Mary Martinson is a CPA. One of her clients is suing her for common law negligence, alleging that she failed to follow federal tax law when preparing the current year's tax return. Which of the following statements is true?

A. Martinson is not bound by federal tax law unless she is a member of the AICPA.
B. Martinson's failure to follow federal law results in tort liability.
C. Martinson cannot incur tort liability if she has committed criminal tax fraud.
D. If Martinson failed to follow federal tax law, she would undoubtedly be found to have committed the tort of fraud.

Answer: B. Martinson's failure to follow federal law results in tort liability.

Business

You might also like to view...

What can managers do to curb the negative attributes of a hotels fleet of vehicles?

a. power vehicles with clean fuels such as natural gas b. purchase fuel- efficient vehicles c. implement measures to curtail the use of vehicles d. all of the above

Business

The clause in a mortgage which permits a subsequent mortgage to take priority is called the:

A. Acceleration clause. B. Subordination clause. C. Escalation clause. D. Alienation clause.

Business