Fiverr W-9 Collection Details. Defining a seller on Fiverr as a “US person” () requires W-9 collection. The W-9 form will be collected from all relevant sellers; US tax authorities may request the W-9 and information regarding your activity on Fiverr.
In certain circumstances, we may disclose the data in your W-9 form, as well as other information related to your use of Fiverr (such as your earnings on Fiverr), with applicable US tax authorities, or as otherwise required by applicable law. We will not use the information included in the W-9 form for any other purpose.
We take great care in maintaining the security of the information provided in the W-9 form, including your SSN. We use strict procedures and security features to prevent unauthorized access to the data included in the W-9 form, and the transmission of your data is also protected by SSL encryption. Once you have filled out your W-9 form, we will automatically activate Two-factor Authentication (2FA) on your next login.
- Who has to go through the W-9 process?
All sellers on Fiverr – both existing and new – will have to declare if they are a US person. If so, they will have to go through the W-9 process. Filling in a W-9 is a legal requirement for US persons.
- What happens if I don’t complete the process?
Sellers that are US persons and fail to complete the W-9 process in 30 days will have their Gigs paused. You will be able to reactivate your Gigs as needed, to allow you to fill in your W-9.
- How will sellers be notified?
Sellers will be notified by email, a top banner notification, and Pin Flash.
- Whose responsibility is it to fill in accurate information?
It is the seller’s responsibility to fill in accurate details and information for their W-9s.
- How will the data on the W-9 be used?
When Fiverr is required under applicable laws, it will send a 1099 form at the end of the year to the applicable tax authorities. For 2021, this applies to US-based sellers who earned at least $20,000 in that year and had at least 200 separate orders. Beginning with tax year 2022, the number-of-transactions threshold (200) is eliminated entirely and the $20,000 gross-payments threshold has been reduced to $600 for third party network transactions.
- What should I do if I receive the following message? “Please correct the details entered for Name and EIR as their validation failed”
The IRS is letting you know that the information that was provided is inaccurate. Please review your documentation and consult with your accountant to ensure that you the form is being filled out correctly. Fiverr is not part of this process, it’s strictly handled by the IRS.
- Will this affect my billing address?
Once a seller submits their W-9, Fiverr will update their billing information. Note that if a seller’s billing address was updated due to W-9 collection, recurring services in Fiverr will have to stop and be re-approved.
- Will the income be money earned or money withdrawn?
It will be money earned. Fiverr considers the money earned at the time the funds have cleared and became available to withdraw. Please consult with your tax professional on the best way to represent funds spent for business purposes.
- Is there any chance Fiverr will start to display our legal names anywhere, or is this all internal only?
In certain circumstances, we may disclose the data in your W-9 form with applicable US tax authorities, or as otherwise required by applicable law. None of this information will be displayed publicly on Fiverr.
- When will the forms be sent out?
Forms will be sent in 2022 for the entire 2021 tax year.
- We’ve already filed taxes for years 2018 and 2019, and have already been paying our estimated monthly business taxes for 2020. How will this affect us?
We suggest that you speak with a tax professional about this question.
- The reporting of 1099 revenue looks to begin for tax year 2020. Is that the first year that will be reported, or will previous years, 2019 and before, be sent to IRS as well?
Forms will be sent in 2021 for the entire 2020 tax year.
- With the 200 transactions in mind, is a “tip” considered a separate transaction?
Any transaction, including tips, is counted toward the 200 transactions. The 1099 will list your total earnings and total tip earnings.
- Are the 1099s going to start from the date we sign the W-9s, or at the start of 2020?
Forms will be sent in 2021 for the entire 2020 tax year.
- I am planning on incorporating my business as a Limited Liability Corporation (LLC). How will Fiverr handle the tax documentation. Will the LLC still need to fill out a W-9 and be treated as a 1099 contractor?
All US persons will be obligated to declare that they are in fact a US person and sign the W-9 form. We suggest speaking to a tax expert to understand the nuances and differences between a freelance contractor and LLC contractor.
- As an LLC contractor, will I be able to update my W-9 on file with Fiverr?
Yes, you will be able to update your W-9 with Fiverr through your Account Settings page.
- I already do a 1099 for PayPal. Will I have to do a 1099 for both PayPal and Fiverr for the same funds?
Fiverr is required under applicable laws to send a 1099 form at the end of the year to the applicable tax authorities. Currently, this applies to US-based sellers who earned at least $20,000 in the said calendar year and had at least 200 separate orders. You will be requested to declare if you are a US person or not, and if so, to fill out the w-9 form. Regarding PayPal, we suggest speaking with a tax professional to understand the process. Please note the changes for 2022. Beginning with tax year 2022, the number-of-transactions threshold (200) is eliminated entirely and the $20,000 gross-payments threshold has been reduced to $600 for third party network transactions.
- How do I know that my Form W-9 compliance check was completed?
If you declared that you were not a “U.S. person,” you’re finished, and no further actions are required on your side.
If you declared that you were a “U.S. person,” the IRS will review your details, and you’ll be notified if you need to take further action.
- How can I reactivate my Gigs if they were paused?
If your Gigs were paused due to not filling out your W-9, you can reactivate them by completing the W-9 check and filling out the form. This applies if you are a as a “US person” (). Once the W-9 check is completed successfully, your Gigs will automatically be reactivated (*).
*Note that this applies only to Gigs that were paused due to the W-9 check.