Question
As a paid return preparer, you must meet due diligence requirements when you prepare returns for self-employed taxpayers who claim certain credits. Which of the
As a paid return preparer, you must meet due diligence requirements when you prepare returns for self-employed taxpayers who claim certain credits. Which of the following Schedule C situations may warrant additional inquiries and documented responses in order to show that you are meeting the due diligence requirements?
Devan files a Schedule C. When you ask him questions, his information appears to be correct, consistent, and complete.
Gabriel files a Schedule C. He has two Forms 1099-NEC and expenses that would be expected for his profession.
Sally files a Schedule C. She reports only cash as income on the return and is claiming the maximum EITC.
Taio files a Schedule C. He has records for all of his income and expenses.
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Income Tax Fundamentals 2015
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven Gill
33rd Edition
9781305177772, 128543952X, 1305177770, 978-1285439525
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