Discussion:Payments to foreign companies
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Discussion Forum Index --> Tax Questions --> Payments to foreign companies
| 25 January 2008 | |
| Is there a tax/legal consequence for U.S. S-Corp to pay a foreign company (in India) for providing consulting services to the company? The foreign company cannot provide a W-9 as their tax ID are not relevant here. Is the US company held accountable for paying foreign companies in anyway? Or does it matter more if the services they provided were here in U.S. or in India? Appreciate your input!! | |
| January 25, 2008 | |
| As long as the services were provided out of the country, there is no requirement to issue 1099s or 1042-S. To confirm this requirement, see instructions for these two forms. | |
Ksnoopytax (talk|edits) said: | 25 January 2008 |
| You may want to start with Sec. 881 and Sec. 1442. It doesn't sound like you will have a reporting requirement though. | |
| 25 January 2008 | |
| Thanks BEGooding and Pegoo. You were helpful. But if services were here, should we still report on 1042-S if they are corporations (foreign corporation), not individuals. Those forms indicate individuals. | |
| 14 February 2009 | |
| If the services are provided overseas I understand that there is no backup withholding. Would it be required though to document that by requesting a W8?
Would it make any different if the payment is made to a foreign company providing services abroad to a US bank account? | |
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