RobertB4444
Expert Alumni

Retirement tax questions

Foreign contractors have different rules.

 

If they perform services inside the United States then they are subject to 30% withholding and you need to file form 1042-S instead of form 1099-NEC.  You should also have gotten form W-8BEN or W8BEN-E from the foreign individual or company that did the work instead of form W-9.  

 

If the services they performed were outside the United States by non-citizens then they are not subject to US tax reporting rules so you don't need to submit a 1099-NEC for them.  You need to have good documentation of your payments but no 1099s need to be issued.

 

@citation27 

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