Home Improvement Contractor - Licensed Contractors - Does a non-US Independent Contractor need to be issued a 1099 from a US company?

Does a non-US Independent Contractor need to be issued a 1099 from a US company?

Are there any special processes when paying a foreign independent contractor?

The applicable IRS publication is 515. The withholding/reporting rules apply ONLY if the person is a US person *OR* if they did the work in the USA. If the work is done by a foreign person in a foreign country, you do not issue anything. You do have a due diligence requirement, so ask them to sign a document attesting that they are not a US person and that they did the work outside the US. Have them sign under penalties of perjury and save the document with the contract and proof of payment so you can deduct the payment from your taxes. (See IRS form W-8Ben and create a document that states the OPPOSITE.)