We are a private company in the USA. We paid rent to a person that lives outside of the USA. What form do we file? Do we issue a regular 1099 for rent paid or do we use a different form because he is out of the country?

Thanks in advance!

Generally Form 1099 is not used to report payments to foreign persons. Instead, Form 1042 is used. You need to get a W-8 from the foreign person (you should have already done this). If they give you a W-8BEN, then you need to withhold 30% (or lower treaty rate as specified in the W-8). If you are required to withhold the tax and you fail to, you can be held liable for the tax. If the foreign person provides you with a Form W-8ECI, then I don't believe you need to withhold.

DamenATDMB:
It is not possible to answer your question unless more info is provided.
1. Where is the property situated?
2. Is the person whom you paid rent is a U.S. citizen or resident?
3. How did you make the payment? Did you deposit in a bank account in the U.S.

DamenATDMB:
It is not possible to answer your question unless more info is provided.
1. Where is the property situated?
2. Is the person whom you paid rent is a U.S. citizen or resident?
3. How did you make the payment? Did you deposit in a bank account in the U.S.?


1. The property is here in AZ.
2. The person is not a US citizen.
3. We made payment by check and W/H 30%.

You are in good shape. Just file Form 1042 and 1042S.

Excellent. Thanks for the help.

Excellent answers; nothing to add.

Glad you agree.