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.
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 needs to submit an electronic tax form to comply with US tax law. 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 a partner can use and they must determine the form that is relevant for them. The 3 most commonly submitted tax forms are:
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:
Your partner submits a tax form.
impact.com processes the document using IRS-compliant rules. These rules determine whether the document is valid, invalid, or needs further attention.
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.
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 as a Partner 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 as a Partner 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 as a Partner 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 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 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. |
The tax form review process ensures top-notch compliance, always keeping your interests at the forefront. This is done in the following ways:
Learn more about impact.com's tax document requirements in the partner-facing articles below: