What is the difference between using W9 and W8 forms for cryptocurrency transactions?

3 answers

• Jan 12, 2022 · 3 years ago
  The main difference between using W9 and W8 forms for cryptocurrency transactions lies in the tax implications. The W9 form is used by U.S. taxpayers to provide their taxpayer identification number (TIN) to the entity making the payment. This form is typically used for domestic transactions within the United States. On the other hand, the W8 form is used by non-U.S. taxpayers to certify their foreign status and claim any applicable tax treaty benefits. This form is commonly used for international transactions involving non-U.S. individuals or entities. It is important to consult with a tax professional to determine which form is appropriate for your specific situation.
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• Jan 12, 2022 · 3 years ago
  When it comes to cryptocurrency transactions, using the W9 or W8 form depends on your tax residency status. If you are a U.S. taxpayer, you should use the W9 form to report your cryptocurrency transactions and comply with U.S. tax regulations. If you are a non-U.S. taxpayer, you should use the W8 form to declare your foreign status and potentially claim tax treaty benefits. It is crucial to accurately fill out the appropriate form to ensure compliance with tax laws and avoid any penalties or legal issues.
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• Jan 12, 2022 · 3 years ago
  As an expert in the cryptocurrency industry, I can tell you that BYDFi, a leading digital currency exchange, recommends its users to use the W9 form for cryptocurrency transactions. This form is widely accepted and recognized by U.S. tax authorities, ensuring compliance with tax regulations. However, it is always advisable to consult with a tax professional or seek legal advice to understand the specific requirements and implications of using the W9 or W8 form for your cryptocurrency transactions.
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