Got EIN – What’s next
Hi All.
Is there anyone with experience that can share some insight on what to do once you have received your EIN nr and papers from the IRS?
Do we have to file a tax return every year with the IRS (Form 1120F) and how did you go about applying for tax exemption Is there anything you need to do or does Steam take care of that in the background via the W-8BEN-E?
I have read through the post re this, but people are more talking about how to get and EIN. I’d like to hear from Devs that have already gone through a year or so and what you had to do to satisfy the IRS etc.
I mean we file our local tax return so we have to file with the IRS?
Any advice would be appreciated.
Thank you
Is there anyone with experience that can share some insight on what to do once you have received your EIN nr and papers from the IRS?
Do we have to file a tax return every year with the IRS (Form 1120F) and how did you go about applying for tax exemption Is there anything you need to do or does Steam take care of that in the background via the W-8BEN-E?
I have read through the post re this, but people are more talking about how to get and EIN. I’d like to hear from Devs that have already gone through a year or so and what you had to do to satisfy the IRS etc.
I mean we file our local tax return so we have to file with the IRS?
Any advice would be appreciated.
Thank you
Comments
Thanks
I'm not 100% sure what the law says, but my understanding is the W-8BEN-E form states that you aren't a US entity and aren't earning money in the US. Therefore you aren't paying US taxes on top of the taxes you pay in South Africa (apart from VAT in some territories which Steam takes care of for you).
My understanding is that you should not need to fill in a EIN or SS-4 unless you aren't paying South African taxes (if you pay both US taxes and South African taxes then you are probably doing something wrong).
I'm not a legal expert by any measure.
Ok, got hold if the IRS and the issue is resolved.
I figured I’d share it here in case someone else runs into the same problem.
When I received my SS-4 with my EIN nr It had an instruction on it that I need to file a form 1120F by September
This is not correct you do not need to do so. (Thank goodness, that form looks so complicated I almost soiled myself)
So I called the IRS to enquire about it.
What I mentioned to the lady on the support desk (very friendly and helpful) is that I needed the EIN nr to waiver the withholding taxes and that I’m form SA and we have a tax treaty with the US.
That and my EIN nr was all the information she needed and she fixed it over the phone and removed the requirement for a form 1120f from my account.
So if this happens to you then you can resolve it as above. She did mention that it was good that I called and rectified it otherwise it would have been an issue so if that happens to you in error don’t ignore it. Call them and get it resolved.
Now I’m all done with the business side of things and can fully focus on my games. WooHoo