Vendor Tax Files
Which form does a U.S. person generally provide to a payer to certify their taxpayer identification information?
A. Form W-2
B. Form W-8BEN
C. Form W-9
D. Form 1042-S
C. Form W-9
If a seller does not collect sales tax on a taxable purchase, what tax may the purchaser be responsible for?
A. Use tax
B. Income tax
C. Property tax
D. Payroll tax
A. Use tax
Which U.S. Treasury office administers and enforces economic and trade sanctions?
A. IRS
B. SEC
C. OFAC
D. FBI
C. OFAC
What does VAT stand for?
A. Vendor Assessment Tax
B. Value-Added Tax
C. Variable Accounting Tax
D. Verified Acquisition Tax
B. Value-Added Tax
When property remains unclaimed for a legally specified period, it may eventually need to be turned over to:
A. The appropriate state
B. The vendor's bank
C. The IRS in all cases
D. The company's auditors
A. The appropriate state
What does TIN stand for?
A. Tax Identification Notice
B. Taxpayer Identification Number
C. Taxable Income Number
D. Treasury Identification Number
B. Taxpayer Identification Number
Which document generally allows an organization to purchase qualifying items without paying sales tax?
A. W-9
B. Exemption certificate
C. B Notice
D. 1099-NEC
B. Exemption certificate
What should organizations do with vendors or other parties before conducting certain transactions to help comply with sanctions requirements?
A. Screen them against applicable blocked/denied-party lists
B. Request a second invoice
C. Issue a 1099
D. Perform a sales-tax audit
A. Screen them against applicable blocked/denied-party lists
GST stands for:
A. General Sales Tariff
B. Goods and Services Tax
C. Government Sales Tax
D. Gross Services Tariff
B. Goods and Services Tax
The period during which property remains inactive before it becomes reportable as unclaimed property is generally called the:
A. Settlement period
B. Dormancy period
C. Audit period
D. Holding cycle
Which form is generally used to report nonemployee compensation?
A. 1099-NEC
B. 1099-MISC
C. W-9
D. W-2
A. 1099-NEC
For sales-tax purposes, "nexus" generally refers to:
A. A company's fiscal year-end
B. A sufficient connection between a business and a taxing jurisdiction
C. The amount of tax withheld from a vendor
D. A vendor's federal tax classification
B. A sufficient connection between a business and a taxing jurisdiction
Which law is associated with protecting certain health information?
A. FATCA
B. HIPAA
C. FCPA
D. SSUTP
B. HIPAA
Which IRS form is associated with reporting U.S.-source income paid to foreign persons?
A. W-9
B. 1099-NEC
C. 1042-S
D. W-2
C. Form 1042-S
Before reporting certain property as unclaimed, a company may be required to attempt to contact the owner. This process is called:
A. Due diligence
B. Nexus testing
C. TIN matching
D. Backup withholding
A. Due diligence
A company receives an IRS notice stating that a payee's name and TIN combination does not match IRS records. What is this commonly called?
A. C Notice
B. B Notice
C. FATCA Notice
D. Backup Notice
B. B Notice
Your company purchases a taxable item, but the vendor doesn't charge the required sales tax. What should AP generally NOT assume?
A. The transaction may need review
B. Use tax may be due
C. No tax is owed simply because the vendor didn't charge it
D. The vendor's invoice automatically determines the company's tax obligation
D. The vendor's invoice automatically determines the company's tax obligation
Which law is aimed at combating bribery of foreign officials by certain companies and individuals?
A. GLBA
B. HIPAA
C. FCPA
D. FATCA
C. FCPA
A foreign vendor provides documentation establishing its foreign status. Which family of IRS forms would AP most likely encounter?
A. W-8 series
B. W-2 series
C. 1099 series
D. 941 series
A. W-8 series
AP discovers an old outstanding vendor check. Which is the BEST first step?
A. Immediately recognize it as company income
B. Delete the vendor from the system
C. Research the payment and determine whether the money is still owed
D. Automatically issue a new check without investigation
C. Research the payment and determine whether the money is still owed
This IRS program allows payers to check whether a payee's name and TIN combination matches IRS records before filing information returns.
What is the IRS TIN Matching Program?
This type of permit may allow a purchaser to buy without paying sales tax to the vendor and instead calculate and remit the applicable tax itself.
What is a direct-pay permit?
OFAC publishes this list containing individuals and companies whose assets are blocked and with whom U.S. persons generally are prohibited from dealing.
What is the Specially Designated Nationals and Blocked Persons (SDN) List?
This U.S. law targets offshore tax evasion and imposes reporting/withholding requirements involving certain foreign financial accounts and entities.
What is FATCA — the Foreign Account Tax Compliance Act?
This term describes the process by which abandoned or unclaimed property is transferred to the state.
What is escheatment?