All winners of ETHDenver Track awards and Sponsor Bounties must undergo a Know Your Customer (KYC) procedure and submit Tax Forms W8 / W9.
Payment Period
Start: March 18, 2024
Ends: June 15, 2024 at 5:00pm MST
Starting April 15, payouts will be processed only once a month (at the end of the month). Therefore, it’s highly recommended that you complete your Know Your Customer (KYC) requirements and submit your tax forms promptly.
To Claim:
Step 1 — KYC
Winners will receive an email from ETHDenver containing a link to complete the KYC verification through our selected KYC Service Provider.
Step 2 — Tax Collection
Upon successful KYC verification, a link for Tax Form submission will be provided to you.
For foreign residents, ensure you submit a fully completed W8-BEN form. If you need an Individual Taxpayer Identification Number (ITIN) to claim a tax treaty benefit, hopefully, you have already applied, as this process can take 4–7 weeks to complete. Failure to submit a completed W8-Ben will result in a 30% tax withholding per IRS.
Prize Winnings Considered “Individual Income” not “Business Income.”
- US Residents — Must File W9 Tax Form. No Business Claims.
- Non-US– Must File a W8-BEN tax form. No Business Claims.
Step 3–Payment Distribution
Following the completion of KYC verification and Tax Form submission, ETHDenver’s will initiate the transfer of your reward in USDC on Polygon (matic) to your designated wallet address with Devoflio.
Distribution
When a team wins prize money, it’s split so that each team member gets an equal share. For example, if a team of four wins $1,000, each person gets $250.
However, if your team prefers not to split the prize money evenly, you can select one team member to claim all the prizes. This person will also take on the responsibility of dealing with the taxes on the total prize amount. To proceed with this option, every team member must complete a form to officially agree to forfeit their share to the chosen individual.
After receiving all the necessary forms, ETHDenver will then pay the total prize money to that person, who will need to manage the tax implications based on their residency.
Remember, you have two options for prize distribution: split it equally among all team members or appoint one person to claim the entire prize.