ABA CRCM Practice Test - Questions Answers, Page 32

By which date must an interest reporting statement be sent to the borrower's last known address?

On foreclosure, which of the following loans is subject to the reporting requirements for foreclosed and abandoned property?

First National Bank has foreclosed on several loans. One of the loans is not subject to the requirement to submit an information return on the foreclosed property. Which loan is most likely NOT covered by the regulations?

First National Bank made a loan to Lawrence & Co. for the purpose of purchasing landscape equipment, secured by a storage lot the company owneD. The borrower made payments for a year and then defaulteD. Three months passed without any communication or payments from the borrower, despite the bank's efforts to locate the company's owners. The company appears to have ceased operations. What is the bank's BEST course of action?

Which of the following pieces of information is the bank NOT required to report on Form 1099 for foreclosed and abandoned property?

By what date must the bank send the borrower a statement in connection with an information return on foreclosed or abandoned property?

Which account is NOT subject to backup withholding?

Walter Johnson has two accounts at First National Bank. His savings account was opened in 1975, and his money market savings account was opened in 1985.He has never supplied a TIN number to the bank. What must First National Bank do?

On March 1, First National Bank opened three accounts:

1) a savings account for Margaret Nelson, who did not have a TIN but signed a certification that she had applied for one;

2) a money market savings account for Linda Miller, who could not remember her TIN but promised to provide it at the earliest possible date; and

3) a certificate of deposit for John Whiteside, who completed a Form W-9 but provided a TIN with only eight numbers. Ms. Nelson provided her newly acquired TIN to the bank on April 15, Ms. Miller provided her TIN on April 5, and Mr. Whiteside provided his TIN to the bank on March 10. Interest was paid on all of these accounts on March 31, and the bank withheld 28 percent of the interest payments. On April 20 all the payees requested that the withheld interest be refunded. What should the bank do?