Ali has a small construction company. During the year, he paid Will for various subcontracting jobs. It was not until December, when he was reviewing his year with his accountant, that it was brought to his attention that he must receive a W-9 from Will denoting the federal identification (either FEIN or Social Security number) so that Ali can report the subcontracting expenses as required by law. From January to the end of November, Ali had paid Will for most of his work; the checks paid totaled $10,200. For December, Will was expecting payment of an additional $ 5,500. Ali asked Will for the W9 the day after he met with his accountant (3 of December), and it is now the end of the month. Will is refusing to submit the W-9. What should Ali do? a) Ali should pay Will the $5,500. b) Ali should pay Will nothing because he is refusing to submit the W-9. c) Ali should pay Will $1,732. d) Ali should pay Will $1,732 and find a new contractor for his business..

1. Ali has a small construction company. During the year, he paid Will for various subcontracting
jobs. It was not until December, when he was reviewing his year with his accountant, that it was
brought to his attention that he must receive a W-9 from Will denoting the federal identification
(either FEIN or Social Security number) so that Ali can report the subcontracting expenses as
required by law. From January to the end of November, Ali had paid Will for most of his work;
the checks paid totaled $10,200. For December, Will was expecting payment of an additional $
5,500. Ali asked Will for the W9 the day after he met with his accountant (3 of December), and it
is now the end of the month. Will is refusing to submit the W-9. What should Ali do?
a) Ali should pay Will the $5,500.
b) Ali should pay Will nothing because he is refusing to submit the W-9.
c) Ali should pay Will $1,732.
d) Ali should pay Will $1,732 and find a new contractor for his business.