Accounting Question: NON-US residents & 1099

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  • virtuallyloud
    Registered User
    • Oct 2006
    • 9
    #1

    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-
    Tags: None
    • fetishblog
      Confirmed User
      • Sep 2005
      • 5995
      #2
      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.

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        • virtuallyloud
          Registered User
          • Oct 2006
          • 9
          #3
          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-

            Comment

            • amateurcanada
              Confirmed User
              • Jul 2001
              • 3766
              #4
              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.

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                • virtuallyloud
                  Registered User
                  • Oct 2006
                  • 9
                  #5
                  Thank you-

                  I appreciate the help...

                  VL-

                    Comment

                    • StarkReality
                      Confirmed User
                      • May 2004
                      • 4444
                      #6
                      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

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