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Jwd41190
Jun 19, 2012, 11:01 PM
I filled out my tax info in iTunes connect and it asks if I am subject to backup withholding or payee exempt. I ask a relative who deals with taxes and they told me to go with subject to backup withholding and I did. But now after submitting it I believe they are wrong that it should of been the other choice. I am an individual selling apps on the app store and I have never had or fell behind on my taxes. So which is the correct one to choose subject to backup withholding or payee exempt? Thanks



balamw
Jun 22, 2012, 05:41 AM
There have been many threads about similar topics before. E.g. http://forums.macrumors.com/showthread.php?t=752943

B

Jwd41190
Jun 22, 2012, 10:07 AM
That thread is absolutely no help to me. It does not mention anything about what I am asking about...

CalWizrd
Jun 22, 2012, 10:20 AM
That thread is absolutely no help to me. It does not mention anything about what I am asking about...

Not sure if you should take any more tax advice from that relative.

If you were subject to backup withholding, believe me, you would be painfully aware of that fact.

chown33
Jun 22, 2012, 10:55 AM
That thread is absolutely no help to me. It does not mention anything about what I am asking about...

It does, however, ask some important tax questions you haven't answered:

What country are you in? If it's the USA, what state? City? Those are pretty important for tax issues.

You should get definitive tax advice from a tax or accounting professional. Asking here without getting professional advice is just begging for tax troubles.

ahan.tm
Jun 23, 2012, 12:46 PM
According to the W-9 instructions included on the tax page of iTunes Connect, it states:
Payees Exempt From Backup Withholding

Even if the payee does not provide a TIN in the manner required, you are not required to backup withhold on any payments you make if the payee is:

1. An organization exempt from tax under
section 501(a), any IRA, or a custodial account under section 403(b)(7) if the account satisfies the requirements of section 401(f)(2);
2. The United States or any of its agencies or instrumentalities;
3. A state, the District of Columbia, a possession of the United States, or any of their political subdivisions, agencies, or instrumentalities;
4. A foreign government or any of its political subdivisions, agencies, or instrumentalities; or
5. An international organization or any of its agencies or instrumentalities.
Other payees that may be exempt from backup withholding include:
6. A corporation;
7. A foreign central bank of issue;
8. A dealer in securities or commodities required to
register in the United States, the District of Columbia, or a possession of the United States;
9. A futures commission merchant registered with the Commodity Futures Trading Commission;
10. A real estate investment trust;
11. An entity registered at all times during the tax year under the Investment Company Act of 1940;
12. A common trust fund operated by a bank under section 584(a);
13. A financial institution;
14. A middleman known in the investment community as a nominee or custodian; or
15. A trust exempt from tax under section 664 or described in section 4947.

The following types of payments are exempt from backup withholding as indicated for items 1 through 15 above.

In the end, it is probably best to contact a CPA or other tax professional. I had the same problem, and my accountant sorted it all out.

max555
Apr 9, 2013, 08:11 PM
Hi, I have the same issue. I am submitting my app for the first time and by mistake selected incorrect option on tax form. I need to change it to exempt payee as I do not have any tax issues. Is there a way to correct it? Which tax forms do I need to send to ituneconnect?

Kashsystems
Apr 9, 2013, 08:23 PM
Hi, I have the same issue. I am submitting my app for the first time and by mistake selected incorrect option on tax form. I need to change it to exempt payee as I do not have any tax issues. Is there a way to correct it? Which tax forms do I need to send to ituneconnect?

Thats not what exempt payee means.

Go talk to cpa if you aren't sure.

I can tell you right now if you are in the U.S.A. Apple is basically asking if you are a LLC or Corporation with that question.