Which consequence may result from failing to provide the buyer of your home with your SSN?

When a seller fails to provide their Social Security Number (SSN) to the buyer of their home, it can lead to penalties administrated by the IRS. Specifically, the IRS imposes fines for failures associated with the reporting of certain transactions.

One of the primary requirements during the sale of property is the reporting of capital gains, which necessitates the seller's SSN for accurate tax reporting. If the seller does not provide their SSN, the IRS may impose a penalty of $50 for each instance of failure to provide the required information. This penalty is significant because it emphasizes compliance with tax reporting requirements designed to ensure all income is accurately tracked and reported.

The other options, while they could potentially reflect different situations associated with tax compliance, do not accurately capture the specific outcome related to failing to provide an SSN in this context. They address broader or different penalties that do not apply in this instance.