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

Question

Quizplus · Accepted Answer

If a payee fails to provide a correct TIN to a requester, they can be penalized $50 for each instance of failure to complete a W-9. Therefore, option C is the correct answer. The penalty can go up to $500 for maximum failure to complete any W-9 forms as required. Option A is incorrect because while the requester has the responsibility to obtain the correct TIN, the payee can still be penalized for not providing it. Option B is also incorrect because the penalty amount for failure to provide a correct TIN is $50, not $25.

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