In general, no Form 1099 is required for payments to foreign contractors for services performed outside the U.S. Sometimes taxpayers get concerned about how to substantiate the deduction if no Form 1099 needs to be issued to the foreign contractor. The simple answer is that you substantiate the deduction the same way you substantiate all other deductions --- by maintaining books and records evidencing how much was paid, why it was paid, and to whom... Read more →