If you live outside of the USA, we will provide you a downloadable file of all the contributing transactions and totals for the tax year. This will be available to you starting Jan 1 of the following year. You can then submit this with your tax return in the usual manner.
One question that often comes up is "is withholding required?
Simply - the answer is no. Since XTRM is a third party settlement organization (TPSO), we sit between you and the sender. We provide a breakdown of all your transactions so that you can submit with your tax return, regardless of your location in the world.
What is a third party settlement organization (TPSO)?
A third party settlement organization is the central organization that has the contractual obligation to make payments to participating payeesin a third party payment network.
Characteristics of a third party payment network include:
- The existence of a central organization with whom a substantial number of providers of goods and services (who are unrelated to the central organization) have established accounts
- an agreement between the central organization and the providers to settle transactions between the providers and purchasers
- the establishment of standards and mechanisms for settling such transactions, and
- the guarantee of payment in settlement of such transactions.