If you hire a non-U.S. citizen who performs any work inside the United States, you’ll need to file a 1099. It is your responsibility to verify that the worker is indeed a non-U.S. citizen and performed all work outside the United States. For that purpose, in the future you might want to have that foreign worker fill out, sign and return Form W-8BEN.
Even if you miss the first 1099 deadline of January 31, contact your CPA and make sure to finish up the process as soon as possible. If you can show reasonable cause for your delay, it could save you major penalties that could arise from not filing the forms on time. Moving forward, make sure to get a Form W-9 from all your vendors before sending out payments. This will save you a lot of headaches next January so you don’t have to track down their mailing addresses or EINs.
The good news: Most accountants will provide this service affordably and efficiently for you during the month of January so you can stay focused on your New Year’s resolutions and making money rather than filling out paperwork.