# Tax FAQ for Brands
While income earned on impact.com doesn't have any taxes withheld from it, impact.com can't release your payouts to a partner unless they submit tax forms to meet compliance standards.
Why does impact.com need partner tax forms?
These tax forms are required by the Internal Revenue Service (IRS) and the United States government for income reporting purposes. Every partner based in the U.S. or working with U.S.-based brands may be required to submit an electronic tax form to comply with U.S. tax law.
For U.S. partners, a W-9 tax form is required once their yearly earnings exceed the IRS threshold of $2,000 USD in a U.S. tax year (January 1 to December 31). Non-U.S. partners may be required to submit the appropriate W-8 form.
Failure to comply with U.S. tax compliance laws causes a major risk to both brands and partners alike. The submission and collection of valid, up-to-date W9/W8 tax forms is mandatory and serves as a protection for all parties involved.
There are [6 possible tax forms](https://app.gitbook.com/s/b2rE79d9UhOKZQLgzSqx/what-would-you-like-to-learn-about/platform-features/finance/finance-documents/electronic-tax-documents-for-partners-explained) a partner can use and they must determine the form that is relevant for them. The 3 most commonly submitted tax forms are:
* **W-9** — For all partners (individuals and entities) based in the U.S.
* **W-8 BEN** — For non-U.S.-based individuals partnered with U.S.-based brands.
* **W-8 BEN-E** — For non-U.S.-based entities/companies partnered with U.S.-based brands.
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If your partners operate under the [invoicing via an impact.com entity](https://app.gitbook.com/s/hRN1rcrim887TwHLBjac/readme/understanding-impactcoms-trading-models) invoicing method, you are not required to collect W-8 forms for those partners.
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What's next after partners submit their tax forms?
A tax form must pass review before the partner can meet impact.com's payout requirements. Here's an overview of our tax form review process:
1. Your partner submits a tax form.
2. impact.com processes the document using IRS-compliant rules. These rules determine whether the document is valid, invalid, or needs further attention.
3. If the system flags the document for further attention, a tax specialist will review it manually and determine the document's final status as either valid or invalid.
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**Note:** Most of this process is automated, but any documents requiring specialist review are handled within a week from the partner's submission.
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What does it mean if a tax form doesn't pass review?
See the most common reasons why submitted tax forms don't pass review:
| Reason | Explanation | Solution |
| ---------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Incorrect tax form | The partner submitted a W-8 form but indicated that they were U.S.-based (or provided information linked to a U.S.-based residence or business). | The partner should submit a W9 tax form if they are a U.S. tax resident, **OR** resubmit a W8 tax form that does not state they are a U.S. tax resident. See [Submit Your Electronic Tax Document](https://app.gitbook.com/s/b2rE79d9UhOKZQLgzSqx/what-would-you-like-to-learn-about/platform-features/finance/submit-your-electronic-tax-document) for reference. |
| Incomplete tax form | The partner submitted a tax form with missing data. | The partner should resubmit their tax form, ensuring that all fields are filled in. See [Submit Your Electronic Tax Document](https://app.gitbook.com/s/b2rE79d9UhOKZQLgzSqx/what-would-you-like-to-learn-about/platform-features/finance/submit-your-electronic-tax-document) for guidance. |
| Mismatched information | The partner's tax form information doesn't match the information they provided to impact.com (e.g., their name or business name). | The partner should correct their company information or resubmit their tax form with the corrected information. See [Submit Your Electronic Tax Document](https://app.gitbook.com/s/b2rE79d9UhOKZQLgzSqx/what-would-you-like-to-learn-about/platform-features/finance/submit-your-electronic-tax-document) for reference. |
| Missing TIN | The partner tried to make a treaty claim without providing a Taxpayer Identification Number (TIN). | The partner should resubmit their tax form after providing a U.S. or Foreign TIN. See the [tax form validation criteria](https://app.gitbook.com/s/b2rE79d9UhOKZQLgzSqx/what-would-you-like-to-learn-about/platform-features/finance/finance-documents/electronic-tax-documents-for-partners-explained) for more details. |
| No treaty claim made | The partner's permanent residence is in a country with which the U.S. has a tax treaty, but they failed to make a treaty claim. | The partner should resubmit their tax form after making a treaty claim. See the [tax form validation criteria](https://app.gitbook.com/s/b2rE79d9UhOKZQLgzSqx/what-would-you-like-to-learn-about/platform-features/finance/finance-documents/electronic-tax-documents-for-partners-explained) for more details. |
| Irregular form type | The partner submitted an unconventional tax form (e.g., W-8 IMY, W-8 ECI, or W-8 EXP) without the required accompanying certifications and/or attachments **OR** the incorrect tax form was filled out. | The partner should make sure that they submit the correct tax form type and provide any necessary accompanying information, certifications, and attachments. See [Electronic Tax Documents for Partners Explained](https://app.gitbook.com/s/b2rE79d9UhOKZQLgzSqx/what-would-you-like-to-learn-about/platform-features/finance/finance-documents/electronic-tax-documents-for-partners-explained). |
How does this process protect my interests?
The tax form review process ensures top-notch compliance, always keeping your interests at the forefront. This is done in the following ways:
* **Accurate tax reporting**
Partner-submitted tax forms are used to ensure compliance with IRS regulations.
* **Automated validation**
Forms are quickly processed, with additional reviews by tax specialists as needed.
* **Ongoing compliance monitoring**
impact.com's processes keep compliance up to date.
#### Learn more
Learn more about impact.com's tax document requirements in these partner-facing articles below:
* [Electronic Tax Documents for Partners Explained](https://app.gitbook.com/s/b2rE79d9UhOKZQLgzSqx/what-would-you-like-to-learn-about/platform-features/finance/finance-documents/electronic-tax-documents-for-partners-explained)
* [Payment Requirements Explained for Partners](https://app.gitbook.com/s/b2rE79d9UhOKZQLgzSqx/what-would-you-like-to-learn-about/platform-features/finance/payment-requirements-explained-for-partners)
* [Submit Your Electronic Tax Document](https://app.gitbook.com/s/b2rE79d9UhOKZQLgzSqx/what-would-you-like-to-learn-about/platform-features/finance/submit-your-electronic-tax-document)
* Optionally, see the brand-facing article [W-9 Compliance Explained for Advocate](https://help.impact.com/brand/what-would-you-like-to-learn-about/advocate-program/advocate-program-settings/w-9-compliance-explained-for-advocate)