IRS INFORMATION RETURNS & BACKUP WITHOLDING Flashcards
When you sign an account card/form (a subsitute W-9) you are certifying to the IRS that your name and SSN match, that you’re not subject to backup withholding, and that you are a US person. True or False?
The IRS considers mistakes in SSNs, addresses, last names, and dollar amounts errors on information returns, which are subject to a penalty. True or False?
if you started backup witholding on a member’s acct because he failed to give you a SSN or a signed W-9, you can stop backup witholding on the account when you receive either a SSN or a signed w-9 from that member. True or False?
1099-INTs &1098s are sent to the IRS to ID all income and confirm the truthfulness of the member’s tax return. True or False?
IRS information returns (1099-INTs or 1098s) sent to members can include your CU’s newsletter or a loan promo. True or False?
The purpose of form 1099-C is to report forgiveness of a debt of more than $600, where the debt forgiven was a. due to an agreement between the CU and the member, b. per the CU’s decision to discontinue collection activity on the account, or c. recorded on teh CU’s records for business of investment purposes and was discharged in bankruptcy. True or False?
Once a member completes an IRS form w-8 ben (claiming foreign status and exemption from backup witholding), the w-8 ben form is good for 3 years or indefinitely?
a CU that is required to apply backup withholding must notify the member withing 15 days after withholding begins. True or False?
