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Question: Is a W9 tax form with the beginning sequence of the tax number starting with 98 usually a red flag to indicate that a WH should ultimately need to be completed as this would indicate that the entity is not domestic right?
It seems like you may be confusing or mixing two different forms: the W-9 and the W-8. A W-9 (Request for Taxpayer Identification Number and Certification) is for U.S. citizens, U.S. resident aliens, and domestic entities, such as U.S. companies or partnerships. The taxpayer identification number (TIN) used on a W-9 is usually a Social Security Number (SSN) or an Employer Identification Number (EIN). On the other hand, a W-8 form (for example, W-8BEN, W-8BEN-E, or W-8ECI) is for foreign individuals or entities to certify their non-U.S. status for tax withholding purposes. The foreign entities might provide their foreign taxpayer identification number (FTIN), which could start with any sequence, depending on the country's numbering system. If you encounter a W-9 form with a TIN starting with 98, it could potentially be a mistake. Proper verification is necessary to confirm the tax number's validity. If the entity turns out to be non-domestic, a W-8 form would be more appropriate. In any case, consulting a tax advisor or accountant is recommended to ensure that the correct tax forms are completed and withholdings are accurate.
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