If you are a US citizen, and you win $600 or more in a calendar year on Loot, and we do not already have your IRS Form W-9 on file, then you must fill out IRS Form W-9 and send it to us before we can deliver your redemption.When your prize winnings trigger this requirement, we will hold the rewards for you in a pending state until we receive your Form W-9. You may continue to enter tournaments while we wait for your W-9, but we cannot release the pending winnings or any future winnings until we receive your W-9. For more information about this law, please visit the IRS Reporting Miscellaneous Income site.
How to submit your W-9
Please print out the attached W-9 form and send it via U.S. Mail to the following address:
PO Box 70595
Sunnyvale, CA 94086
Please do not email or FAX your W-9 form. Shortly after we receive your W-9, we will release any pending winnings and proceed with your redemption request. Below are some answers to the most frequently asked questions regarding this process.
What are IRS Forms W-9 and 1099?
The IRS requires us to submit a Form 1099 to the IRS whenever your winnings exceed $600 or more in a calendar year. The form simply reports the amount of income you earned; we never send any of your winnings to the IRS.
The Form W-9 you send us simply provides the tax-payer information we will need from you (such as social security number) to properly fill out your Form 1099. All Form 1099's we send will come from Playphone Inc., the parent company of Loot.
I already submitted my W-9. Do I have to submit it again if I win $600 or more again?
No. If we already have a W-9 on file for you, then we will not ask you for another one for this year, and you will not need to send another one in the future unless some piece of tax-pertinent information on the form has changed, such as your name, address, etc.
Does Loot withhold any of my winnings for taxes?
No, Loot does not withhold any of your winnings or pay any of your winnings to the IRS. You will collect 100% of your Loot redemption amount if you submit your Form W-9 when we ask for it.
We are required to report your winnings to the IRS via Form 1099, but it is your responsibility to calculate and pay your own taxes on those winnings. You are responsible for all taxes owed on all winnings, whether your net earnings exceed $600 or not, and whether you receive a 1099 from us or not. Please consult an accountant if you have tax questions regarding your Loot winnings.
When are winnings paid? How does this affect my yearly net total?
If we do not yet have your W-9 on file, we will pay winnings that exceed $600 for the calendar year into your account when we receive your W-9. If you wait until the following calendar year to send in your W-9, your winnings will be applied to the year you submitted the W-9, not the year the games ended, because we won't pay your prizes into your account until we receive your W-9. If we already have your W-9 on file, we will pay your winnings within 60 days from the redemption receipt.