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.
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.
- 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.
- A standardized IRS form that documents, under penalties of perjury, an individual is not a US Person.
- 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.
There are specific criteria and tests to determine whether a payee is a US or non-US Person.
A US Person is defined as:
- 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.
- 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 10 months ago