We would much rather get the paperwork out of the way early – so everyone has nothing left to do but focus on sales. Hence; we will not be put into a situation where we have to chase you down for documentation. Therefore: In order to get paid, you will need to properly fill out, and submit to us, either an IRS – W8 or W9 form; depending on your citizenship and residence ( as determined by IRS qualifications listed herein ). You will not get paid commissions unless you have submitted these forms to us. Therefore: please do take the time to fill out the forms, and send them back to ensure you get paid ! The forms are available for download below.

RATIONALE:

Section 6109 of the Internal Revenue Code requires you to provide your correct TIN to persons (including federal agencies) or entities, who are required to file information returns with the IRS to report interest, dividends, or certain other income paid to you; mortgage interest you paid; the acquisition or abandonment of secured property; the cancellation of debt; or contributions you made to an IRA, Archer MSA, or HSA. The person or entity collecting this form uses the information on the form to file information returns with the IRS, reporting the above information. Routine uses of this information include giving it to the Department of Justice for civil and criminal litigation and to cities, states, the District of Columbia, and U.S. commonwealths and possessions for use in administering their laws. The information also may be disclosed to other countries under a treaty, to federal and state agencies to enforce civil and criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism. You must provide your TIN whether or not you are required to file a tax return. Under section 3406, payers must generally withhold a percentage of taxable interest, dividend, and certain other payments to a payee who does not give a TIN to the payer. Certain penalties may also apply for providing false or fraudulent information. A quick overview of IRS reg’s we are subject to would include the following points:

  • Definition of a U.S. person… For federal tax purposes, you are considered a U.S. person if you are:
    • An individual who is a U.S. citizen or U.S. resident alien;
    • A partnership, corporation, company, or association created or organized in the United States or under the laws of the United States;
    • An estate (other than a foreign estate); or a domestic trust (as defined in Regulations section 301.7701-7)

Those who don’t fit these criteria should submit the W8 form as well.

Back-Up With-Holding: Persons or entities (us) making certain payments to you must under certain conditions withhold and pay to the IRS 28% of such payments. Payments that may be subject to backup withholding include affiliate sales commissions. Payments you receive will be subject to backup withholding if:

1. You do not furnish your TIN to the requester,
2. You do not certify your TIN when required (see the Part II form instructions),
3. The IRS tells the requester that you furnished an incorrect TIN,
4. The IRS tells you that you are subject to backup withholding because you did not report all your interest and dividends on your tax return (for reportable interest and dividends only), or
5. You do not certify to the requester that you are not subject to backup withholding under 4 above (for reportable interest and dividend accounts opened after 1983 only).

You will not be subject to backup withholding on payments you receive if you give the requester (us) your correct TIN, make the proper truthful certifications on the form, and report all your taxable interest and dividends on your tax return.

IRS imposed Penalties; Failure to furnish TIN:

  • If you fail to furnish your correct TIN to a requester, you are subject to a penalty of $50 for each such failure unless your failure is due to reasonable cause and not to willful neglect.
  • Civil penalty for false information with respect to withholding… If you make a false statement with no reasonable basis that results in no backup withholding, you are subject to a $500 penalty.
  • Criminal penalty for falsifying information… Willfully falsifying certifications or affirmations may subject you to criminal penalties including fines and/or imprisonment.
  • Additionally; if we fail to provide proper documentation to the IRS, the IRS will make us liable to pay all the taxes, fee’s, fines, and penalties on the dollar amounts paid to you, and classified as “incorrectly” or “under-reported”.

Additionally; the reguirements of the IRS code for reporting, do indeed set a threshold limit of $ 600 (USD) per annum, for issuance of a 1099, and reporting income earned… If you do not earn the limit in commissions during the year – you will not get a 1099. But – we still need your TIN in order to properly deduct sales commissions.

Indeed it’s a conundrum !

Generally speaking: these forms; along with the records kept in our affiliate software, allow SCMG Enterprises, LLC., to keep proper tax records. When you finish filling out the forms; save them locally on your computer under a file-name other than the one you received them by, (we suggest using your email or name {for example – MartyMcfly.pdf -or- someone@domain.com.pdf}), and then return them to us by emailing them to us – so we can properly “credit” you as having complied.

  • For U.S. Person’s; please submit a completed and signed form W-9
  • For Non-U.S. Person’s; please submit a completed and signed form W-8ben

Upload your completed IRS forms below… Remember the name of the form MUST be unique !


Upload files