Can I File a 1099 Form for Payments Made to a Foreign Corporation?

The short answer is, sometimes. You may find yourself 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 ensures 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.

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