The short answer is, sometimes. You may be required to file a 1099 form for specific payments that you made to a foreign corporation. Companies in other countries that generate sales in the United States must pay U.S. taxes on those specific profits. The Internal Revenue Service will ensure that it receives its owed taxes when a hiring company issues a 1099 for foreign entities.
The IRS specifically requires businesses to issue a 1099 form to most foreign and/or domestic service providers that they paid $600 or more within a calendar year. Yet you generally will not issue 1099 forms to foreign or domestic corporations that exceed the $600 in payments.
You will only file a 1099 form if a foreign corporation provides your business with any medical or legal services.
People Also Ask
- Can I file a W-2 form for payments made to a foreign employee working remotely? – Yes, and you must withhold taxes and report them for all of your W-2 employees. The taxes that you withhold on an employee’s behalf will be based on where they live.
- Can I file a 1099 form for payments made to a foreign person? – Yes, but you must have paid them $600 or more in the calendar year with a temporary TIN (ITIN) for the services that they provided within the United States.
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This article was updated on Dec. 7, 2025 to keep its information as fresh as possible. We update this article every six months, before and after tax season, to keep current with any changes.