Out of the Country Consultant tax liabilities?

mm in LA · November 2005

We are hiring a consultant from Mexico who has a B1/B2 visa allowing us to pay the Mexican employer for their services. We are trying to determine what is our tax lability if any in this case? They pay their taxes in Mexico so do we need to deduct any taxes here in the US?

TN HR · November 2005

You treat this the same way you would any ordinary 1099 contractor (except you don't issue a 1099).

mm in LA · November 2005

Thank you so much; is there any information of which you are aware(IRS or other)that I can give to my accounting dept. to support this status?

marc · November 2005

You are in an area that has dozens and dozens of IRS regulations - I would suggest you contact your Tax prep person for an answer supported by someone's professional liability insurance. Lots of twists in this area that could cause you some fines and penalties.

mm in LA · November 2005

Thanks Marc, greatly appreciated!

TN HR · November 2005

On second thought, let me withdraw my initial off-the-cuff suggestion. I think Marc is right, however, I just cannot imagine this being overly complicated.

Out of the Country Consultant tax liabilities?

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