Tax Information Policy for Distribution of Sync License Funds

Effective Date: 11/8/2024
Requesting Company: Owl Eye Records (OER)
Applicable to: U.S. and Non-U.S. Musicians and Composers

To ensure compliance with U.S. tax regulations and facilitate accurate distribution of sync license payments, all musicians and composers receiving funds from Owl Eye Records (OER) for sync licenses are required to provide necessary tax information. This process ensures compliance with tax obligations and helps avoid payment delays.

1. Purpose

This policy outlines the tax information requirements for musicians and composers, both U.S.-based and international, to receive funds distributed by OER for sync licensing. The goals are to:

• Maintain compliance with U.S. Internal Revenue Service (IRS) regulations.
• Ensure timely processing and distribution of funds.
• Fulfill tax reporting obligations for both U.S. and Non-U.S. recipients.

2. Scope

This policy applies to all musicians, composers, and rights holders receiving sync license revenue through OER, regardless of residency or citizenship status.

3. Required Tax Documentation

The following documentation is required based on the tax residency status of the individual or entity:

• For U.S. Musicians and Composers (U.S. Citizens and Residents):
  • IRS Form W-9: U.S. citizens, residents, and entities must complete and submit a W-9 form to certify their taxpayer identification number (TIN).
  • Backup Withholding: If required by the IRS, backup withholding will apply to payments.
• For Non-U.S. Musicians and Composers (Foreign Persons/Entities):
  • IRS Form W-8BEN (for Individuals) or W-8BEN-E (for Entities): Non-U.S. persons and entities must submit the appropriate W-8 form to certify their foreign status and claim any tax treaty benefits.
  • Tax Treaty Benefits: Where applicable, tax treaties may reduce or eliminate U.S. withholding tax on certain payments. Eligible Non-U.S. persons should claim treaty benefits on the W-8 form.
  • 30% Withholding Tax: If no tax treaty or valid W-8 form is provided, a 30% withholding tax will apply to all U.S.-source royalty payments to Non-U.S. persons.

4. Submission and Processing of Tax Forms

• Submission Process: All tax forms must be submitted digitally via [Insert secure submission method or portal].
• Verification and Processing: OER will verify the forms for completeness. Payments may be delayed if forms are incomplete or additional information is required.

5. Data Security and Confidentiality

• OER treats all tax information in compliance with applicable data protection laws.
• All tax data will be handled and stored securely, with access limited to authorized personnel only.

6. Data Retention and Disposal

• OER will retain tax forms only for as long as required for legal and compliance purposes.
• After this period, tax information will be securely disposed of according to established data retention policies.

7. Updates and Compliance

• Recipients are responsible for promptly notifying OER of any changes to their tax status or information.
• Failure to provide accurate and up-to-date tax information may result in withholding of funds until compliance is met.

8. Contact Information

For questions regarding tax information requirements, please contact OER at legal [at] owleyerecords.com.