A friend of mine is hiring a company back in India to do software work. Now this would classify the Indian company as a non resident foreign alien with no SSN or TIN. Plus the services are performed outside USA. So the company in India pays taxes on this earned income back there but how does my friend write it off to IRS as an expense related to paying to non resident alien for services performed outside USA. I guess what I am looking to know is what form does he use and what details does he need to fill it for the foreign organization to report his expenses?
Any help would be greatly appreciated Harry