Hi, great board!

If a US sole propriatorship hired independent contractors aborad for projects, how does the pay to these contractors get filed in schedule C? US proprietor gets paid by a US company). All services were
performed abroad by foreign citizens. Is it correct that the US sole proprietor does not
have to withhold taxes for these contractors, but how does this get reported on the US schedule C. My current guess is, that they are reported on
line 11 (Contract labor) - but that would raise a flag with the IRS
because there is no 1099 filed for these payments - or is there? How about forms 1042s with excemption code 03 in "line" 6?

Thank you for your expertise,
bluebunny