Reference no: EM132787811

Problem 1: True or False- All Schedule Cs prepared in the office must be listed on the Schedule C Reconstruction Log.

a. True b. False

Problem 2: Which of the following are Schedule C Red Flags noted by the IRS?

a. Schedule C amounts are round numbers

b. Schedule C with little or no expenses where expenses would be expected

c. Schedule C with little or no records for income or expenses

d. All of the above

Problem 3: Before the Schedule C is completed, you should make sure?

a. There are enough documents to support business existence

b. You are confident the taxpayer operates a business

c. The supporting documents agree with the tax return

d. All of your questions have been answered and are documented

e. All of the above