As a virtual accountant for creative business owners, I see a lot of really impressive remote employer/contractor relationships. 

As my clients continue to grow their business, they often time seek virtual assistants and other talented contractors abroad.  One question that always comes up around tax time is “Do I have to prepare a 1099-NEC for a foreign contractor?“.

Do I have to prepare a 1099-NEC for a foreign contractor?

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.

Amy Northard, CPA

Amy Northard, CPA

I’m Amy Northard, and I’m the founder of The Accountants for Creatives®. My team and I understand that the last thing you want to think about is taxes and bookkeeping. That’s why we handle the financial side of things for creatives across the US, giving you the freedom to get back to the work you love.

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  1. Julienne DesJardins December 22, 2017 at 5:48 am

    Wow. I’ve asked 2 CPAs about this (one of my subs is in Canada), and they both said I needed to do nothing. Never heard of this form. Thank you.

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