How to make a payment to an international person for services or work they have done in their country. This payment is not taxable in the USA but seems possible that it could trigger a tax liability for the payee and/or my employer in their country.

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In a case such as you describe, you are correct that there is no U.S. tax liability, withholding or IRS reporting responsibility on such payments. Many countries have an income tax; many also have treaties with other countries designed to avoid double taxation. (But as you say, in your situation, no U.S. tax is withheld.)

While individuals may be required to pay income tax on earnings from a foreign source, we are not aware of a reporting responsibility by U.S. companies to other governments' revenue or taxation authorities.

Perhaps you can find more information on the question on The Complete Worldwide Tax & Finance Site or, regarding European Union countries, the European Union Web site.

You may want to contact a tax consultant or attorney with transnational experience.

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