When a taxpayer comes in hoping to defraud the government by electronically filing a false return, you as a tax prepare Do nothing. The taxpayer is protected by IRS privacy rules which forbid the tax preparer from telling anyone else about the re Contact your supervisor Call the IRS as soon as possible. Confront the taxpayer and, in no uncertain terms, accuse them of fraud. Mark for follow up Question 14 of 22. As part of a good Schedule C interview, you as the tax preparer, should: Explain to the taxpayer that an accurate Schedule C reports all income and expenses associated with the business. Accept the taxpayer's statement of expenses with no questions asked. Ignore items that might reduce the taxpayer's refund. Provide amounts for expenses typical in the region where the return is being prepared. Mark for follow up Back Save / Return Later Summary Next >>