W8 Taxform?

Ok so I recently signed up to a CPA network and they said that you couldn't be paid till you completed the W8 TaxForm. what exactly is it and would anyone be so kind to convert this to english:
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"Claim of Tax Treaty Benefits (if applicable)

I certify that (check all that apply):

The beneficial owner is a resident of [the country specified] within the meaning of the income tax treaty between the United States and that country.

If required, the U.S. taxpayer identification number is stated on line 6 (see instructions).

The beneficial owner is not an individual, derives the item (or items) of income for which the treaty benefits are claimed, and, if applicable, meets the requirements of the treaty provision dealing with limitation on benefits (see instructions).

The beneficial owner is not an individual, is claiming treaty benefits for dividends received from a foreign corporation or interest from a U.S. trade or business of a foreign corporation, and meets qualified resident status (see instructions).



Certification

Under penalties of perjury, I declare that I have examined the information on this form and to the best of my knowledge and belief it is true, correct, and complete. I further certify under penalties of perjury that:

1. I am the beneficial owner (or am authorized to sign for the beneficial owner) of all the income to which this form relates,

2. The beneficial owner is not a U.S. person,

3. The income to which this form relates is not effectively connected with the conduct of a trade or business in the United States or is effectively connected but is not subject to tax under an income tax treaty, and

4. For broker transactions or barter exchanges, the beneficial owner is an exempt foreign person as defined in the instructions.

Furthermore, I authorize this form to be provided to any withholding agent that has control, receipt, or custody of the income of which I am the beneficial owner or any withholding agent that can disburse or make payments of the income which I am the beneficial owner."
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Also I'm almost 18 but not yet 18 is there anything I should worry about. Will I face any consequences if they discover that I'm not really 18? Even if I'm not yet 18, If I stick to all the rules and do everything by the books should I run into any obstacles?
Thanks in Advance

 

http://www.irs.gov/pub/irs-pdf/fw8ben.pdf

If you're a US Citizen or legal alien don't fill out the form. More than likely it's a scam.

And I don't know what their TOS states but in the US you don't have to be 18 to pay taxes.

 

Thanks but I'm a Canadian so I guess it regular procedure. Is there any minimum age to fill out a W8?

 

No there is no minimum age (at least as far as I know). Most things with US taxes can be completed by anyone that is legally required to pay taxes (anyone with any income).

It may not be a scam if you are outside the US then

I remember getting an email to fill out this form from lol. I'm a natural born US citizen

 

haha thats funny that someone thinks a government organization would send an email through free email account.
thanks for your help

oh one more thing, the network like many other require you to be 18 to register I am almost 18 but not yet do you foresee any trouble with doing so? What is the worse penalty if they discover that you're under 18? Close your account? I mean if you're making them money and following all the rules they shouldn't care right?

 

Maybe wait until you fill out the form and submit it until you are 18.

 

Think you need to check your law before making such posts.

The W8 is the equivalent of the W9
THe W8 applies to none US Residents.
The W9 applies to US Residence

If the company paying you is registered in the USA it IS required by US law to have either W8 or W9 on record if your earnings exceed $x per year.
Last time I looked the $x was around the $600 but this may or may not have changed since then.

The person posting the question states clearly they signed up to a CPA program which said they could not be paid without the form, so if that program in registered in the USA its not a scam.

 

It all depends on if you are legally allowed to enter into a legal contract if you are not 18 in the country you live in, which in your case is Canada

 

@lonestar- thanks for your help

oh ok I'm not too sure but if you're not can you still fill out a W8-Form?

 

You will need to fill out the W-8BEN Form as lcwadminbj outlined - regardless of whether you are 18 or not. It is required by US Law for all companies that pay out more than $600.00 per year to any one person/company - whether they are a resident or not. Rather than deal with that form at the $600.00 mark, companies request to have it on file right from the beginning, to cover their butts.

Part 1 -
Name (your name or your company name).
Country: Canada.
Type of Beneficial Owner: Individual (or if you are a company, how ever the company is set up)
Fill in the address (Permanent, and Mailing if applicable)
U.S. Taxpayer Identification Number: Write "Not Required"
Foreign Tax ID Number: Leave Blank
Reference Number: Your CPA Account Number, Username, etc.

Part 2:
Check Box A and write "Canada" in the blank on that line.

Part 3:
Check that box.

Part 4:
Sign and Date it.

That's it! Pretty simple and you aren't giving them really any more information than you gave them when you signed up.

 

The W-8BEN is not a "contract" in the traditional sense. It is a declaration that you are not subject to the usual U.S. Withholding Tax on your earned revenues because you do not have any business presence in the United States.

If you do not have a U.S. presence, then the company paying you does not need to withhold a percentage for taxes.

Signing up for the CPA Network is a contract however and you may have needed to be 18 for that. I wouldn't worry about that though.

And even through you are not 18 yet, if you earn an income, you have to file an income tax return. As long as you don't make above the Basic Personal Amount Tax Exemption (which is just below $10,000) then you won't have to pay any income tax... but you still need to file a return.

In Canada, you can start working legally, when you are 12 (most industries) and 14 for all industries. There may be restrictions placed on when, where and what you can do at work but you still can work - think of McDonald's. But you do have to declare your income, whether you pay taxes on it or not.

 

Thanks most helpful post so far I'd add 2 reps if I could lol

 

I am not a legal advisor but through my experience on the internet I know some of the basics.

If you are not of legal age to enter into a contract then you need parential consent, you need to check with a qualified legal advisor to find out for sure.

It is in your best interest as if you dont do things correctly then you could lose any earnings that you make, and possibly face prosecution.

 

Yes I was referring to the contract with the CPA company - I should have made that clear.

Also thank you for laying out how to fill in the form in such a consice and clear way. It should help a lot of people.

 

So I have a big problem with adult friend finder affiliate program and this form. I sent them this:
http://imageshack.us/photo/my-images/163/photo4qyz.jpg/

And they keep refusing my form without any mention of what is wrong with it...I've been searching all over the web but I can't find what more I should put on the form.

Adult friend finder is being ridiculously unhelpful on this. They paid us more than 50K over the years but it's impossible to have any contact with them other that form email answers.

 

They ask for my TIN:
"Important Tax Information:
Your affiliate payment on Adult FriendFinder for GPID g1183472 has been declined. We cannot process payments unless you have a valid W-8/W-9 tax form on file with us.

In order to file an information return with the IRS, we must obtain your correct Taxpayer Identification Number (TIN) to report income paid to you. Please ensure that you have a W-8/W-9 form on file with us in order to ensure timely payment. Log in to your account to fill out a W-8/W-9 form. Once signed, please mail or fax the completed form to:"

As an european company I don't have a TIN...what am I supposed to do? (already gave them my VAT number)