1099-NEC

Hi there, @jpress6023. 

I'm happy to pass along some information about the 1099-NEC.

If the foreign contractor is not a U.S. person and the services are wholly performed outside the U.S., then no Form 1099 is required and no withholding is required.

WIth that said, most companies get a form W-8BEN signed by the foreign contractor. By signing Form W-8BEN, the foreign contractor is certifying that he or she is not a U.S. person. The Form W-8BEN is not filed with the IRS. It is kept on file with the U.S. payer in case the U.S. payer is audited. If audited, the Form W-8BEN supports why no Form 1099 was issued and why no tax was withheld.

For more information about handling a 1099-NEC, check out the guides I've included below.

• Reporting Payments to Independent Contractors
• Instructions for 1099-NEC

Please know that when in doubt, you can always contact the IRS directly to ensure your company is filing the right forms. 

I'm here if you have any additional questions or concerns. Take care!