My friend in USA who is a US citizen wants to hire her cousin from her native country and will be paying the relative as independent contractor.
She does not have a registered business under her name. She's only working as a freelancer and giving her relative the cut when she seeks help.
Does IRS like one payment method over other or they simply don't care as long as she can show the receipts?
It's only consulting work at the moment, so most of the communication is done over phone. Should they start engaging in written communication to keep records of the work done?
Is it okay to pay in one go to save money-transferring fees? Can she pay in advance?
Basically, she has not outsourced work in previous years, and she wants to avoid any red flags.