for an individual contractor located overseas

[lala_cristobal]

We have an LLC and paying individual contractor located overseas (non US citizen).

1. Which tax form do the individual needs to fill out? When should this be submitted to IRS, at the start of their contract? Do they need to submit this form yearly?

2. How can this be declared in the company tax form? Do we need accomplish other IRS forms?

Thank you!

[K M W]

Generally speaking you would report amounts paid to contractors on a form 1099NEC; however, there is an exception to this requirement. If the contractors is not a U.S. citizen AND the services are provided outside the U.S., then you do not have to file the 1099NEC for that contractor.

Even if you don't have to file a 1099NEC for the foreign contractor, you can still deduct the expense on your business tax return. Just make sure to keep adequate documentation of the expense, similar to any other deductions you take.  In your situation, I would recommend keeping a copy of the original signed contract as well as keeping documentation of the invoices you receive and proof of payment to the contractors.

[lala_cristobal]

Thank you for your response!