Failure to file the required tax forms can result in significant penalties. To avoid these consequences, it's crucial to submit any outstanding penalty amounts promptly.

If you don't reside in the U.S. but operate a business there, you are subject to U.S. taxes. You'll need to file your tax returns using Form 1040-NR and, if it's your first time filing, include Form W-7 to obtain an ITIN.

A W9, or 'Request for Taxpayer Identification Number and Certification,' is a form businesses use to collect taxpayer details from freelancers or independent contractors. If you pay a freelancer more than $600 in a tax year, you must obtain a W9 from them. The W9 itself is not sent to the IRS but is used to prepare Form 1099-NEC, which reports non-employee compensation to the IRS at year-end. Essentially, the W9 is an informational form that helps businesses file accurate tax reports.

These forms are primarily used by foreign entities and individuals to declare their tax status in the U.S. W-8BEN-E is used by foreign businesses to certify their foreign status and claim tax treaty benefits, helping reduce or eliminate U.S. withholding tax. W-8ECI applies to foreign individuals or entities earning income effectively connected to a U.S. trade or business. Unlike W-8BEN or W-8BEN-E, income reported on W-8ECI is taxed at the same graduated rates as U.S. citizens. W-8EXP is used by foreign governments, tax-exempt organizations, and foreign central banks to claim tax exemption or reduced withholding under U.S. tax laws.

Non-compliance can result in penalties of $250 per instance, with higher fines for intentional disregard of requirements. Ensuring timely and accurate filings helps avoid these penalties. At Micahguru, we are able to make sure these are filed on a timely basis to ensure compliance.

Form 6166 is the TRC for the United States, with the official IRS title being “Certification of US Tax Residency.” t is used by US residents to show foreign governments that they are eligible for tax treaty benefits. Example: A US resident who works as an engineer travels to Norway to work for a few weeks out of the year on a new pipeline. He was paid by a Norwegian company for work performed in Norway. To avoid being taxed at the higher rates in Norway and instead claim those wages in the US, he would need to present a US TRC: Form 6166. At Micahguru, we can assist our customers with directly obtaining this form.