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Nonprofit Law/1099s and other IRS forms for foreign contractors and grantees


I am trying to figure out whether or not I need to issue 1099s (or some other IRS form like 1042-S) for:

1-Foreign contractors (all work performed outside of the US)
2-Foreign grantees (all established legal entities in their various home countries, but I don't necessarily know what kind of entity)

The payee/grantor is a US based 501(c)(3) corporation.

(p.s. I just discovered this website- what a great resource.  Thanks very much for what you do!)

I have in my profile that this free forum is only for general questions relating to IRS federal exemption issues of 501(c)(3) organizations. Yours is a question about reports for contractors which applies to both for-profit and nonprofit.  Even though your question is beyond the scope of this forum, I will give you the link
and that explains when income is taxable.  If it is taxable, then the 1099-Misc would be issued.  You certainly can issue 1099s in any case if you want to cover yourself.

As to foreign grantees, see the IRS publication at for
details about international grants to and international activities
of U.S. exempt organizations.

Harvey Mechanic, Attorney at Law -

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.  

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Harvey Mechanic


DO NOT GIVE ME INFORMATION THAT YOU WANT KEPT CONFIDENTIAL. I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "" without the quotes and then add your search terms before hitting enter.


I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.


B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.

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