Payors Are Required to Use Backup Withholding If

question 7

Multiple Choice

Payors are required to use backup withholding if:

• A)The taxpayer did not give the payor his or her taxpayer identification number.
• B)The taxpayer fails to certify that he or she is not subject to backup withholding.
• C)The IRS informs the payor that the taxpayer gave an incorrect identification number.
• D)The IRS informs the payor to start withholding because the taxpayer has not reported the income on his or her tax return.
• E)All of these will require the use of backup withholding

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Definitions:

Slope

The measure of the steepness or incline of a line, defined as the ratio of the vertical change to the horizontal change between two points on the line.

Percentage Point

A unit for the arithmetic difference between two percentages.

Horizontal Axis

The horizontal number line of a graph along which values of the x-variable are measured; also referred to as the x-axis.

Dependent Variable

The determined variable in a causal relationship.