W-9 collection

Defining a seller on Fiverr as a "U.S. person" (as defined by the IRS) requires W-9 collection.
The W-9 form will be collected from all relevant sellers; U.S. tax authorities may request the W-9, 1099K form, and information regarding your activity on Fiverr.

Data Privacy and Security

When you will fill in the W-9 form, you will be required to provide your personal information, such as your full name, address, and social security number.

In certain circumstances, we may disclose the data in your W-9 form, and other tax forms (such as 1099K form), as well as other information related to your use of Fiverr (such as your earnings on Fiverr), with applicable U.S. tax authorities, or as otherwise required by applicable law. We also share such information with service providers we use to collect and process your information. We will not use the information included in the W-9 form for any other purpose. We will retain the information listed on the W-9 form for as long as required by applicable laws. 

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.

Learn more with Fiverr's Privacy Policy.

FAQs

1. 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 U.S. person. If so, they will have to go through the W-9 process. Filling in a W-9 is a legal requirement for U.S. persons.

2. What happens if I don't complete the process?
Sellers that are U.S. 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.

3. What happens when my application is rejected?
If you are unsure as to why your application was rejected, please reach out to Customer Support for assistance.

4. How will sellers be notified?
Sellers will be notified by email, a top banner notification, and Pin Flash.

5. 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. We recommend contacting your financial advisor if you require assistance.

6. How will the data on the W-9 be used?
When Fiverr is required under applicable laws, it will send a 1099K form at the end of the year to the applicable tax authorities.

Note: For the tax year 2022, this applies to U.S.-based sellers who earned at least $20,000 in that year and had at least 200 separate orders.
Beginning with the tax year 2023, 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.


7. 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 the form is being filled out correctly.

Note: Fiverr is not part of this process, it's strictly handled by the IRS.

8. Will this affect my billing address?
Once a seller submits their W-9, Fiverr will update their billing information.

Note: If a seller’s billing address was updated due to W-9 collection, recurring services in Fiverr will have to stop and be reapproved.

9. 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 become available to withdraw.
Please consult with your tax professional on the best way to represent funds spent for business purposes.

10. Is there any chance Fiverr will start to display our legal names anywhere, or is this all internal only?
None of this information will be displayed publicly on Fiverr.
In certain circumstances, we may disclose the data in your W-9 form with applicable U.S. tax authorities, or as otherwise required by applicable law.

11. When will the forms be sent out?
Forms will be sent during the current January for the entire previous tax year.

For example: Forms for January 2024 will be sent in for the entire 2023 tax year.


12. We've already filed taxes for the previous, and have already been paying our estimated monthly business taxes for the current year. How will this affect us?
If, for example, you've already filed taxes for years 2021 and 2022, and have already been paying our estimated monthly business taxes for 2023, we highly recommend that you speak with a tax professional about this question.

13. 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.

14. 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 form will list your total earnings and total tip earnings.

15. Are the 1099s going to start from the date we sign the W-9s, or at the start of the new year?
Forms will be sent in the upcoming year for the entire previous tax year.

For example: Forms will be sent in 2023 for the entire 2022 tax year.


16. 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 U.S. persons will be obligated to declare that they are in fact a U.S. 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 an LLC contractor.

17. 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.

18. I already filled out a 1099 form for PayPal. Will I have to submit a 1099 form 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.

Note: Currently, this applies to U.S.-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 U.S. person or not.
If you are a U.S. person, you'll be required 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 2023:
Beginning with the tax year 2023, 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.

19. 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.

20. 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 "U.S. person" (as defined by the IRS). Once the W-9 check is completed successfully, your Gigs will automatically be reactivated.
Note: This applies only to Gigs that were paused due to the W-9 check.

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