JV tax questions

Hi BHW, I am wondering if someone would help me out. I have a question on how to file taxes if doing a joint venture (I live in the US). For example purposes I?ll make this simple as I can (the figure below are random numbers I just made up).

Let?s say I am doing a CPA JV. For 2011 I made 10k to my CPA account and so we split profit 50/50. 5k is paid directly to my partner via paypal as a marketing service. Now, when filing taxes, I can simply write off 5k as a business expense so I wouldn?t be charged for all 10k correct? Do I need to file anything else besides a Schedule C? Is my partner required to send me an invoice or file something to the IRS if living in the US? What if partner resides outside of the US?

I appreciate your help!!

You need to fill out a 1099 on him and send both him and the IRS a copy.

If he is not a US citizen you might not need to do the 1099 but I believe it depends on what country he is in. The US has different tax agreements with different countries.

I would also like to know the answer to this.