I'm running a small U.S. business. Some users make profit by referring customers to purchase services from me. I've been told that I have to send form 1099 to both users whom making such profit from me (Affiliate Users), as well as the IRS. However, I have couple of questions regarding that form specifically. I'd appreciate it if someone could shed some light on the following points:
- Am I required to send form 1099 to non-US citizens who are not even residing in the US? Since they're not required to file US taxes, do I still have to send the form to them?
- Is it fine to expose my ITIN (taxpayer identification number) to individuals or companies who I send the form to them. Since the form requires me to write my TIN/EIN, what would be the risks of this and what precautions should be taken to avoid inappropriate/illegal use?
- I send payments via PayPal and wire transfer. Should I send form 1099-MISC or 1099-K?