IRS Information Returns & Backup Withholding

Question 1

when you sign an account card or form (a substitute W9) you are certifying to the IRS that your name and SSN match that you are not subject to back up withholding and that you are a U.S. person

Answer 1

True

Question 2

The IRS considers mistakes in SSNs, addresses last names and dollar amounts errors on information returns, which are subject to a penalty.

Answer 2

True

Question 3

If you started backup withholding on a member‘s account because he failed to give you a SSN or a signed W9 you can stop backup withholding on the account when you receive either a SSN or a signed W9 form from that member

Answer 3

True

Question 4

1099 INTS and 1098s are sent to the IRS to ID all income, and confirm the truthfulness of the members tax return

Answer 4

True

Question 5

IRS information returns (1099 INTs or 1098s) sent to members can include your CU’s newsletter or a loan promo

Answer 5

False

Question 6

The purpose of form 1099C is to report forgiveness of a debt of more than $600 where the debt forgiven was
A. due to an agreement between the credit union and the member

B. per the credit unions decision to discontinue collection activity on the account or

C. recorded on the credit, unions records for business or investment purposes, and was discharged in bankruptcy

Answer 6

True

Question 7

Once a member completes an IRS form W8 BEN (claiming foreign status and exemption from backup withholding) the W8 BEN form is good for how long

Answer 7

Three years

Question 8

Credit union that is required to apply backup withholding must notify the member within 15 days after withholding begins

Answer 8

True