A business is required to report payment of over $600 annually on Form 1099 if it hires an independent contractor in the US. If US based companies hire a foreign independent contractor there is no requirement for them to file an IRS 1099 Form to pay a foreign contractor. However, they are required to withhold and pay taxes in the US depending whether the independent contractor income is US-sourced or not. According to the IRS, the source of income paid to independent contract