Do I have to prepare a 1099-Misc for a foreign contractor

1099-NEC Requirements for Foreign Contractors

Small Business Tips, Taxes

If the foreign contractor is not a U.S. taxpayer, and all of the contracted services were performed outside the U.S., a Form 1099 is not required. Instead, you will need to ask the contractor to complete a Form W-8BEN.  The Form W-8BEN certifies that the foreign contractor is not a U.S. taxpayer.  The Form W-8BEN is never submitted to the IRS, however, it needs to be held in your files in case of an audit.  If you are audited by the IRS, the Form W-8BEN will support your reasoning for not issuing a 1099.

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