How to expense labor done outside the USA?

[lorax]

I've got a handful of contractors doing work for me that live in other countries. My accountant is off on vacation until after Thanksgiving but I feel a need to know this before she gets back. How should I claim the $$ I pay these contractors and will I get taxed on it because they're not US Citizens?

[paladin]

Although I am not an acountant, why not just ask the contractors for a paper invoice?

[lorax]

I think a paper invoice would be find for company records - but I'm wondering if there's anything special that needs to be done like some IRS form for tax purposes. I haven't had much luck navigating the IRS website so I'm avoiding going there but suppose I ought to soon.

[Hawkgirl]

Hey - what did you find out? Do you have to do more than just request invoices? C'mon, share the knowledge! ;)

[lorax]

poke poke *ouch!* ;)

While I haven't checked with my accountant yet (she should be back this week) I've received some good info which corroborated what I thought - which is if the contractors are outside the USA all I should need is some proof of services rendered and payment for those services. It's an expense - plain and simple.

[Hawkgirl]

I kinda figured that would be the case ... but with the IRS, you just never know! :) Thanks for the update.

[anallawalla]

For my US clients I have only had to email them an invoice and in one case complete an Independent Contractor contract. Never any tax forms. The client's paper trail is the payment mechanism, e.g. bank transfer, PayPal etc. You are just buying a service.