Lawson, a CPA, discovers material noncompliance with a specific Internal Revenue Code (IRC) requirement in the prior-year return of a new client. Which of the following actions should Lawson take?
A. Wait for the statute of limitations to expire.
B. Discuss the requirements of the IRC with the client and recommend that the client amend the return.
C. Contact the IRS and discuss courses of action.
D. Contact the prior CPA and discuss the client's exposure.
Answer: B. Discuss the requirements of the IRC with the client and recommend that the client amend the return.
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