"Line 11 instruction states that I may need to fill out 1099-NEC or 1099-MISC, so in my case the contractor is foreign, so I may not need to do that."
Perhaps I should have clarified --- the above is true ( i.e. you do not need to issue 1099-NEC or 1099-MISC ) if , and only if .
(a) the contractor ( person or entity ) is foreign and
(b) the work is performed abroad. In your case both conditions are satisfied --per your earlier post -- hence it is true.
Regarding records to withstand an audit ( in that rare case ), most business would have the following ---
1. work contract i.e. work to be accomplished signed by both the contractor and the contractee showing the specifics of the performance , the total price for the effort and payment schedule , how to pay ( bank deposit / wire transfer etc. );
(2) invoice by the performing person/ entity;
and
(3) payment evidence -- check / bank transfer etc. till the end of the year ( if the contract / work persists beyond the end of the tax year). This is no different than what you would do for an US based contractor -- the only wrinkle here being that it is a contract involving foreign worker/ work site / entity.
Does this make sense ?
Is there more I can do for you ?
pk
