Arnie is a Certified Public Accountant who prepares income tax returns for his clients. One of his clients submitted a list of expenses to be claimed on Schedule C of the tax return. Arnie qualifies as a return preparer and, as such, is required to comply with which one of the following conditions?
A. Arnie is required to independently verify the client's information.
B. Arnie can ignore implications of information known by him.
C. Inquiry is not required if the information appears to be incorrect or incomplete.
D. Appropriate inquiries are required to determine whether the client has substantiation for travel and entertainment expenses.
Answer: D. Appropriate inquiries are required to determine whether the client has substantiation for travel and entertainment expenses.
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