What are the tax implications for cryptocurrency traders when choosing between W9 and W8 BEN forms?

1 answers

• Apr 30, 2022 · 3 years ago
  As a cryptocurrency trader, the tax implications of choosing between the W9 and W8 BEN forms can be significant. The W9 form is used by U.S. citizens and residents, and it requires traders to report their cryptocurrency transactions and pay taxes on any gains. This means that U.S. traders will need to accurately track their cryptocurrency transactions and report them on their tax returns. On the other hand, the W8 BEN form is used by non-U.S. individuals, and it allows them to claim tax treaty benefits and potentially reduce their tax liability. Non-U.S. traders should carefully consider their tax obligations and consult with a tax professional to determine the best form to use and ensure compliance with tax laws.
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