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In the US, the IRS requires those making certain types of payments to collect and validate information about the payee. TaxBit's Digital W-9/W-8 product aims to assist you with this information collection process.

Forms W-9, W-8BEN, W-8BEN-E

The IRS has furnished the following forms to help payers classify payees as U.S. or Non-U.S. persons and gather any information needed to complete Form 1099 reporting.

  • Form W-9

    • A standardized IRS form that documents, under penalties of perjury, an individual or entity is a US Person and collects the user’s Name and Tax Identification Number (TIN) and other information needed to complete Form 1099 reporting.

  • Form W-8BEN

    • A standardized IRS form that documents, under penalties of perjury, an individual is not a US Person.

  • Form W-8BEN-E

    • A standardized IRS form that documents, under penalties of perjury, that an entity is not a US Person.

A Substitute Form W-9, W-8BEN, or W-8BEN-E can be used interchangeably with an IRS Form W-9, W-8BEN, or W-8BEN-E.  The Forms W-8/W-9 generated by TaxBit's Digital W-9/W-8 product are Substitute Forms that meet the relevant IRS criteria.

US and Non-US Persons

There are specific criteria and tests to determine whether a payee is a US or non-US Person.

A US Person is defined as:

  • Individuals

    • US citizens.
    • US permanent residents.
    • Individuals who meet the Substantial Presence test and become US tax residents for spending a certain amount of time in the US.

  • Entities

    • A partnership, corporation, company, or association created or organized (i.e., incorporated or registered) in the United States or under the laws of the United States.
    • An estate (other than a foreign estate).
    • A domestic trust (as defined in Regulations section 301.7701-7).

TaxBit's Digital W-9/W-8 product can assist you with determining whether a payee is a US Person.

Updated 6 months ago