What happens if I don’t certify my tax status?

We are required by law to make sure members with an open SoFi account that require a W-9, certify their tax status. If you don't certify your tax status, you will be subject to backup withholding on reportable payments (transactions like bonus, interest, dividends, etc. that earn you money). Backup withholding will be taken at a rate of 24%. Once it is applied to a transaction, it cannot be reversed. You can provide your tax certification or additional documentation needed to stop and prevent future withholding. Also, members who are charged backup withholding will need to report the withheld amounts on their federal tax return.

If you are a Non-Permanent Resident Alien (NPRA) who is required to submit a Form W8-BEN and you do not complete the certification process within 30 days of your account opening, your account will be subject to backup withholding. This means SoFi is required by the IRS to withhold 24% from any interest earned and cash bonus promotions paid to you.

If your existing W8-BEN form expires, you must complete the renewal certification process. If you fail to recertify by the due date, your account will be placed under backup withholding.