Failure to furnish a correct TIN to a requester (payer) can result in a penalty for the payee of:

A) $0,it is the responsibility of the payer (requester) to have the correct information.
B) $25 for each failure to complete a W-9.
C) $50 for each failure to complete a W-9.
D) $500 maximum for failure to complete any W-9 forms as required.

If a payee fails to provide a correct TIN to a requester, they can be penalized $50 for each instance of failure to complete a W-9. Therefore, option C is the correct answer. The penalty can go up to $500 for maximum failure to complete any W-9 forms as required. Option A is incorrect because while the requester has the responsibility to obtain the correct TIN, the payee can still be penalized for not providing it. Option B is also incorrect because the penalty amount for failure to provide a correct TIN is $50, not $25.