Failure to Furnish a Correct TIN to a Requester (Payer)can

question 40

Multiple Choice

Failure to furnish a correct TIN to a requester (payer) can result in a penalty for the payee of:

• A)$0,it is the responsibility of the payer (requester)to have the correct information.
• B)$25 for each failure to complete a W-9.
• C)$50 for each failure to complete a W-9.
• D)$500 maximum for failure to complete any W-9 forms as required.

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Definitions:

Equity

A system of justice that developed in England separate from the common law courts. Few states in the United States still maintain separate equity courts, though most apply equity principles and procedures when remedies derived from the equity courts are sought. A broader meaning denotes fairness and justice. In business organization law, the capital contributions of owners plus profits that have not been distributed to the owners; stated capital plus capital surplus plus earned surplus.

Partnership Capital

The total resources or assets that partners contribute to a partnership for the purpose of starting or expanding the business.

Trade Name

A commercial name used by a company or business for trading purposes, under which it conducts business or offers services.

Sole Proprietor

An individual who owns and operates a business alone, without forming a corporation or partnership.