Services Paid in US Dollars and Euro's: How to Report

Question

We paid a US Company for a 1099 reportable service in both US dollars and Eurodollars. The Eurodollar payment was for services outside of the US. I wanted to check the following: 1. I wanted to confirm that unlike the 1042 reporting requirements where services outside the US are not reportable, that the Eurodollar payment is 1099 reportable. 2. Assuming the Eurodollar payment is 1099 reportable, I wanted to check and see if there are any special rules we need to know about where non-US currency is concerned. Would we just use the exchange rate in effect on the date of the payment?

Answer

We'll start with the basics and then get into the meat of the answers to your questions and as follows:

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