Skills Warm Up: Schedule C Situations that Raise a "Red Flag"

Question 1 of 1

Which one of these items would raise a red flag when preparing a tax return with Schedule C?

Schedule C cash businesses as the only source of income on a return claiming EIC

Schedule C with little or no expenses when expenses would be expected

Schedule C taxpayers with little or no records for income and expenses

Any Schedule C income that qualifies the taxpayer for the maximum EIC

Schedule C without a Form 1099

All of the above