Question

Coretta would like to have her tax return prepared by a professional. She has one Form W-2, Wage and Tax Statement. Her preparer notices that she filed a Schedule C (Form 1040) the previous year for a consulting business. Coretta states that her income and expenses are exactly the same as last year, but she says nothing about operating a business. Nor does she offer any information relating to business income or expenses. Which of the following is an appropriate action for a tax preparer to take?

Answer 1

Answer: If a taxpayer declines to disclose information regarding their business revenue and costs, a tax expert should decline to file a return for the taxpayer.

Step-by-step explanation: