1. Only interviews reported on DD2- Due Diligence Interviews are acceptable. a) True b) False 2. If yes is selected on line 5 of the Fusion DD1 Income section and documents are checked in part A, those documents must be retained in the client file. a) True b) False 3. When reviewing the Schedule C only the interview is important. a) True b) False 4. One of the common errors observed is not combing multiple businesses and reporting on one Schedule C. a) True b) False 5. All offices must use the Tax Return Review Checklist when reviewing Schedule C’s prior to transmission. a) True b) False

1. **Only interviews reported on DD2- Due Diligence Interviews are acceptable.** b) False While the DD2 form may be a useful tool for documenting interviews, it is not the only acceptable method. Tax professionals can use various methods to document due diligence, as long as they meet IRS requirements. 2. **If yes is selected on line 5 of the Fusion DD1 Income section and documents are checked in part A, those documents must be retained in the client file.** a) True Retaining these documents is important for maintaining proper records and ensuring compliance with due diligence requirements. 3. **When reviewing the Schedule C only the interview is important.** b) False While the interview is important, a thorough review should also include examining documentation and ensuring accuracy and compliance with IRS requirements. 4. **One of the common errors observed is not combing multiple businesses and reporting on one Schedule C.** a) True Each distinct business activity should be reported on its own Schedule C. Combining them can lead to inaccuracies. 5. **All offices must use the Tax Return Review Checklist when reviewing Schedule C’s prior to transmission.** b) False While using a checklist is a best practice, it is not universally mandated unless specified by a particular firm or organization.

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