This section explains the general tax interview sections and what they require.
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Registering for Tax and KYC purposes
Consent to Electronic Signature
Consent for Electronic Tax Information Report
How to prevent or stop Backup Withholding Tax
Disregarded Entity - Single Member
Foreign Tax Identification Number (ITIN)
Tax Identification Number (TIN)
Getting started
The interview is designed to obtain the information required to complete either an IRS Forms W-9, W-8BEN, W-8BEN-E or W-8ECI. We recommend all payees providing services to us complete this interview. This information may also be used for tax information reporting. Answer all questions and enter all information requested during the interview. Use caution to avoid misspellings or entering incorrect Tax Identification Numbers, which can result in an invalidated tax form.
Registering for tax and KYC purposes
Individual or Business?
If you are preparing tax information as an Individual, Sole Proprietor or Single-Member LLC, select the "Individual / Sole Proprietor or Single-Member LLC" radio button. If you are preparing information for a single-member LLC see Single Member LLC’s below. If you are preparing tax information on behalf of a legal entity such as an S or C Corporation, Trust, Partnership or Limited Liability Company (LLC), select the "Corporation, Trust, Partnership or LLC (other than a single-member LLC)" radio button.
Single member LLC's
If a single-member LLC does not elect to be treated as a corporation, the LLC is a "disregarded entity," and the LLC's activities should be reflected on its owner's federal tax return. Per IRS: "For federal income tax purposes, a single-member LLC classified as a disregarded entity generally must use the owner's social security number (SSN) or EIN for all information returns and reporting related to income tax. For example, if a disregarded entity LLC that is owned by an individual is required to provide a Form W-9, Request for Taxpayer Identification Number and Certification, the W-9 should provide the owner’s SSN or EIN, not the LLC’s EIN.”
For more information, please review here
Enter the single member's legal name in the legal name field. Enter the LLC's name in the DBA field
Personal Information
This field has been pre-populated using the name provided during enrollment with us and completing a legal agreement. Changes may require an amendment to your legal agreement.
Enter your First and Last name as they appear on either your Social Security card or your income tax return. You can also enter your business, trade, or "doing business as" (DBA) name on the "Business or trade name" line.
Enter your country of citizenship. If you are a dual citizen, enter the country where you are both a citizen and a resident at the time you completed this form. If you are not a resident in any country in which you have citizenship, enter the country where you were most recently a resident. Note, if you are a United States citizen, you should complete form W-9 even if you hold citizenship in another jurisdiction.
Enter your Date of Birth. This is generally required if your tax residency country does not have a tax identification system
Business Information
This field has been pre-populated using the name provided during enrollment with us and completing a legal agreement. Changes may require an amendment to your legal agreement.
If your business name belongs to a trust, partnership, or corporation, use the following:
• Trust – The name as it appears on the trust deed
• Partnership – The name as it appears in the partnership agreement
• Corporation – The name as it appears in the certificate of incorporation, or other legal document that formed the corporation
You can also enter your business, trade or "doing business as" (DBA) name on the "Business or trade name" line.
Permanent Address
Your permanent residence address, the address in the country where you claim to be a resident for purposes of that country's income tax, is determined by some or all of the factors below. It is the address where the following occur:
• You own or rent your main home–where you spend most of your time
• You intend to return to it if you work, travel, or live elsewhere temporarily
• You maintain your driver's license
• You register to vote
• You maintain your primary bank account(s)
• You have your strongest family ties
• Your children live and attend school
• You own or run your main business
When entering your permanent address, if you checked the box for your mailing address being different from your permanent address, enter your mailing address here.
Consent to Electronic Signature
You may be required to sign your tax identity document. If this is the case, the IRS requires that we obtain your consent to sign your tax identity document electronically. If you do not provide your consent, at the end of the interview you may be required to print the form, sign it with a blue or black pen, and mail it to the address that is provided.
Consent for Electronic Tax Information Report
We can provide an electronic version of your 1099 or 1042-S information return. To do so the IRS requires that we obtain your consent. Once electronic forms are available, providing your consent will allow you to retrieve an electronic version of your Form 1099 or 1042-S from your account. Otherwise your withholding agent will mail a printed copy of the appropriate information return by the due date, to the address you provide during the interview process.
If you do not provide your consent, we will mail a printed copy of your form.
Tax Status
This question in the tax interview asks you to determine whether you are a U.S. person or a non-U.S. (foreign) person for U.S. income tax purposes. Typically, if you file an income tax return with the IRS, using a form such as a 1040, 1041, 1065, or a form in the 1120 series, then you should select YES for this question.
If you do not file an income tax return with the IRS, do not reside in the U.S., and are not a U.S. citizen, then you should select NO for this question.
Completing a W-9
Federal Tax Classification
Select the appropriate tax classification for your legal entity, from the first drop-down box. If your business is a limited liability company (LLC), select "LLC" from the second drop-down box. For example, if you are an LLC that is treated as a partnership for federal tax purposes, select "Partnership". If you are an LLC that has filed a Form 8832 or a Form 2553 to be taxed as a corporation, select "C-Corporation" or "S-Corporation". If you are an LLC that is disregarded as an entity separate from its owner under Regulation section 301.7701-3 (except for employment and excise tax), do not select from the LLC drop down box unless the owner of the LLC (required to be identified on the "Legal entity name" line) is another LLC that is not disregarded for federal tax purposes. If the LLC is disregarded as an entity separate from its owner, enter the appropriate tax classification of the owner identified on the "Legal entity name" line.
Tax Identification Number
Your TIN is either your Social Security Number (SSN) or your Employer Identification Number (EIN). You can find your SSN on your Social Security card. You can find your EIN on the CP575A notice from the IRS that assigned your EIN. Be sure to verify that the TIN you enter is your correct TIN.
Backup Withholding Tax (BWHT)
Select this item if the IRS has notified you that you are subject to BWHT.
BWHT is a specified percentage (currently 24%) withheld from your payment, and is paid directly to the IRS. Backup withholding may be required for several reasons, including but not limited to:
• an invalid SSN or EIN
• an IRS backup withholding order.
How to prevent or stop Backup Withholding Tax:
If you receive a notice from the IRS notifying you that the TIN you gave is incorrect, you usually can prevent backup withholding from starting or stop backup withholding once it has begun by providing your correct name and TIN. You will be required to certify that the TIN you give is correct.
Exemptions
If you are exempt from backup withholding, select from the dropdown list, the appropriate code that may apply to you.
Exempt payee code.
• Generally, individuals (including sole proprietors) are not exempt from backup withholding.
• Except as provided below, corporations are exempt from backup withholding for certain payments, including interest and dividends.
• Corporations are not exempt from backup withholding for payments made in settlement of payment card or third party network transactions.
• Corporations are not exempt from backup withholding with respect to attorneys' fees or gross proceeds paid to attorneys, and corporations that provide medical or health care services are not exempt with respect to payments reportable on Form 1099-MISC.
The following codes identify payees that are exempt from backup withholding. Select the appropriate code from the dropdown list.
1—An organization exempt from tax under section 501(a), any IRA, or a custodial account under section 403(b)(7) if the account satisfies the requirements of section 401(f)(2)
2—The United States or any of its agencies or instrumentalities
3—A state, the District of Columbia, a U.S. commonwealth or possession, or any of their political subdivisions or instrumentalities
4—A foreign government or any of its political subdivisions, agencies, or instrumentalities
5—A corporation
6—A dealer in securities or commodities required to register in the United States, the District of Columbia, or a U.S. commonwealth or possession
7—A futures commission merchant registered with the Commodity Futures Trading Commission
8—A real estate investment trust
9—An entity registered at all times during the tax year under the Investment Company Act of 1940
10—A common trust fund operated by a bank under section 584(a)
11—A financial institution
12—A middleman known in the investment community as a nominee or custodian
13—A trust exempt from tax under section 664 or described in section 4947
Single member LLC
If you select 'Single-member LLC' as your Federal Tax Classification, per US IRS tax regulations, you are required to provide either your SSN or EIN assigned to your own name and not that of the LLC’s. Per IRS regulations: "For federal income tax purposes, a single-member LLC classified as a disregarded entity generally must use the owner's social security number (SSN) or EIN for all information returns and reporting related to income tax. For example, if a disregarded entity LLC that is owned by an individual is required to provide a Form W-9, Request for Taxpayer Identification Number and Certification, the W-9 should provide the owner’s SSN or EIN, not the LLC’s EIN.”
Note - when you select the 'Continue' button, Tax Identity makes a web call to the IRS to verify your TIN and legal name pair. If your legal name and TIN pair do not match, you will be required to correct the error. Please ensure you follow the above guidance as it relates to Single-member LLC's
FATCA
The Foreign Account Tax Compliance Act or FATCA requires United States citizens, including individuals who live outside the United States, to report their financial accounts held outside of the United States, and requires foreign financial institutions to report to the Internal Revenue Service (IRS) about their American clients. FATCA was designed primarily to combat offshore tax evasion and to recoup federal tax revenues.
Beneficial Owner (W-8)
The beneficial owner of income is generally the person who is required under U.S. tax principles to include the income in gross income on a tax return. A person is not a beneficial owner of income, however, to the extent that the person is receiving the income as a nominee, agent, or custodian, or to the extent that the person is a conduit whose participation in a transaction is disregarded. In the case of amounts paid that do not constitute income, beneficial ownership is determined as if the payment were income.
Foreign partnerships, foreign simple trusts, and foreign grantor trusts are not the beneficial owners of income paid to the partnership or trust. The beneficial owners of income paid to a foreign partnership are generally the partners in the partnership, provided that the partner is not itself a partnership, foreign simple or grantor trust, nominee or other agent. The beneficial owners of income paid to a foreign simple trust are generally the beneficiaries of the trust, if the beneficiary is not a foreign partnership, foreign simple or grantor trust, nominee or other agent. The beneficial owners of a foreign grantor trust are the persons treated as the owners of the trust. The beneficial owner of income paid to a foreign complex trust (that is, a foreign trust that is not a foreign simple trust or foreign grantor trust) is the trust itself.
The beneficial owner of income paid to a foreign estate is the estate itself.
Disregarded entity - single member
If you select this beneficial owner type, you will be required to complete additional information that identifies the owner of the disregarded entity.
U.S. Person Tests
If you selected any of the following responses, you may be considered a US person for tax purposes:
- You have a U.S. Passport
- Your were born in the U.S. and have not renounced your birth right
- Green Card Properly Revoked
If your Green Card was not properly revoked by filing Form I-407, along with the Green Card, at a U.S. embassy, you may be considered a U.S. person for tax purposes.
- Substantial Presence
If you spend at least 31 days during the current year and 183 days during the three year period ending December 31, 2012, you are considered a U.S. person for tax purposes. 183 days is calculated by including all the days you were present in the U.S. during the current year, 1/3 of the days present during the prior year, and 1/6 of the days present during the second year before the current year.
Find more information about substantial presence here
Derivation of Income
An item of income may be derived by either the entity receiving the item of income or by the interest holders in the entity or, in certain circumstances, both. An item of income paid to an entity is considered to be derived by the entity only if the entity is not fiscally transparent under the laws of the entity’s jurisdiction with respect to the item of income. An item of income paid to an entity shall be considered to be derived by the interest holder in the entity only if:
- The interest holder is not fiscally transparent in its jurisdiction with respect to the item of income, and
- The entity is considered to be fiscally transparent under the laws of the interest holder’s jurisdiction with respect to the item of income. An item of income paid directly to a type of entity specifically identified in a treaty as a resident of a treaty jurisdiction is treated as derived by a resident of that treaty jurisdiction.
Foreign Tax Identification Number
If your country of residence for tax purposes has issued you a tax identifying number, enter it on the interview. For example, if you are a resident of Canada, enter your Social Insurance Number.
The OECD has also published TINs for certain countries - please review the list here
Tax Identification Number
Your TIN can be your Social Security Number (SSN), your Employer Identification Number (EIN) or your Individual Tax Identification Number (iTIN). You can find your SSN on your Social Security card. You can find your EIN on the CP575A notice from the IRS that assigned your EIN. You can find your iTIN number on form 9844 from the IRS. Be sure to verify that the TIN you enter is your correct TIN
Limitation of Benefits (LOB)
The following amplifies the descriptions of the content of the dropdown list (in the tax interview) for your convenience, however you should use this as a guide and not rely upon for making a final determination that you meet an LOB test. Rather you must check the text of the LOB article, contained with the tax treaty itself to determine which tests are available under that treaty and the particular requirements of those tests.
A list of countries that the United States has tax treaties with can be found here
Government—this test is met if the entity is the Contracting State, political subdivision, or local authority.
Tax-exempt pension trust or pension fund—this test generally requires that more than half the beneficiaries or participants in the trust or fund be residents of the country of residence of the trust or fund itself.
Other tax-exempt organization—this test generally requires that more than half the beneficiaries, members, or participants of religious, charitable, scientific, artistic, cultural, or educational organizations be residents of the country of residence of the organization.
Publicly-traded corporation—this test generally requires the corporation's principal class of shares to be primarily and regularly traded on a recognized stock exchange in its country of residence, while other treaties may permit trading in either the U.S. or the treaty country, or in certain third countries if the primary place of management is the country of residence.
Subsidiary of publicly-traded corporation—this test generally requires that more than 50% of the vote and value of the company's shares be owned, directly or indirectly, by five or fewer companies that are publicly-traded corporations and that themselves meet the publicly-traded corporation test, as long as all companies in the chain of ownership are resident in either the U.S. or the same country of residence as the subsidiary.
Company that meets the ownership and base erosion test—this test generally requires that more than 50% of the vote and value of the company's shares be owned, directly or indirectly, by individuals, governments, tax-exempt entities, and publicly-traded corporations resident in the same country as the company, as long as all companies in the chain of ownership are resident in the same country of residence, and less than 50% of the company's gross income is accrued or paid, directly or indirectly, to persons who would not be good shareholders for purposes of the ownership test.
Company that meets the derivative benefits test—this test is generally limited to NAFTA, EU, and EEA country treaties, and may apply to all benefits or only to certain items of income (interest, dividends, and royalties). It generally requires that more than 95% of the aggregate vote and value of the company's shares be owned, directly or indirectly, by seven or fewer equivalent beneficiaries (ultimate owners who are resident in an EU, EEA, or NAFTA country and are entitled to identical benefits under their own treaty with the U.S. under one of the ownership tests included within the LOB article (other than the stock ownership and base erosion test)). In addition, this test requires that less than 50% of the company's gross income be paid or accrued, directly or indirectly, to persons who would not be equivalent beneficiaries.
Company with an item of income that meets the active trade or business test—this test generally requires that the company be engaged in an active trade or business in its country of residence, that its activities in that country be substantial in relation to its U.S. activities, if the payer is a related party, and the income be derived in connection to or incidental to that trade or business.
Favorable discretionary determination received—this test requires that the company obtain a favorable determination granting benefits from the U.S. competent authority that, despite the company's failure to meet a specific objective LOB test in the applicable treaty, it may nonetheless claim the requested benefits. Note: Unless a treaty or technical explanation specifically provides otherwise, you may not claim discretionary benefits while your claim for discretionary benefits is pending.
Other—for other LOB tests that are not listed above (e.g., a headquarters test). Identify the other test relied upon, or enter N/A if the treaty has no LOB article. For example, if you meet the headquarters test under the U.S.-Netherlands income tax treaty, you should write “Headquarters test, Article 26(5)” in the space provided.
Effectively connected income
If you have a permanent establishment in the United States and the property giving rise to the income is effectively connected with this permanent establishment, then your income is effectively connected with the United States.