We have a contractor who did work for our sister company in the UK. She was originally paid out from our company's fund, but we then billed that to our sister company. Does that mean that we don't 1099 this person? Your help is greatly appreciated.

Per the IRS, "some payments are not required to be reported although they may be taxable to recipient. Payments for which a Form 1099-MISC is not generally, would be payments to a corporation."

For additional information, please refer to the following IRS publication.

http://www.irs.gov/pub/irs-pdf/i1099msc.pdf

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