Why do you require my W9 or W-8BEN?

Fohr needs a W-9 or W-8BEN form to comply with tax reporting and withholding requirements set by the IRS in the United States. Here's why:

• W-9 Form (U.S. citizens and residents)
  • Taxpayer Identification: The W-9 form provides the company with the taxpayer's identification number (TIN), typically a Social Security Number (SSN) or Employer Identification Number (EIN). This is necessary for reporting payments made to U.S. citizens or resident individuals (like contractors or freelancers) to the IRS.
  • Reporting Payments: The company uses this information to issue a 1099 form, which reports the income paid to the individual. The IRS uses this to ensure the recipient reports the income on their tax returns.
• W-8BEN Form (Non-U.S. persons)
  • Certifying Foreign Status: Non-U.S. citizens or residents complete a W-8BEN to certify that they are foreign persons and not subject to the same tax withholding rules as U.S. citizens.
  • Tax Withholding: The W-8BEN helps companies apply the correct withholding tax rate (which might be reduced or exempt due to a tax treaty between the U.S. and the recipient's country).