W-9 Implementation Guide

What is a W-9?

W-9 — the IRS form US persons (citizens, green-card holders, US tax residents, and US-formed entities) use to certify their US tax status and provide their Taxpayer Identification Number (SSN for individuals, EIN for entities). A valid W-9 on file exempts the participant from 24% backup withholding on US-source income.

zerohash supports the generation of certified W-9 forms via API. Unlike the W-8 family, the W-9 has no variants. The same form is used for every US person regardless of whether they are an individual or an entity, and regardless of entity type (corporation, partnership, LLC, trust, estate, etc.).

If you have any questions on what requirements apply to your specific customer demographic / how to classify users based on the above descriptions, reach out via your zerohash contact and we will assist you.

When should platforms collect W-9 information?

Any time you onboard a US person through zerohash's US flow. Participants onboarded through zerohash's EU or other non-US entities are governed by local tax documentation requirements and do not need a W-form.

Individuals — collect a W-9 when the participant is a US citizen, green-card holder, or US tax resident
Entities — collect a W-9 when the entity is formed or organized under US law (US corporations, US partnerships, US LLCs, US trusts, US estates, etc.)

Do you already collect certified W-9 forms?

All you need to do is upload them via POST /participants/documents with the appropriate document type and you're done. Make sure to do this for pre-existing customers and on an ongoing basis for new customers.

If the above doesn't apply to you, see the below instructions. If you're already onboarding US customers via zerohash APIs, you're 90% there.

Collect the W-9 fields in your UX

Collect these new data points in your customer journey:

Their TIN/SSN (9 digits, no dashes)
Their typed name as the signature
Mailing address — only if different from the residential address already captured via your normal participant onboarding
Their optional exemption codes:
- payee_exemption field that captures enum values for any applicable payee exemption codes 1 - 13 or NONE on the IRS form W-9
- fatca_reporting_exemption field that captures enum values for any applicable fatca exemption codes A - M or NONE on the IRS form W-9
An indicator that collects whether a user is subject to backup withholdings by the IRS
A checkbox confirming the W-9 attestations (user is not subject to backup withholding, no B-Notice on file)
- What is a B-Notice? A B-notice is an IRS letter telling a payer (like zerohash) that a customer's name and taxpayer ID don't match IRS records. This triggers a requirement to collect a corrected W-9
- Platforms should show IRS attestation language to display alongside the checkbox to collect a proper attestation (see certification language in Section 2 of W-9 here)

If you are also onboarding NNPs (entities), you should also collect:

The entity DBA (doing-business-as) name, the public-facing trade name an entity operates under, when it's different from its legal registered name
Note: Entity type must be specified as one of the following to properly generate a certified W-9 form:
- C_CORPORATION
- S_CORPORATION
- PARTNERSHIP
- TRUST_ESTATE
- LLC_C (LLC that has elected to be taxed as a C corporation)
- LLC_P (LLC taxed as a partnership)
- LLC_S (LLC that has elected to be taxed as an S corporation)
- SOLE_PROPRIETOR
- OTHER

Send the data to zerohash

Platforms can use the same endpoints they're already integrated with provide the required tax data:

If you are onboarding net new individual participants

Example POST /participants/customers/new request:

{
  "first_name": "John",
  "last_name": "Smith",
  "email": "[email protected]",
  "address_one": "123 Main St.",
  "address_two": "Suite 1000",
  "city": "Chicago",
  "zip": "12345",
  "jurisdiction_code": "US-IL",
  "phone_number": "15557778888",
  "date_of_birth": "1985-09-02",
  "id_number_type": "us_passport",
  "id_number": "123456789",
  "citizenship_code": "US",
  "country": "USA",
  "tax_id": "000-00-0000",
  "risk_rating": null,
  "signed_timestamp": 1603378501286,
  "kyc": "pass",
  "kyc_timestamp": 1603378501286,
  "onboarded_location": "US-FL",
  "sanction_screening": "pass",
  "sanction_screening_timestamp": 1603378501286,
  "idv": "pass",
  "employment_status": "full_time",
  "industry": "adult_entertainment",
  "source_of_funds": "salary",
  "signed_agreements": [
    {
      "type": "user_agreement",
      "region": "us",
      "signed_timestamp": 1603378501286
    }
  ],
  "b_notice_receipt": false,
  "w_form_certification": 1667504636159,
  "signature": "signature_data",
  "signature_timestamp": 1667504636159,
  "payee_exemption": "NONE",
  "fatca_reporting_exemption": "NONE",
  "is_not_subject_backup_withholding": true,
  "is_w_form_certified": true
}

If you are updating already-created individual participants

Example PATCH /participants/customers/{participant_code} request:

{ 
 "b_notice_receipt": false,
 "is_w_form_certified": true,
 "w_form_certification": 1667504636159,
 "signature": "signature_data",
 "signature_timestamp": 1667504636159,
 "payee_exemption": "NONE",
 "fatca_reporting_exemption": "NONE",
 "is_not_subject_backup_withholding": true,
,
}

Entity Participants

If you are onboarding net new entity participants

Example POST /participants/entity/new request:

{
  "platform_code": "PLAT01",
  "entity_name": "Entity Name",
  "legal_name": "Legal Name",
  "contact_number": "15557778888",
  "website": "company.com",
  "date_established": "1985-09-02",
  "entity_type": "llc_s",
  "address_one": "123 Main St.",
  "address_two": "Suite 1000",
  "city": "Chicago",
  "postal_code": "12345",
  "tax_id": "000-00-0000",
  "id_issuing_authority": null,
  "risk_rating": null,
  "sanction_screening": "pass",
  "sanction_screening_timestamp": 1603378501286,
  "self_certification_timestamp": 1667504636159,
  "signed_timestamp": 1603378501286,
  "signed_agreements": [
    {
      "type": "user_agreement",
      "region": "us",
      "signed_timestamp": 1603378501286
    }
  ],
  "submitter_email": "[email protected]",
  "submitter_first_name": "Jon",
  "submitter_last_name": "Doe",
  "submitter_title": "Mr.",
  "control_persons": [
    {
      "name": "John Smith",
      "email": "[email protected]",
      "address_one": "123 Main St.",
      "address_two": "Suite 1000",
      "city": "Chicago",
      "postal_code": "12345",
      "jurisdiction_code": "US-IL",
      "date_of_birth": "1985-09-02",
      "phone_number": "15557778888",
      "citizenship_code": "US",
      "tax_id": "000-00-0000",
      "id_number_type": "us_passport",
      "id_number": "123456789",
      "id_issuing_authority": null,
      "sanction_screening": "pass",
      "sanction_screening_timestamp": 1603378501286,
      "kyc": "pass",
      "kyc_timestamp": 1603378501286,
      "control_person": 1
    }
  ],
  "beneficial_owners": [
    {
      "name": "John Smith",
      "email": "[email protected]",
      "address_one": "123 Main St.",
      "address_two": "Suite 1000",
      "city": "Chicago",
      "postal_code": "12345",
      "jurisdiction_code": "US-IL",
      "date_of_birth": "1985-09-02",
      "phone_number": "15557778888",
      "citizenship_code": "US",
      "tax_id": "000-00-0000",
      "id_number_type": "us_passport",
      "id_number": "123456789",
      "id_issuing_authority": null,
      "sanction_screening": "pass",
      "sanction_screening_timestamp": 1603378501286,
      "kyc": "pass",
      "kyc_timestamp": 1603378501286,
      "beneficial_owner": 1,
      "role": ""
    }
  ],
  "incorporation_address": {
    "address_one": "string",
    "address_two": "string",
    "city": "string",
    "jurisdiction_code": "IT-25",
    "postal_code": "string"
  },
  "b_notice_receipt": false,
  "is_w_form_certified": true,
  "w_form_certification": 1667504636159,
  "signature": "signature_data",
  "signature_timestamp": 1667504636159,
  "payee_exemption": "NONE",
  "fatca_reporting_exemption": "NONE",
  "is_not_subject_backup_withholding": true,
  "dba_name": "ABC Trading Co",
  "other_entity_type": "Trust",
  "jurisdiction_code": "US-IL"
}

If you are updating already-created entity participants

Example PATCH /participants/entity/{participant_code} request:

{ 
 "b_notice_receipt": false,
 "is_w_form_certified": true,
 "w_form_certification": 1667504636159,
 "signature": "signature_data",
 "signature_timestamp": 1667504636159,
 "payee_exemption": "NONE",
 "fatca_reporting_exemption": "NONE",
 "is_not_subject_backup_withholding": true,
 "dba_name": "ABC Trading Co",
 "other_entity_type": "Trust",
}

Send account updates as you do today

If a user updates their tax info later, just PATCH the same endpoint with the new values. zerohash handles re-certification on our side.

What you need to know about W-9 Certification

Always pair certification with a timestamp

Whenever you send is_w_form_certified, send w_form_certification (the time the user attested) alongside it. Same for signature and signature_timestamp

Exemptions and B-Notice are rare

Most retail users don't have a payee_exemption or fatca_reporting_exemption. Mark these fields as NONE unless the user indicates otherwise with the relevant code. Please do not leave these fields empty
You should ensure b_notice_receipt is false unless you've received a B-Notice directly from the IRS or have been notified via zerohash of an existing B-Notice against your customer account

When anything changes, just send an update

In the event of a name change, address change, re-certification, or B-Notice resolution, PATCH the customer endpoint with the new values. zerohash handles re-validation

Tax Glossary

Please reference the below descriptions on each of the new W-9 fields listed above and what they mean. For additional information on W-8 support, please see the implementation guide here.

Tax Identification Number

Existing tax_id field that is required for customers onboarded to a US platform
- Platforms should format tax identification numbers in the appropriate formatting (9 digit format)

W-Form Certification Status

is_w_form_certified boolean field that is required for customers onboarded to a US platform
- Must be provided with w_form_certification timestamp field to indicate the user's current certification status
- When true, user can be onboarded without restriction, so long as other mandatory fields are provided at time of onboarding
- When false, user is subject to backup withholding
  - In the event the user re-certifies, the platform must update this field to true and provide an updated w_form_certification

W-Form Certification

w_form_certification timestamp field that is required for customers onboarded to a US platform
- Must be provided with is_w_form_certified boolean field to indicate the time at which the user certified their W-form
- In the event the user transitions from an uncertified to a certified, the platform must provide a new w_form_certification and update is_w_form_certified from false to true

B-Notice Receipt

b_notice_receipt boolean field that indicated whether a user has been flagged in an IRS B-Notice as not having up-to-date tax information
- Value should be set to false if no notice of receipt
- If true, the user is subject to backup withholding until recertified

Backup Withholding

is_not_subject_backup_withholding boolean field that indicated whether a user is subject to backup withholdings by the IRS
- Value should be set to true as a positive attestation that the user is not subject to the withholding
- If false, the user is subject to backup withholding

Signature & Timestamp

signature field that captures customer first and last name as used on the W-form
signature_timestamp field that captures the timestamp at which the user signed their W-form

Tax Exemptions

payee_exemption field that captures enum values for any applicable payee exemption codes 1 - 13 or NONE
fatca_reporting_exemption field that captures enum values for any applicable fatca exemption codes A - M or NONE