If your contractors are outside U.S., you use a W-8BEN instead of 1099. What do you answer for question "It looks like you'll need to send 1099 forms. Did you send them?"

Answer "Yes" - you met the 1099 reporting requirements (W-8BEN) for foreign contractors,

How do I file a 1099 to a foreign contractor?

As long as the foreign contractor is not a U.S. person and the services are wholly performed outside the U.S., then no Form 1099 is required and no withholding is required.

You should get a form W-8BEN signed by the foreign contractor.  By signing Form W-8BEN, the foreign contractor is certifying that he or she is not a U.S. person. The Form W-8BEN is not filed with the I.R.S. It is kept on file with the U.S. payor in case the U.S. payor is audited. If audited, the Form W-8BEN supports why no Form 1099 was issued and why no tax was withheld.