If they don’t match, the IRS won’t have confidence in the information provided and will send an error notice back to the reporting company. This could lead to a 24% deduction in the vendor’s payment moving forward to satisfy IRS backup withholding requirements.

What is the difference between a w8 and w9 form?

The difference between W-8 and W-9 forms lies in the fact that the W-9 tax form is only required to be used by companies or associations that are created, organized and primarily in the US, operating under United States’ laws.

Why did I receive a substitute Form W-9?

NYS Office of the State Comptroller uses the Substitute Form W-9 to obtain certification of your TIN in order to ensure accuracy of information contained in its payee/vendor database and to avoid backup withholding. Any payee/vendor who wishes to do business with New York State must complete the Substitute Form W-9.

Is w8 form mandatory?

All non-US persons and entities are required to complete an IRS Form W-8 to certify your country of tax residence and to establish whether you qualify for a reduced rate of withholding when opening an account. W-8 Forms are not provided to the IRS.

How to complete the W9 and W-8BEN?

Completing the W9, W-8BEN, W-8BEN-E, or other W8’s 1 US tax residents should fill out a W9 2 Non-US tax residents should complete a W-8BEN 3 Non-US organizations should complete a W-8BEN-E

Do you have to complete the W8 form?

There are also other less common versions of W-8’s as well for other specific situations. You will be required to complete the appropriate form and upload it your account (the upload is in the Payout tab of your Seller Dashboard).

Can a non resident alien fill out Form W9?

As a non-resident alien you would fill out form W8-BEN instead of W9. Once you become a resident alien (after 5 years in the US on F1), the W9 would apply to you as well. Form W4 is for withholdings, but since you are freelancing (self-employed), that would not apply here.

When do I need to file a W-9?

If the vendor (or beneficial owner of the compensation) for personal services is a resident alien for US tax purposes with an EIN, ITIN or SSN and can claim a tax treaty benefit under a saving clause exception, a W-9 is required to claim tax exemption or withholding.