Claiming Exemptions from Backup Witholding or FATCA Reporting As Contractor
The Exemptions page of the onboarding flow refers to FATCA or backup withholding paperwork (which is associated with receiving a payee code or FATCA reporting code).This information goes on a W-9 and can be used to fill out a 1099 at the end of the year. A payee may not be exempt if, for example, the IRS notifies the payer that the payee's TIN is incorrect and they have failed to make any correction, the IRS notifies the payer to start withholding on interest or dividends because the payee underreported interest or dividends on their income tax return, etc.
If you have questions about exemptions, consult with a tax advisor.
For additional information, see the FATCA Website.
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