While reviewing a new client's prior-year tax returns, a CPA became aware that the client did not properly file all required federal income tax returns. Under Treasury Circular 230, what should the CPA do in this situation?
A. Notify the AICPA of the situation and request a ruling of continuance.
B. Notify the Internal Revenue Service of the client's noncompliance.
C. Resign from the engagement.
D. Advise the client of the consequences of the noncompliance.
Answer: D. Advise the client of the consequences of the noncompliance.
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The statement of retained earnings reports how the company's retained earnings balance changed from the beginning of the period to the end of the period
Indicate whether the statement is true or false
A U.S. shoe manufacturer is considering internationalizing to promote growth by diversifying its markets
Which of the following, if true, would most strongly support the claim that moving to France would help the company grow through market diversification? A) Doing business in France would likely expose the company to new ideas for product innovation. B) French women tend to purchase shoes more frequently than do French men. C) French consumers represent a sizeable market that could significantly boost the company's sales. D) Many of the company's U.S. customers have moved overseas to Europe.