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Tax preparers have a duty of due diligence, meaning, they must do some amount of checking prior to putting numbers on a tax return and

  1. Tax preparers have a duty of due diligence, meaning, they must do some amount of checking prior to putting numbers on a tax return and then signing the return. Tax preparers are subject to audits by the IRS to verify due diligence. Assume you are a paid tax preparer and are presented with a sheet of paper from a client listing round dollar amounts. What questions might you ask the client about the business expenses listed on the sheet (rent, supplies, mileage, travel). Would you feel comfortable signing the return with no further receipts or verification? Please explain why or why not, and the questions you would ask the clinet.

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