Question

Tax return preparers may generally rely on a client's representations without verification unless:

A.) the information seems incorrect, inconsistent, or incomplete.
B.) the client is new to the preparer.
C.) the client is incompetent.D.) the tax matter is complex.

Answer 1

Tax return preparers may generally rely on a client's representations without verification unless the information seems incorrect, inconsistent, or incomplete, Option A.

Step-by-step explanation:

A "tax return preparer" usually relies in good faith without verification upon information furnished by a taxpayer or another advisor or third party. But he has the authority to make inquires in case he feels the information given is incomplete or inconsistent. Also, some of the provisions also require few circumstances or facts to be claimed before deduction is made. So, A tax return preparer should make relevant inquiries to decide if the information given is correct as required by an "Internal Revenue Code" section or a regulation to claim either a deduction or a credit.