I’ve actually run into this myself when working with vendors up in Canada. So here’s the thing: QuickBooks' built-in 1099 e-file system is really set up for U.S. addresses only. It doesn’t support foreign postal codes (like the Canadian alphanumeric codes), and there’s no dedicated country field in their 1099 module. That’s why you’re seeing those zip code limitations.
When I had to send a 1099-NEC to a U.S. citizen living in Canada, what worked for me was to prepare the form manually outside of QuickBooks, using IRS fillable PDF forms. You can grab those directly from the IRS website (search for 1099-NEC fillable PDF), fill them out with the correct foreign address, and then send copies as required. Then, in QuickBooks, I still marked that vendor as a 1099 vendor so my reporting stayed clean, but didn’t use the built-in e-file option.
If you really want to file electronically, some people use a third-party service (like Track1099 or Tax1099), which supports foreign addresses and will handle the IRS e-file requirements properly. Both have free or low-cost options depending on volume, so it won’t break the bank.
I’d also recommend checking with your tax advisor just to double-check your exact situation. But in general, QuickBooks e-file doesn’t handle this case well out of the box.
