Update on international designer ITIN requirements
Posted: Wednesday, July 22, 2015 10:35:57 AM
Hello Everyone,

We wanted to follow up on our recent announcement about non-U.S. Designer payment information. We have received a lot of feedback from our international Designers, and we understand that there is conflicting information from various sources (including the IRS) on the ITIN requirement.

Because we care about our international Designers, Zazzle is temporarily going to take the position that a foreign TIN will suffice to benefit from tax treaty withholding rates while we await additional clarification from the IRS. We have not yet received information from the IRS on the U.S. TIN requirement, so this stance may be temporary and is subject to change at any time. Because Zazzle is a U.S.-based corporation, we are under a legal obligation to comply with the requirements of our governing tax authority, the IRS.

Starting with the August 15th payment, Zazzle will temporarily relax the requirement for an U.S. TIN on the appropriate W-8 form in order to avoid the IRS’s default withholding rate of thirty percent (30%).

We’d like to reiterate that it’s still very important for all non-U.S. Designers and Associates to take action to update their copy of the appropriate W-8 form as soon as possible – even if you qualify for a lower withholding rate, if we don’t receive the correctly-filled-out W-8 form from you, your payment will be reduced by the IRS’s default withholding rate of thirty percent (30%).

Q. I started the process to get an ITIN. Should I continue?
A. Yes, please do continue the process of securing an ITIN. We can’t predict the future, and we don’t yet have clarity on this requirement from the IRS. It’s possible that the requirements for an U.S. TIN may be clarified and solidified in the future by the IRS, and our requirements will change in step.

Q. I submitted my revised W8-BEN form. How do I know if I’m good to go?
A. Designers who submitted correctly-filled-out W-8 forms before the last day of the month of July will be paid on August 15th with the relevant tax treaty deduction withholding rate that is applicable to your country’s tax treaty. As long as a Foreign TIN is submitted, and the other aspects of the form are all filled out correctly, then you’ll be paid based on the percentage withholding requirements for your country’s tax treaty.

Q. I put my payments on hold. Can I select “normal” now and still be paid?
A. For Designers who put their payments on hold, you can simply click the “Normal” button on the Payments Setting page before the last day of the month of July in order to be paid in full (potentially with the relevant tax treaty deduction withholding rate) on August 15th.
Posted: Thursday, July 23, 2015 4:09:37 PM
Thanks to everyone who sent in revised W8 forms. We’ve got quite a bit of backlog of W8 forms to go through – thanks for your patience as we work through them all.
Posted: Wednesday, July 29, 2015 4:59:07 PM
Hi Everyone,

We, again, appreciate your patience and realize that reaching an agreed upon approach with the IRS is taking more time than we had anticipated. We understand you’re anxious, but please know we will be posting any news immediately here on the forum as we receive it. We’d like you to be aware, however, in your quests to get updates that some of the information being shared on social media is inadvertently inaccurate. Right here on the forum is where you’ll be getting the most immediate and accurate information available.


The Zazzle Team
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