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FriendorFoeTE.qxd:FriendorFoeTE.qxd09/18/084:34 PMPage 1TEACHER RESOURCE GUIDECHOICESFriend or Foe? Eleanor RobinsS CHOICE DU CA TID N E i FR oR FO e ?Learning Activities for VocabularyBL IS ON AL
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Gather necessary information about your contacts.
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Friend or Foe is a form used to collect information about transactions and relationships with certain payees, primarily to determine if they are considered independent contractors or employees.
Businesses and organizations that engage in financial transactions with independent contractors or payees, particularly for tax reporting purposes, are required to file Friend or Foe.
To fill out Friend or Foe, one must provide information such as the payee's name, tax identification number, the nature of the relationship, and the amount paid. Instructions are typically provided by the tax authority or organization.
The purpose of Friend or Foe is to help tax authorities distinguish between employees and independent contractors for correct taxation and compliance, ensuring proper reporting and withholding.
The information that must be reported includes the payee's name, taxpayer identification number, relationship type, payment amount, and any relevant documentation regarding the nature of the work performed.
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