Protecting Personal Privacy
In recent times, there has been an increasing need for individuals to undergo tax identification verification. While this process is not inherently harmful, newer platforms and companies may overlook important information required by local governments. It is important to note that this article does not provide legal advice, as we are not lawyers, and CivitAI assumes no responsibility for the content herein. This article serves as a general guide to help you understand the key considerations involved.
Please keep in mind that every country and jurisdiction, whether related to citizenship or otherwise, has its own unique requirements and regulations.
Also this is NOT A FEAR MONGERING article: Don't stray too far into the "Legalese" of this article it's merely a guide to personal privacy as places offer more than just "SPONSORSHIP" for this sort of thing.
Ok, so we are US citizens, but we live overseas, and we have to go through the tax verification process based on our US citizenship. It's important to note that the United States and Eritrea are the only two countries that require this type of tax payment regardless of where you live. When we registered for onboarding on Twitch, we were required to fill out a W-2 form, regardless of the country we resided in, and provide our Social Security Number (SSN) or Tax Identification Number (TIN), along with any other legal requirements.
1. Understand Tax Verification Requirements:
Familiarize yourself with the specific tax verification requirements of the platforms or jurisdictions you engage with. Gain a clear understanding of what information is necessary for tax purposes and ensure compliance with relevant regulations.
a. WHAT IS A Tax VERIFICATION?
Tax verification typically becomes necessary when you earn more than just small commissions or when you have what is considered 'taxable income.' The specific requirements for tax verification vary from country to country and even from state to state. If you are a US citizen residing within the United States, you will need to comply with various federal and state tax laws.
2. Share Minimum Required Information:
a. What INFORMATION might be asked of me?
They might ask you for TAX/LEGAL information such as your name, or business name, bank or payment gateway details. A good list of proper information to be asked depending on the site could be:
During a tax verification process, the following information is commonly requested:
1. Personal Information: This includes your full name, date of birth, and contact details.
2. Tax Identification Number: Depending on the country, this could be your Social Security Number (SSN) in the United States, or a similar identification number in other countries.
3. Citizenship and Residency Status: You may be asked to provide information about your citizenship and residency status, such as your country of citizenship and the duration of your residency.
4. Income Details: You may need to provide information about your income, including the sources and amounts earned.
5. Employment Details: If applicable, you may need to provide information about your employment, such as the name and address of your employer.
6. Financial Account Information: In some cases, you may be asked to provide details about your financial accounts, such as bank account numbers or PayPal information.
It's important to note that the specific information required may vary depending on the country, platform, or institution conducting the tax verification process.
Please note that the following information is generally accurate and verifiable (based on our knowledge, but not to be considered as legal advice). In most cases, different countries have their own specific tax forms that need to be filled out. If the business is based in the United States but you live overseas, there are specific tax documents available for you to complete. For instance, if you reside in New Zealand, you may not be required to pay Goods and Services Tax (GST) on your income or register as a business if your earnings are below a certain threshold.
3. Secure Communication Channels:
Utilize secure communication channels when sharing sensitive personal information. Choose encrypted email services or secure file transfer protocols to reduce the risk of unauthorized access or interception of your data.
A. IS THIS REALLY A THING?
Please refrain from sending PDF files over Discord, as it is not a secure method of communication. It is important to exercise caution regarding the privacy policies and data handling practices of the websites you create for. While email is not entirely secure, it is not uncommon to send legal documents via email, even through platforms like Gmail. However, in this day and age, it is crucial to remain vigilant against phishing attacks. Although the websites you sign up for may not be inherently malicious, it is still possible to encounter cross-site phishing attempts or become victim to large-scale DDOS attacks and data breaches.
4. Legality of Using Cryptocurrencies for Payment:
Consider the legality of using cryptocurrencies as a payment method for tax verification. Cryptocurrency regulations vary across jurisdictions, and some platforms may not accept or support cryptocurrency payments for tax purposes. Ensure compliance with applicable laws and regulations before considering cryptocurrency as a payment option.
A. C'mon I LOVE ME SOME BITCOIN!
It is important to be cautious and informed about the safety and regulation of the wallet systems you use. While we, personally, do not have trust in or prefer crypto, we acknowledge that other sites offer it as a payment option. Cryptocurrency is not inherently untrustworthy, but it is worth noting that not every country considers it completely legal due to the association with criminal activities involving decentralized currency. With the increasing government scrutiny and regulations surrounding the capabilities of artificial intelligence, it is advisable to prioritize safety and ensure that you are not inadvertently involved in any questionable activities, as crypto may sometimes be blamed for such incidents, regardless of your actual involvement.
5. Safety and Regulation of Payment Gateways:
Consider using popular payment gateways like PayPal, Payoneer, Stripe, or Tipalti for tax verification payments. These platforms are well-established, regulated, and have robust security measures in place to protect your personal and financial information. They often offer additional layers of buyer and seller protection, enhancing the safety of financial transactions.
A. What if those aren't allowed in my country?
Please understand that I am not suggesting that bank-to-bank transfers are the worst option, but rather emphasizing that the level of safety largely depends on the availability of safer alternatives. If your country allows for a payment gateway and the website you are working with is interested in connecting you to it for more secure earnings, it is advisable to pursue that option. While bank-to-bank transfers can be secure, they may not be as safe as they were in the past, such as in 2004 when checks and cashier's checks were more commonly used.
6. Cross-Border Payment Considerations:
If engaging with platforms based in different jurisdictions, consider the complexities of cross-border payments. Payment gateways like PayPal or Stripe can simplify cross-border transactions, ensuring compliance with international financial regulations and providing added security.
A. What other payment systems are there?
Please note not ALL of these work with ALL websites or requirements and the list MAY be out of date depending on your location or if any of these work.
1. Braintree: A PayPal-owned payment gateway that offers robust features and easy integration.
2. Square: Known for its point-of-sale solutions, Square also provides online payment processing for businesses.
3. Authorize : A widely used payment gateway that supports credit card and e-check transactions.
4. 2Checkout: Offers global payment processing with various payment options and fraud protection measures.
5. Skrill: Allows businesses to accept payments in multiple currencies and provides a range of payment options.
6. Payoneer: Primarily focused on international transactions, Payoneer enables businesses to send and receive payments globally.
7. Payza: Offers secure online payment processing and money transfer services.
8. BlueSnap: Provides a global payment gateway with support for multiple payment methods and currencies.
9. WePay: Offers an integrated payment solution for platforms and marketplaces, enabling seamless transactions.
10. Dwolla: Known for its ACH (Automated Clearing House) payment processing, Dwolla offers an alternative to traditional card-based payments.
11. Payline: Offers secure payment processing solutions for businesses of all sizes, including online, in-store, and mobile payments.
12. Skrill: Provides a digital wallet and payment gateway that supports online transactions and money transfers worldwide.
13. 3dcart: An e-commerce platform that includes built-in payment gateway integrations, making it easier to set up online stores.
14. Apple Pay: Allows customers to make payments securely using their Apple devices, such as iPhones, iPads, and Macs.
15. Google Pay: Offers a convenient and secure way for customers to make payments using their Google accounts on various platforms.
16. Amazon Pay: Enables customers to use their Amazon accounts to make payments on external websites.
17. AliPay: A popular payment gateway in China, AliPay allows businesses to accept payments from Chinese customers.
Please note that the availability and suitability of these payment gateway systems may vary depending on your location and business requirements. It's always recommended to research and compare different options to find the most suitable payment gateway for your specific needs.
7. Regularly Review Privacy Policies:
Stay informed about the privacy policies of the payment gateways you use for tax verification. Regularly review any updates to understand how your personal information is handled and protected by the platform.
I dunno? It varies from site to site, but it should at least be in clear enough english what practices they will do not to sell your data, and what services they have in place to save your butt from eternal hacker doom. (Hey i'm not translating ALL my text into GPT'ized speech GOTTA HAVE SOME HUMOR!)
8. Seek Professional Advice:
Consider consulting with a tax advisor or legal professional to ensure compliance with tax regulations and to gain insights into best practices for protecting personal privacy during tax verification processes. They can provide guidance on choosing secure payment gateways and navigating cross-border payment considerations.
A. Ok but I just wanna make art.
This is mainly an article for those trying to seek better ways of earning money, it's not as much of a problem. All ages and spaces and people and places are here making art, and not everyone feels the need to make money off it. Some of us do it because for us, it's now our freelance job, we're past the "EMPLOYABLE AGE" range - it's not that we can't find work because of our age but it's our age+ mental health issues that cause people to ignore us. So that's why freelancing with design and AI has been very good for us.
Maintaining personal privacy during tax verification is crucial for AI art model creators. By understanding tax verification requirements, sharing minimal necessary information, utilizing secure communication channels, and considering the legality of using cryptocurrencies for payment, creators can protect their personal information throughout the tax verification process. Additionally, using reputable payment gateways like PayPal, Payoneer, Stripe, or Tipalti enhances safety and regulatory compliance. Prioritizing personal privacy safeguards the confidentiality and security of AI art model creators' personal information.
Please note that this article is intended as a general guide and not as legal advice. Its purpose is to highlight important considerations for AI art model creators during tax verification processes. We have observed that some platforms may unintentionally overlook certain key points, but this is not a call-out or a recommendation against using any specific platform.
It's important to remember that tax verification is required by platforms like Twitch and Patreon, but the absence of verification on a platform does not necessarily imply illegality. If a platform conducts verification but does not provide all the necessary legal details, the information in this article may provide some guidance on where to seek additional clarification.
Please consult with a tax advisor or legal professional for personalized advice based on your specific circumstances.
ALSO A HUGE REMINDER:
THIS IS NOT LEGAL ADVICE, it's not fearmongering, it's not something that CivitAI or Earth & Dusk are responsible for - it's a GUIDE that we. constructed based on personal experience with websites and companies not just recently but even with Affiliate and Advertising sites that required tax details back in the 00's - your data is $$$ to people.