Hi All, Recently, one of my main sources of affiliate income had passed on an email from his tax guy. The email is as follows: ========================= Please inform the affiliates that they will be required to apply for the TIN as soon as possible in order to avoid the mandated 30% withholding the IRS requires if there is no TIN. They can apply for the TIN with the form below: http://www.irs.gov/pub/irs-pdf/fw7.pdf After they receive their TIN, they will need to submit a new W-8BEN form. http://www.irs.gov/pub/irs-pdf/fw8ben.pdf Please inform them we will need the new W-8BEN by April 1, 2009 or we will be required to start withholding 30% of their gross compensation and remitting it to the IRS. Thank You for your attention on this matter." ============================= I can not get a straight answer from the company, even though I asked him to forward my concerns to his tax guy. My main concern is that this ITIN form is asking for my personal details, including copies of my passport and drivers licence, and yet I operate under my company, i.e. my affiliate commissions are paid to my company/trust, which is how my W-8BEN from is filled out. I live in australia, and as far as I can see on the IRS site, nothing has changed. I'd email the IRS but they don't have a contact email or form Has anyone else in Australia had this issue? Regards Dean
There are some new regs that start in 2009-10 but this doesn't pass the smell test to me. First off if a "Trust" is the same a a US INC then 1099 reporting is not even required when payments are made to a corporation. I would ask them to specifically name the law, reg or whatever that is creating the change. Get me a little more information and I will try to find the correct publication for you. I try to keep a pretty close eye on the government because they always have their hand in pocket and that is close to the jewels.
Hi Colbyt, Thanks. I will ask them for that. I asked him to forward my original concern and this was his response (this is the guy I deal with at the company I am an affiliate for).... However you are being paid as is who we need on the tax form. So if we're paying you then we need your name and personal tin from the gov. As I told this guy, they are paying my company/trust, not me personally. Maybe some people are simply too busy to read emails properly. Well I've gone several steps further. I have contacted our own Tax Office the ATO and am awaiting a response, and also my own accountant. I tried ringing the IRS but it seems no one alive works there. It's not just the company/trust thing. If you look a the actual form, the number of attachments required are quite many and would seem beyond me, and that is if I get the category right, as I assume I'd fall under one of the exception categories, which I am guessing is 2b. This is really ridiculous. Doing many Google searches, it seems that a lot of self publishers, and people dealing with POD book companies are actually starting to have these similar issues too. For example, one person is trying to have their book printed and sold by CreateSpace and they are requesting a W-7 from from them otherwise they'll have to withhold 30%. So it's not isolated, but the problems these people are facing are many too, just with me Why have none of the other companies I'm an affiliate for contacted me asking for the same info. The reason I ask this is because it also seems that every company that you deal with that requires an W-7 form, has to personally send a letter to the IRS on your behalf with information regarding a contract, and not only that, we must attach proof we are not eligible for SSN#. Why the hell would I want an SSN# anyway. I live in Australia!! Man, there is something fishy going on
I know I just posted a short reply in this thread and now I can not find it to edit. You may need to dance through the hoops on this one. A little more reading can confirm that. The gottcha looks like this: The company who is paying you is required to have a taxpayer ID number on file for every payment. I can't see any way you will have to pay taxes but you may need the number in order to get paid. A few key points and a couple of links for you. ------------- Who needs an ITIN? IRS issues ITINs to foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for SSNs. A non-resident alien individual not eligible for a SSN, who is required to file a U.S. tax return only to claim a refund of tax under the provisions of a U.S. tax treaty, needs an ITIN. Examples of individuals who need ITINs include: Non-resident alien filing a U.S. tax return and not eligible for a SSN U.S. resident alien (based on days present in the United States) filing a U.S. tax return and not eligible for a SSN Dependent or spouse of a U.S. citizen/resident alien Dependent or spouse of a non-resident alien visa holder ------------------------------- How do I know if I need an ITIN?If you do not have a SSN and are not eligible to obtain a SSN, but you have a requirement to furnish a federal tax identification number or file a federal income tax return, you must apply for an ITIN.If you have an application for a SSN pending, do not file Form W-7. Complete Form W-7 only if the Social Security Administration (SSA) notifies you that a SSN cannot be issued. The above extracted from: http://www.irs.gov/businesses/small/international/article/0,,id=96696,00.html#itin http://www.irs.gov/individuals/article/0,,id=96287,00.html
Hi Colbyt, Thanks for your efforts but I have read all that already. There are still too many unanswered questions which I can not find anywhere on the internet, IRS web site or anywhere. I'm still waiting for a response from the company I am dealing with. The main issues are still, I am a company/trust, not an individual who is dealing with this company I have to provide proof I am not eligible for a SSN# (why the hell would I want one in the first place??) No other company I am an affiliate for has requested this number And if they did, then I would need a letter of contract for all of them - which begs the question, will I be required to lodge a form for every company I deal with This is absolute BS, because apart from international authors dealing with US pod and publishing companies, I can not find anyone else on this whole freakin web who is having to do this, and I know as far as my ass points south, there are far more affiliates on this planet than authors using the pod industry! But thanks for your efforts anyway Dean
Welcome to the US tax code and the rules and regs that businesses have to deal with. Now do you have a few extra acres? I'll send the wife over and let her get the sheep farm started.