W-9 Cluster Fuck Underway - SPONSORS PLEASE NOTE
 

KinkyDollars.com is already fucking this up, so I wanted to make other Sponsors aware. Accounting in the hands of people that don't read instructions is a DANGEROUS THING, so please do your homework if you are requesting W-9 from your American affiliates!

Some sponsors seem to think that if the "exempt from back-up withholding" box is not checked, then the affiliate is subject to back-up withholding. And then the sponsor thinks that they need to withhold 28% of payments.

This is not the case!

All individuals / sole-proprietors should not be checking the "exempt from back-up withholding" box. If they do, the form will likely be INVALID. The "exempt" box indicates that the affiliate, as a result of its business structure, is CATEGORICALLY exempt from back-up withholding. This is true in most cases for CORPORATIONS but NOT for individuals / sole-props.

Instead, Part II of the form is a certification by the affiliate that he/she/it is not subject to back-up withholding. It is THIS CERTIFICATION that is needed- not the "exempt" box being checked- so that the Sponsor is not required to withhold 28% from affiliate payments.

This is all in the W-9 form instructions if the Sponsors care to read it. It is a little obscure, but still that's no reason for Sponsors not to know what's going on.

I'm having alot of problems with sponsors on W9's as I run as a DBA, with the checks made out in my business name, and my taxes filed as a sole proprietor.

In my case Kinky Dollars was right on the ball in terms of understanding my situation accepting my information.

just to be clear, it's nothing against KinkyDollars- I'm sure they'll sort things out. I just wanted to point out that at least one Sponsor is already misinterpreting this form...