When preparing a return involving a deduction for travel and entertainment expenses, the return preparer must make reasonable inquiries to determine that the taxpayer’s records are adequate to substantiate the deduction. a.True. b. False. Solution True The preparer should ask sufficient questions of clients claiming self-employment income to be satisfied that the client is actually conducting a business, the client has records to support income and expenses, or can reasonably reconstruct income and expenses records, and the client has included all income and related expenses on Schedule C, Profit or Loss from Business Taxpayers must have documentation of business purpose, as well as receipts to support expenses claimedfor travel and entertainement expenses. .