[DamenATDMB]

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!

[IntlTax]

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.

[MukatA]

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]

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%.

[IntlTax]

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

[DamenATDMB]

Excellent. Thanks for the help.

[AtlantaTaxExpert]

Excellent answers; nothing to add.

[IntlTax]

Glad you agree.