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Question: How to file the income paid to non resident alien in foreign country?

We are an organization in US. We want to outsource software coding to a firm in India (so that makes the work as NON US work and the income to be paid to non resident aliens). Now we are paying them for the software they develop for us. How do we report this to IRS? What form do we need to file for reporting income given out so that they pay taxes in their own country but have nothing to do with US taxing while we still get to write it off in our expenses to IRS.
Well what form should we use in that case so that we report income that we are giving out to the non resident alient company (registered in India) as an expense to us and get it written off to IRS?

the work would be done in India (non US work) and the payment would be made to non US person (citizen of India, company registered in India, so non resident alien)

Answer: They are simply paid as any other supplier of goods or services. This is not an employee income issue, it is a contractual issue with another company.

As a purchased product, it is deductible on your side, and whether they pay income tax in India is, quite frankly, not your problem, any more than it is if a US supplier fails to properly deal with their own tax situation.

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