Question on International Consultants and Taxes

[TheAllusionisst]

I had a quick question for those of you who contract out with international artist/contractors, I will of course have to investigate it through official channels, but wanted to get an idea of the process.

 

I am wondering if an american business uses an international contractor outside of the US for services, do you send them and Uncle Sam something similar to a 1099-MISC form and it is up to them to report it, or do you send it to their national department of revenue, or does our IRS forward the proper information to the country the consultant/business you used resides in?

 

I don't know much about the international scene, it would seem that all the governments would work together to make sure all incomes are reported, but perhaps it varies from country to country, or cooperation at this level doesn't exist.

 

Thanks in advance, I am trying to get a grip on what might be involved in this scenario. Wish I had taken Business 101 in college

[innerdream]

Now don't quote me on this. I think you can break it out into a "product" verses a service or hourly wage. In other words have them invoice you as x $ for x product. Then when you do your taxes it can be on a schedule C. I would check with an accountant on this.

[TheAllusionisst]

Thanks for the input, obviously will have to look into it through official channels, so that I know for certain.

[rotten42]

I had a quick question for those of you who contract out with international artist/contractors, I will of course have to investigate it through official channels, but wanted to get an idea of the process.

 

I am wondering if an american business uses an international contractor outside of the US for services, do you send them and Uncle Sam something similar to a 1099-MISC form and it is up to them to report it, or do you send it to their national department of revenue, or does our IRS forward the proper information to the country the consultant/business you used resides in?

 

I don't know much about the international scene, it would seem that all the governments would work together to make sure all incomes are reported, but perhaps it varies from country to country, or cooperation at this level doesn't exist.

 

Thanks in advance, I am trying to get a grip on what might be involved in this scenario. Wish I had taken Business 101 in college

 

 

 

well I work as a consultant doing renders for companies in the US. I always get the request by their acconting departments to fill out the form. I just remind them that I'm Canadian and they then say that I don't need to fill it out. I don't know idf that helps or not.