1099 to a Foreigner

[Bart]

Can you issue a 1099 to the citizen of a foreign country?

[PapaJoe]

Yes.

[Bart]

Yes.

What do you use for a social security number?

[Pacun]

His own number (I mean, the person that got paid). I am a citizen of another country and I have a social security number.

My suggestion is that you state your questions with details so you don't ask one question at a time.

[Bart]

His own number (I mean, the person that got paid). I am a citizen of another country and I have a social security number.

My suggestion is that you state your questions with details so you don't ask one question at a time.

Sorry, I will try to be more clear. I was trying not to take up too much of everyone's time. I have a client that sells an item over the internet thru brokers. He is a u s citizen and has a social security number and federal i d number. All of the borkers he works thru are in other countries. He pays them 50% - 60% of the sale amount as a commission. He wants to deduct those commission payments. Normally on commissions, I prepare 1099's for those receiving the commissions if they are unincorporated. These foreign brokers are unincorporated but have no reason (and are not interested in) obtaining social security (or ITIN) numbers. I am wondering if we have to give them 1099's and if so how without social security numbers. Can he deduct the commission expense?

[Pacun]

The rule is that if you have subcontractors that do not have a valid number or a non-existent number, you have to withhold 35% of what you pay them and send it to the IRS. (please verify % amount). So, if you pay $1,000 to a person without a number, you have to send him $650 and $350 to the IRS. Most people will not want to deal with him if this is brought to the table.

Since the year is gone, he might not be able to deduct it.

I think some other people will reply to your posting with other approaches.