0x71558ae2…779csent to0xcf2f348c…b49a·#22,989,711·view on Etherscan
Because the incentive rewards are being allocated to a collective rather than an individual or tax-reporting entity, the DAO will be required to withhold and remit taxes on the total amount of incentives Nouncil claims unless a proper taxpayer is identified. To avoid unnecessary tax burden on the DAO, one of the following must occur:
- A single individual claims the funds and agrees to complete KYC and pay the associated taxes, or
- A legitimate legal entity is established to receive the funds and assume tax responsibility.
If no tax-reporting recipient is identified in time, the DAO will be responsible for withholding ~24% of the fair market value as backup withholding.