Everything You Need to Know About Tax Forms on Linno Fund
Please note that Linno Fund cannot offer tax advice, we encourage you to consult your tax professional or local tax authorities for specific guidance. Below, we’ve outlined essential information about tax forms and requirements you may encounter.
Why Did I Receive a Notice About a Tax Form?
If your Linno Fund campaign has raised at least $600, you will receive a notice to provide additional tax information. This is a requirement by the United States Internal Revenue Service (IRS).
- Threshold Changes: Before January 1, 2024, the threshold was $20,000 and 200 or more backers. Now, campaigns raising $600 or more are subject to this rule.
- Required Forms: Eligible campaign owners will need to complete the information via the Connect Onboarding form. This ensures the necessary tax forms, such as the 1099-K, are accurately processed.
How to Complete Your Connect Onboarding Form
Follow these steps to access and complete your Connect Onboarding form:
- Log into your Linno Fund account.
- Navigate to your campaign and click on the Funding tab.
- Scroll to the Funds Recipient Verification section where the status reads “Not Verified.”
- Click “Verify Your ID” to access the Connect Onboarding form.
- Complete and submit the required information.
- Return to the Funding tab to confirm the status now displays as “Verified.”
If you need further assistance, contact us at [email protected].
What Is a 1099-K Form?
A 1099-K form is used to report certain payment transactions to the IRS, helping improve tax compliance. This form summarizes gross payment transactions for campaign owners who meet the eligibility criteria.
- Gross Reporting: The 1099-K reflects the total gross amount of contributions to your campaign. It does not account for fees, refunds, discounts, or other adjustments.
- Eligibility: Campaign owners with U.S. bank accounts who have raised over $600 in gross funds will receive a 1099-K form.
Who Receives a 1099-K?
The person or entity listed on the receiving bank account is responsible for any applicable taxes. Linno Fund or our payment processors will use the information you provide to send the 1099-K form.
Important Note: Ensure the information on your bank form is accurate, as this will determine who is reported to the IRS.
How to Receive Your 1099-K
Eligible campaign owners will receive their 1099-K form by January 31 each year. Here’s how you’ll receive it:
- E-Delivery (Recommended): Opt into e-delivery through Stripe Express. In late November, Stripe will email instructions to set up e-delivery and confirm your tax information.
- Paper Copy: If you do not opt into e-delivery, your 1099-K will be mailed to your registered address.
Understanding W-8 and W-9 Forms
What Is a W-8?
A W-8 form is for non-U.S.-based campaign owners. It certifies that you are a foreign/non-U.S. person receiving funds not connected to a U.S. trade or business. Ensure the form reflects the account owner listed on the campaign’s receiving bank account.
What Is a W-9?
A W-9 form is for U.S.-based campaign owners. Before issuing a 1099-K, Linno Fund will request you complete a W-9 with your name, address, and Tax Identification Number (TIN). The TIN must match the person or entity listed on the campaign’s receiving bank account.
What If My Campaign Doesn’t Reach $600?
Campaigns that raise less than $600 will not receive any tax forms from Linno Fund. However, you may still have reporting obligations. We recommend consulting a tax professional for assistance in reporting your funds.
Key Dates and Reminders
- Opt into E-Delivery: Look out for Stripe’s email in late November.
- 1099-K Form Issued: By January 31, eligible campaign owners will receive their forms.
- Consult a Tax Professional: For questions about tax obligations, seek advice from a qualified accountant or tax advisor.
For further questions or support, reach out to [email protected]. We’re here to help streamline the process and ensure you have the information needed for compliance.
