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Review the following scenario, then choose the appropriate response describing steps a paid tax preparer must take to demonstrate due diligence. Charlie (21) comes in

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Review the following scenario, then choose the appropriate response describing steps a paid tax preparer must take to demonstrate due diligence. Charlie (21) comes in to your ofce to have his tax return prepared. He states tha is a full-time college student with income from a part-time job, and his parents will not claim him as a dependent. He wants to claim the American Opportunity Tax Credit (AOTC). Which of the following describes an appropriate question to ask or action to take? ' ' Ask him if he has ever been convicted of a misdemeanor offense or had his drivers license revoked. ' ' Inform him that he may be assessed a penalty of $540 if he fails to provide all the information required. ' ' Inform him he must provide copies of all transcripts before you can prepare his return. Request a copy of his Form 1098-T, Tuition Statement, and inquire into when and how his educational and other living expenses were paid

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