Reference no: EM132787805

Problem 1: What is the most common reason the IRS assesses penalties to preparers during an audit?

Choose one answer.

a. Failure to obtain full documentation of Schedule C income

b. Failure to obtain full documentation of both Schedule C income and Schedule C expense

c. Failure to adequately question the client and document the responses

d. Failure to prove business existence

Problem 2: True or False- Documents that are listed on Form 8867, number 5, are required to be on file.

a. True b. False

Problem 3: True or False- Documents that a taxpayer says they CAN provide should be listed on Form 8867, number 5.

a. True b. False