Accounting Question: NON-US residents & 1099 - GoFuckYourself.com

virtuallyloud · 10-16-2006, 12:38 PM

I was hoping someone could help me with an accounting question:

I hire people overseas as independent contractors along with people from the US. All contractors fill out W9 forms and sign IC Agreements. The company is based in the US and all employees work from their home (US and NON-US).

At the end of the year I cannot send the NON-US residents a 1099 because they do not have a social security number.

How do I account for these workers? Is this just written off as a general business expense?

For some reason no CPA that I have spoken to can answer this.

Thanks in advance.

VL-

fetishblog · 10-16-2006, 02:35 PM

I do know that US has Tax Treaties with at least 50 countries, which means that any contractors you hire from those countries may have to pay the IRS for any money coming from the US.

virtuallyloud · 10-16-2006, 06:14 PM

Thanks for the reply. My concern is how do I report the income to the US government? Lets say I paid out 20k overseas. When I go to pay my taxes I do not want to be taxed on the 20k. What do I tell the IRS I did with the money.

VL-

amateurcanada · 10-16-2006, 07:30 PM

Quote:

Originally Posted by virtuallyloud

Thanks for the reply. My concern is how do I report the income to the US government? Lets say I paid out 20k overseas. When I go to pay my taxes I do not want to be taxed on the 20k. What do I tell the IRS I did with the money.

VL-

Its considered an expense, so a date of payment and a receipt of proof should work.

virtuallyloud · 10-16-2006, 09:47 PM

I appreciate the help...

VL-

StarkReality · 10-17-2006, 04:25 AM

Quote:

Originally Posted by amateurcanada

Its considered an expense, so a date of payment and a receipt of proof should work.

Yep, that's what I thought as well

10-16-2006, 12:38 PM	#1
virtuallyloud Registered User Join Date: Oct 2006 Posts: 9	Accounting Question: NON-US residents & 1099 I was hoping someone could help me with an accounting question: I hire people overseas as independent contractors along with people from the US. All contractors fill out W9 forms and sign IC Agreements. The company is based in the US and all employees work from their home (US and NON-US). At the end of the year I cannot send the NON-US residents a 1099 because they do not have a social security number. How do I account for these workers? Is this just written off as a general business expense? For some reason no CPA that I have spoken to can answer this. Thanks in advance. VL-

10-16-2006, 02:35 PM	#2
fetishblog Confirmed User Join Date: Sep 2005 Location: Your mom is my favorite pornstar!#% Posts: 5,995	I do know that US has Tax Treaties with at least 50 countries, which means that any contractors you hire from those countries may have to pay the IRS for any money coming from the US. __________________ Fling.com doesn't steal your traffic and sales unlike some other dating companies. I promote them, and so should you!

10-16-2006, 06:14 PM	#3
virtuallyloud Registered User Join Date: Oct 2006 Posts: 9	How do I report the income.. Thanks for the reply. My concern is how do I report the income to the US government? Lets say I paid out 20k overseas. When I go to pay my taxes I do not want to be taxed on the 20k. What do I tell the IRS I did with the money. VL-

10-16-2006, 09:47 PM	#5
virtuallyloud Registered User Join Date: Oct 2006 Posts: 9	Thank you- I appreciate the help... VL-