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W-8 and W-9 Tax Form - Is this really required??

by toddperk
4 replies
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.
#form #required #tax
  • Profile picture of the author John Cabral
    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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  • Profile picture of the author jacktackett
    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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  • Profile picture of the author tecHead
    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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  • Profile picture of the author LB
    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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