ID and TAX ID Information Required by Linden Labs - Pending Processes Credits On Hold.

[LillyBeth Filth]

I noticed a few people asking about the delay in their process credits and I was about to contact LL myself too but as it happened, I got the email at the bottom of this post today. (Scroll to bottom)

Linden Labs are now putting a hold on all pending process credits until a W-8BEN (TAX) form has been completed and returned by to them.

They also require photograph evidence of your ID such as a passport or driving license.

(See Below)

The W-8BEN form is a standard TAX form required by all third party websites who allow merchants to sell through or on their platform. Such as contentparadise.com and Renderosity.com to name a couple of examples. 

 For Secondlife.com, this has been long overdue IMO and will cause all kinds of stress and worry for those who have been cashing out but not declaring it to their countries TAX department and for those who for what ever reason, do not want their real ID to be made official and have income tied up in Linden Labs.

Furthermore, all previous Process Credits remain on record so if you do provide this information, there is a possibility that the TAX will be checking how much income has been withdrawn in your name over the months, years and how long you have been paying TAX.

I wish they had given us some notice as now my money will be locked until I can renew my passport and that can take a minimum of three weeks.

                                                ---------------------------------------------------------------------

Case: 01844731
Avatar: LillyBeth Filth 
Type: Unable to determine
Status: Information Requested
  Dear LillyBeth Filth,

Linden Lab is required by applicable law to obtain, verify and maintain information identifying each person or legal entity who maintains an account which meets certain minimum standards.

Due to the volume and/or amount of Process Credit Requests you have submitted this year, Linden Lab is now required to collect and confirm the following account information from you:

•    Name
•    Date of birth
•    Address
•    Identification number

We are using EchoSign to facilitate the collection of this information. Please use the relevant link below to provide the above-requested information.

•    U.S. - https://secure.echosign.com/public/hostedForm?formid=7X8TPB4E4U4I5C
•    Non-U.S. - https://secure.echosign.com/public/hostedForm?formid=7XBB3LN2WIXD4M

Please complete and submit the form. You should then receive an email from EchoSign containing a confirmation link. You must click the link in that confirmation e-mail in order to complete the process. If you do not receive a confirmation e-mail, please check your spam/junk filters.

In addition to the form itself, we are required to obtain a copy of your government-issued photo identification (ID). The information on the ID must be current (i.e. not expired) and must match the information your submitted on the form.

IMPORTANT:
1. Please be certain to include the Avatar Name where it is requested on the form. If you are not certain which account needs to provide the information, please look above at the beginning of this email/case; it is addressed to your Avatar Name.
2. You must enter your name exactly as it appears on your tax forms.

The following are acceptable forms of photo ID:
•    Driver's license
•    Military ID card
•    Passport
•    Any other form of government-issued photo ID

If your photo ID does not display your address, you must also provide us with a copy of a current utility or telephone bill. The name and address to which the bill is addressed must match the photo ID.

In the meantime, it is necessary for us to place a hold on any and all Process Credit Requests for your account until we receive your form and supporting documentation.

You must submit the form and identification within thirty (30) days of the date of this request. If you have not complied with this request within such time, we will place your account(s) on Administrative Hold until we receive such information. You may or may not receive a reminder; we recommend that you promptly submit the requested information to avoid any adverse effect to your Second Life account.

If you have additional accounts under which you transact with Linden Lab, we encourage you to provide the names of those avatars at this time to receiving duplicate information requests. You should include those Avatar Names on the EchoSign form in the appropriate place.

We apologize for any inconvenience and appreciate your cooperation.

Kind Regards,
Linden Lab

[Pamela Galli]

http://community.secondlife.com/t5/General-Discussion-Forum/Patriot-Act-Letter-from-LL/m-p/2437811#U2437811

[West Habercom]

Yep... I got that today, finally someone replied to my ticket. I filled it out sent it in... now I'll probably have to wait another two weeks befoer they tell tell me I should have my money within 5 business days..

I wonder... there is a piece in there talking about Photo ID. But no mention of where to send it (unless I'm blind). Anyone go through this process? If so, where'd you send it to?

[KarenMichelle Lane]

I so agree LillyBeth,

Linden Lab / Linden Research may certainly request additional information when your Cash-out [Process Credit] activities exceed the US Tax Reporting Threshold per annum [usually $600.00]. This triggers the IRS reporting requirement by Linden Lab to send out a MISC 1099 Income document to the legal account holder by the 28th of January. These 1099s are also reported electronically to the IRS by February 28th of the next tax year or by paper transaction by the end of March of the next tax year. So the 2013 1099 Misc reporting period is coming up now.

The Form W-9 (for U.S. residents) and Form W-8BEN (for non-U.S. residents) forms are the correct forms for supplying this information to Linden Lab.

Get these documents here if you don't trust the Adobe EchoSign process. [i personally only use the Adobe EchoSign process when it is hosted directly by the requesting company.]

Info: http://www.irs.gov/uac/Form-W-9,-Request-for-Taxpayer-Identification-Number-and-Certification

Form: http://www.irs.gov/pub/irs-pdf/fw9.pdf

Info: http://www.irs.gov/uac/Form-W-8BEN,-Certificate-of-Foreign-Status-of-Beneficial-Owner-for-United-Sta...

Form: http://www.irs.gov/pub/irs-pdf/fw8ben.pdf

This is what Linden Lab should have also sent you in their email. Not only an Adobe EchoSign request.

After you have completed these forms you may scan & email, scan and post to the Support Ticket, or fax, or snail-mail them to Linden Lab. Linden Lab simply needs to keep these forms on file for all individuals who are eligible to receive 1099 Misc statements at the end of the tax year.

The purpose of the valid ID is to comply with both the State of California & US Federal requirements that a legal identification be reviewed and on-file that supports who you are. It is not needed for the IRS reporting requirements. As a private individual receiving a 1099 document from a corporation you are considered an exempt contract employee of Linden Lab. Exempt since you are not contracted by LL to play/work here. Thus the need to "know" who you are for the limited wording of applicable laws.

 

[Dresden Ceriano]

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West Habercom wrote:

Yep... I got that today, finally someone replied to my ticket. I filled it out sent it in... now I'll probably have to wait another two weeks befoer they tell tell me I should have my money within 5 business days..

I wonder... there is a piece in there talking about Photo ID. But no mention of where to send it (unless I'm blind). Anyone go through this process? If so, where'd you send it to?

---

Just take a picture of your ID and attach it to the ticket.

...Dres

[West Habercom]

Yep, did that... thanks. Just hope it doesnt take them another 2 weeks.

@ Karen ... THANKS!.  I suspect there will be a whole lot more people that are going to start screaming about this (moreso than late 2013).

[Phil Deakins]

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LillyBeth Filth wrote:

Linden Labs are now putting a hold on all pending process credits until a W-8BEN (TAX) form has been completed and returned by to them.

---

According to the email you received, what you wrote is not true. What it says in the email is, "Due to the volume and/or amount of Process Credit Requests you have submitted this year". So those who are required to fill the forms in are those who cash out above a certain amount, or above a certain amount within a certain time period (a year), but not everyone.

[LillyBeth Filth]

Phil,

When I set up my graphic content on 3rd party websites such as contentparadise.com, renderosity.com turbosquid.com etc they all send me a W-8BEN form and won't allow me or indeed anyone to sell on their platform until you complete and return.
Some such as turbosquid.com will allow you to sell on their platform but they take 30% of your royalities as USA Tax until such time you can verify you do not need to pay TAX in the USA because you are aready paying it in your own country.

It is a legal requirement for any US online business e-commerce website who have people making money through their business platform to ensure people are tax registered and this is why Linden Labs are doing this.  They have to by law.

The threshold for US citizens is $600 a year i believe but don't quote me on that so as long as people are not cashing out more than $600 a year and they live in the USA then, no they probably won't need to complete this form.

Time will tell but I really don't think this is aimed at just a select few people. I make a part time income from my SL sales...

[Phil Deakins]

I was just pointing out that LL mentioned the amount and time period in their email, which implies that the form will only be required from those who reach/exceed the amount in the time period. Even though those other companies you mentioned apply it to everyone, you did state an mount per period, below which the form isn't required. I was only pointing it out

[AnaSmith12]

My case is no different from the others, my husband tried to process credit for paypal, one in 01/09 and another on 01/11, we note the delay of payment, then decided to search here in the forum if there was someone with the same problem when I found the post Lilibeth Filth (thank you), he immediately phoned Linden lab, and was informed that both payments were on hold until the completion of Tax Form, Linden lab sent the form he filled in and sent back to LL.
My question:
Anybody here who sent the completed form back to LL had any news about when they go to process payments on hold? They gave some time to pay upon receipt of the form? Will we have to wait another 5 working days? I'm worried, because as many here have expenses RL and SL, and are all delayed.
My very Thank you all, and I hope we have solved our problems.

Ana.

[West Habercom]

I filled it out. Got a message from them the next day saying everything was in order, and later that evening, I got the money processed. So figure one or two days after they confirm you have submitted everything correctly.

[Carcinia Polano]

Wow, you are a lot luckier than I am, I did 2 process credits one on 1-9 and the next on 1-16, then on 

1-20 I get the email....filed out the form sent my drivers license immediately and to date nothing. 

Maybe they should have sent out the email, given us the 30 days then put the hold on the accounts,

 if not in compliance. Even tried calling billing and they can't help with this issue. 

Yet another huge blunder by LL IMHO.

[AnaSmith12]

We are in the same boat! sent my Form in 01/22, and no answers....that billing department is a sh%$it, they cant say how long it will be solved, and that they are doing everything to get it solved, an as soon as they CAN , they will answer the ticket, heard it 1 million times by phone and by live chat.

[KarenMichelle Lane]

For anyone waiting to hear from Linden Lab on their proper form and identification submissions I imagine that a temporary tax compliance and/or accounting employee is probably being utilized to complete these. Why? Because it's what so many businesses do of the Linden Lab size.

[Carcinia Polano]

Yesterday they informed me that they had the required information and today both the process credit requests appeared in my account. (I find this interesting when normally it takes a week.) While happy this is over, I have lost what little faith I had in LL. Their whole approach and implementation of these new requirements lack any professionalism one would expect. Oh sorry I forgot, we're talking about LL here. Makes me wonder what it will be next, a pint of blood, remote access to my network, maybe my first born child :-) OK my little rant is over, good luck in getting your situation worked out!

[AnaSmith12]

well, I really dont know what else to do, my forms were sent in 01/21 , no responses till now< i already did 1000 coments in the open ticket, subimited a new one, and the answer is always the same to comment in the open ticket, that same ticket that they dont answer...billing department never can inform, neither live chat, I got a premium account to see if would change something, but nothing changed, my bills and rl rent ar all overdue, because i have money there since 01/09, i am starting to beeing desperate!

[AnaSmith12]

I would like to say thanks to all nice people from this Forum, FINALLY yesterday i got an email, saying that my account now is updated, and this morning I got my money! Thank you everybody! peace, love, and health!

Kisses

Ana.

[Unique Moyet]

so they took like 10 days to respond to your case and send your money .  Its been 2 days for me and no response

[jimmythesaint]

HOW COME ITS NOT REQUESTED WHEN WE BUY LINDEN ALSO ANY WAY TO GET A PRINT OUT OF THE LINDENS WE BOUGHT  BOUGHT JUST IBIS IN REAL LOST MY ASS  MY TAX MAN SAID I DEFIANTLY CAN WHITE OFF MY LOSSES LIKE I HAVE NEVER CASHED OUT BUT SPENT MY GUESS 10 TO 20 K IN USA DOLLARS

THANK YOU

 

[Perrie Juran]

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jimmythesaint wrote:

HOW COME ITS NOT REQUESTED WHEN WE BUY LINDEN ALSO ANY WAY TO GET A PRINT OUT OF THE LINDENS WE BOUGHT  BOUGHT JUST IBIS IN REAL LOST MY ASS  MY TAX MAN SAID I DEFIANTLY CAN WHITE OFF MY LOSSES LIKE I HAVE NEVER CASHED OUT BUT SPENT MY GUESS 10 TO 20 K IN USA DOLLARS

THANK YOU

 

---

First off, may I suggest you spend a little money on a new keyboard.  Your CAP LOCK appears to be stuck.

Second, if you want to know why the form is not required for purchasing L$, why don't you ask your Tax Man?

Lastly, you can download your account statements from your Dashboard.   Account/Account Statements.

[KarenMichelle Lane]

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jimmythesaint wrote:

HOW COME ITS NOT REQUESTED WHEN WE BUY LINDEN ALSO ANY WAY TO GET A PRINT OUT OF THE LINDENS WE BOUGHT  BOUGHT JUST IBIS IN REAL LOST MY ASS  MY TAX MAN SAID I DEFIANTLY CAN WHITE OFF MY LOSSES LIKE I HAVE NEVER CASHED OUT BUT SPENT MY GUESS 10 TO 20 K IN USA DOLLARS

THANK YOU

 

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You can indeed file a tax return showing your business [DBA and/or Corporation] income & expenses and take the appropriate and allowed expenses. Be very careful doing this because all your expenditures in SecondLife will not qualify as business expenses. "def: Losses made by a business where business expenses exceed business income. You need to adjust business losses to arrive at allowable losses for tax purposes."

Your "Tax Person" can advise you. It is up to you to keep these expenditure records. Also, making $Lindens and using $Lindens to purchase things in-world are not qualified expenditures or expenses. Purchasing $Lindens with US Dollars to capitalize your in-world business may qualify as an expense dependent on the usage. To be sure, selling $Linden's to fund your LL USD Balance and then cashing that out is considered income.

[Amber Swallowtail]

:matte-motes-angry: I'm so fed up with this, I have so many process credits waiting, I've sent everything to them and confirmed my eSignture twice as they said they had not recieved the first one. I just hope I receive it all soon as I don't work rl so the money is very important to me. I'm worried that it will be forgotten about and lost.

[Victoria Lovelace]

Hey guys, Im new to all of this (taxes). I am a US resident and currently second life is my only income. Does this mean I have to file taxes to the IRS now? Or do I only need to fill this w-9 form out and im done with it?

[Dillon Levenque]

It's hard for me to understand how a US resident could be new to taxes.  I can only assume you've never had a job in RL and SL is  the only place you've ever earned money. Lucky you, if that's the case.

Anyway. If you have an income (from SL or from working at the car wash) and you are a US resident, then you must pay income tax on that money. How much, if any, you have to pay depends on how much you earned and a whole lot of other variables. Only you or the person/company you pay to figure out your taxes can answer that.

[Pamela Galli]

And be prepared to pay the back taxes you owe as well.