What does it take to trigger LL demanding W-8BEN information?

[Rhys Goode]

I have a friend, chased out of SL today, for trying to harvest  $279 (usd), using paypal. 

From what I can glean, if you are not a US citizen, and you transfer more than "x" out of SL, then you have to provide firm identity info: governement issued photoid, passport info, RL name, address, and everything. Courtesly of the Patriot Act, from what I can tell.

But the LL faq, talks about $20,0000 (USD), how does this relate to $279????? There must be a lower threshold, can anyone enlighten?

[HunniHope]

Asking for ID and asking for a tax form are 2 seperate things. Yes LL asks for government issued photo ID when you have withdrawn an amount of cash. This is because LL has to accont for all transactions under US Law, and keep evidence of those withdrawing the cash. Fraud prevention, taxation, etc, so many reasons but its for our benefit in the end.As far as i understand it.

The tax forms kick in at a certain amount, some countries have a tax agreement with America meaning we can earn and be paid in USD whilst living outside the US but not lose a huge chunk of it to the american tax system. 

If you already have such photo ID in your possession thats not out of date it only takes 2 minutes to scan it or take a pic and send it in, and funds are usually released pretty quick after its been received and approved.

[Perrie Juran]

The W8-EBN only applies to International (Non U.S.) individuals.

The  $20,000 applies only to U.S. residents and is information that LL must report to the IRS.

From the FAQ:

What is IRC Section 6050W, and how do I know if it affects me?

This US tax law requires Linden Lab to report to the IRS the total amount of money paid to any US resident.....in excess of $20,000.....