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When to Use 1099-NEC vs. 1042-S for Foreign Entities
January 22, 2025
Q. My company received an updated form W9 from a US company we've done business with for several years. W9 Line 1 displays a company located outside the US, and the EIN provide begins with "20" rather than "98". I requested a copy of the beneficial owner's form W8 for safe measure. Should we report payments on 1099-NEC, or 1042-S?
A.
(Answered by IOFM's third-party tax expert)
In order to know whether to report your payments on 1099-NEC, or 1042-S, you'll need to determine if this entity is a…
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