Why I need to provide my social security number in its full-9-digit format?
We’re legally required to ask customers to certify their tax status by completing a W-9 or W-9 equivalent. The W-9 verifies: name, address, and the full 9-digit Individual Taxpayer Identification Number (TIN).
For more information, please visit the IRS website (https://www.irs.gov/pub/irs-pdf/p1281.pdf)
What do I do if I have an incorrect or missing individual Taxpayer Identification Number TIN?
We consider a TIN to be missing if it is not provided or if it’s incorrect. (e.g. A TIN with more or less than nine digits, or with a mixture of digits and letters)
If you’re missing a TIN, you should start backup withholding and continue it until you receive a TIN.
What happens if I don’t provide my TIN?
We may have to consider withholding 24% every time you sell any crypto and remit to the IRS. This is also the same as "earn" or stacking rewards, every time you get paid, we’ll have to deduct 24% and remit it to the IRS.
If you hold assets on your Okcoin account and do not sell or stake, we won't need to withhold. Okcoin does not hold your assets. This is a requirement from the Internal Revenue Services.
What is the Backup Withholding (BWH-B) Rate?
Rate/Percentage is 24%, effective for all subject payments after December 31, 2017.
What payments are subject to backup withholding?
- Rents and commissions, non-employee compensation for services, royalties, reportable gross proceeds paid to attorneys and other fixed or determinable gains, profits, or income payments reportable on Form 1099-MISC, miscellaneous income
- Non-employee compensation, Commissions, fees, or other payments for work performed as an independent contractor on Form 1099-NEC
- Income from interest, interest reportable on Form 1099-INTDividends and distributions, dividends reportable on Form 1099-DIV
- Taxable distributions received from cooperatives, patronage dividends paid in money or qualified checks reportable on Form 1099-PATR
- Original issue discount, original issue discount reportable on Form 1099-OID, if the payment is in cash
- Proceeds from broker and barter exchange transactions, gross proceeds reportable on Form 1099-B
- Certain gambling winnings, gambling winnings reportable on Form W-2G, unless subject to regular gambling withholding. If not subject to regular gambling withholding, backup withholding only applies if, and only if, the payee does not furnish a taxpayer identification number to the payor.
- Payment card and third party network transactions, gross payments reportable on Form 1099-K
- Form 1099-G payments that are subject to backup withholding under IRC 6041 and 3406(b)(3)(A) which include taxable grants and agricultural payments (1099-G Box 6 or 7)
When do I need to have my TIN on my account by?
Please provide it before December 31st, 2021.
What happens if I miss the deadline? Can I still fix the issue?
You can always provide your tax information on the latest version of Okcoin app or complete our KYC 2 process.