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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3100
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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It's not really a tax question. But I have questions about

Customer Question

It's not really a tax question. But I have questions about the reporting of international transfers of funds.
JA: The accountant will know how to help. Please tell me more, so we can help you best.
Customer: OK, I have an employee in the Philippines who works remotely and I send her money by a money transfer service. It was never an issue in the past because the amount were not that much so I never thought about it.
JA: Is there anything else important you think the accountant should know?
Customer: Last year 2015, I loaned her some money to start a small business. It was not a lot of money initially, around $5000. However, as time went on, she needed more and more money for unforseen expenses. Ultimately, I sent her about $21,000 over the course of the calandar year, including her contract pay for service and the money loaned. I'm worried that I might run afoul of reporting requirements!
Submitted: 4 months ago.
Category: Tax
Expert:  Barbara replied 4 months ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

There is no IRS reporting requirement (i.e., 1099-MISC) from you to the IRS because she is living and working remotely in the Philippines. You do need to obtain a W8-BEN from her to keep for your records as documentation. The W8-BEN does not get sent to the IRS.

https://www.irs.gov/uac/form-w-8ben-certificate-of-foreign-status-of-beneficial-owner-for-united-states-tax-withholding

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Expert:  Barbara replied 4 months ago.

Just following up with you to see if you have any other questions. If so, please let me know so I can assist you further.

Best regards,

Barb