By Completing Form W-4P, a Person Can Elect to Have

question 52

True/False

By completing Form W-4P, a person can elect to have no income tax withheld from the annuity amounts the person receives.

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Definitions:

Dissolved

The process of legally disbanding a corporation or partnership, effectively ending its existence.

Corporation

A legal entity that is separate from its owners, providing limited liability to its shareholders and capable of owning property, entering contracts, and being sued.

Preferred Shareholders

Holders of preferred shares who may have a right to vote arising if dividends are not paid.

Dividends

Payments made by a corporation to its shareholders from profits, usually on a regular basis.