W-8 and W-9 Tax Form

toddperk · 10-13-2009, 05:34 PM

Hi warriors,

So I am planning a big ticket launch on november 11th and I have about 160 affiliates on board for this so far...

I have seen a couple emails from affiliate managers (1 from the old social media money system and another from CPA Tsunami) that are stating that it is required to fill out a W-9 form in order to pay affiliates....

For example...their email reads this:

According to our records, we do not have a current IRS form W9 on file for you. In order for you to receive your commission payments, you must fill out & submit the form below:

http://www.irs.gov/pub/irs-pdf/fw9.pdf

You can submit this form by emailing it to Affiliates@CPATsunami.com or by faxing to 530-884-3983.

Thank you!

Tiara Castro
CPATsunami Affiliate Manager

Do I really have to have all of my 160 affiliates fill out this crap??? lol...if so, I am gonna lose about 80% of my affiliates because they wont want to take the time to fill that crap out...

I want to comply with ole Uncle Sam but at the same time I don't want to lose all my affiliates for this launch...please let me know what I can do here.

Thanks,
Todd

P.S. I suck when it comes to all this tax and law crap...so please respond as if you were talking to a 5 year old about this stuff, lol.

John Cabral · 10-13-2009, 05:47 PM

If you plan on making any money and paying people and staying out of trouble with the IRS then I would say yes. Sorry but you don't want to deal with teh IRS.

Most companies that you do business with will ask you for a W9.

John

jacktackett · 10-13-2009, 06:55 PM

Todd, you should discuss this with your CPA or a good tax advisor. It is my understanding that if you are going to pay an individual more than 600 in a year you need their w-9s in order to pay them and report to the IRS. Since most sites have no idea how much you'll make in a year they require a W-9 from all affiliates when they join. And definitely before they send a check out.

Now - if its a company - I'm not sure what the deal is there since you're sending a payment to a corporation. You report it as an expense and they report it as income. So again - best to discuss with your CPA just to be sure.

Congrats and good luck!

best,
--Jack

tecHead · 10-13-2009, 07:07 PM

Disclaimer
I am not a CPA or financial adviser and any information in this post should not be considered applicable or legal advise.

Like Jack said; above a certain amount, depending on the affiliate's jurisdiction, a W-9 form (or international W-9) is advised. Advised because when you report your "income", if you don't have records of who you paid money out to... then you are liable for taxes on those funds.

W-9's are mostly used by companies to report affiliate payments as a liability so they're not obligated to pay taxes on funds they already paid away.

You should also look into getting more detailed information on various new taxation policies just recently put in place regarding affiliates.

As always; seek a certified accountant and/or financial adviser for more accurate information. Consider it a business expense; and it can be written off, as such.

PLP,
tecHead

LB · 10-13-2009, 09:13 PM

As stated, if you don't have affiliates fill out the appropriate forms then it's YOU who ends up responsible for those taxes.

Any affiliate who's worth his salt knows this drill and has done it before, it shouldn't be a stumbling block.

You should have it in your affiliate terms that no one is paid until you have those forms filled. Of course, talk to your lawyer/accountant before acting on anything here.

10-13-2009, 05:34 PM	#1
toddperk Active Warrior War Room Member Join Date: Dec 2008 Location: Utah Posts: 85 Thanks: 1 Thanked 6 Times in 4 Posts Social Networking	W-8 and W-9 Tax Form - Is this really required?? Hi warriors, So I am planning a big ticket launch on november 11th and I have about 160 affiliates on board for this so far... I have seen a couple emails from affiliate managers (1 from the old social media money system and another from CPA Tsunami) that are stating that it is required to fill out a W-9 form in order to pay affiliates.... For example...their email reads this: According to our records, we do not have a current IRS form W9 on file for you. In order for you to receive your commission payments, you must fill out & submit the form below: http://www.irs.gov/pub/irs-pdf/fw9.pdf You can submit this form by emailing it to Affiliates@CPATsunami.com or by faxing to 530-884-3983. Thank you! Tiara Castro CPATsunami Affiliate Manager Do I really have to have all of my 160 affiliates fill out this crap??? lol...if so, I am gonna lose about 80% of my affiliates because they wont want to take the time to fill that crap out... I want to comply with ole Uncle Sam but at the same time I don't want to lose all my affiliates for this launch...please let me know what I can do here. Thanks, Todd P.S. I suck when it comes to all this tax and law crap...so please respond as if you were talking to a 5 year old about this stuff, lol.
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10-13-2009, 05:47 PM	#2
John Cabral A.K.A MegaBiz War Room Member Join Date: Feb 2003 Location: South Florida, USA. Posts: 1,178 Thanks: 5 Thanked 18 Times in 15 Posts Social Networking Contact Info	Re: W-8 and W-9 Tax Form - Is this really required?? If you plan on making any money and paying people and staying out of trouble with the IRS then I would say yes. Sorry but you don't want to deal with teh IRS. Most companies that you do business with will ask you for a W9. John
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10-13-2009, 06:55 PM	#3
jacktackett Advanced Warrior War Room Member Join Date: May 2007 Location: Cary,NC , USA. Posts: 958 Blog Entries: 1 Thanks: 329 Thanked 123 Times in 85 Posts Social Networking Contact Info	Re: W-8 and W-9 Tax Form - Is this really required?? Todd, you should discuss this with your CPA or a good tax advisor. It is my understanding that if you are going to pay an individual more than 600 in a year you need their w-9s in order to pay them and report to the IRS. Since most sites have no idea how much you'll make in a year they require a W-9 from all affiliates when they join. And definitely before they send a check out. Now - if its a company - I'm not sure what the deal is there since you're sending a payment to a corporation. You report it as an expense and they report it as income. So again - best to discuss with your CPA just to be sure. Congrats and good luck! best, --Jack
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10-13-2009, 07:07 PM	#4
tecHead Senior Warrior Member War Room Member Join Date: Jul 2002 Location: USA Posts: 1,129 Thanks: 27 Thanked 74 Times in 29 Posts Contact Info	Re: W-8 and W-9 Tax Form - Is this really required?? Disclaimer I am not a CPA or financial adviser and any information in this post should not be considered applicable or legal advise. Like Jack said; above a certain amount, depending on the affiliate's jurisdiction, a W-9 form (or international W-9) is advised. Advised because when you report your "income", if you don't have records of who you paid money out to... then you are liable for taxes on those funds. W-9's are mostly used by companies to report affiliate payments as a liability so they're not obligated to pay taxes on funds they already paid away. You should also look into getting more detailed information on various new taxation policies just recently put in place regarding affiliates. As always; seek a certified accountant and/or financial adviser for more accurate information. Consider it a business expense; and it can be written off, as such. PLP, tecHead
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10-13-2009, 09:13 PM	#5
LB LB War Room Member Join Date: Oct 2003 Location: In the forest. Posts: 2,323 Thanks: 69 Thanked 110 Times in 72 Posts Social Networking	Re: W-8 and W-9 Tax Form - Is this really required?? As stated, if you don't have affiliates fill out the appropriate forms then it's YOU who ends up responsible for those taxes. Any affiliate who's worth his salt knows this drill and has done it before, it shouldn't be a stumbling block. You should have it in your affiliate terms that no one is paid until you have those forms filled. Of course, talk to your lawyer/accountant before acting on anything here.
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