taxation of foreign contractors?

Question

How do I tax foreign contractors working from outside the US for a US Corporation?

How do I show it in the books?

Answer 1

I could be totally wrong here, but! Contractors are independent, therefore you shouldn't have to tax them at all, you don't tax your US contractors do you? I would suggest calling the IRS directly as there may be some required documentation that is different than your standard required documents for 1099's in the US. There also may be some proof of identity type thing...the form number has slipped my mind though, that you may need to keep a record of. The IRS is very good for questions like this. But you must give them time to verify the answer they give is correct.