Homework SourseCan A new client hires the tax professional to do taxes The
Can A new client hires the tax professional to do taxes. The preparer discovers an error in a prior year return or filling. The preparer must not inform the client of the error and the consequences of the error
Can A new client hires the tax professional to do taxes. The preparer discovers an error in a prior year return or filling. The preparer must not inform the client of the error and the consequences of the error
Solution
Answer :- Statement on Standards for Tax Services (SSTS) No. 6 and Circular 230 (Section 10.21) requires that a tax professional must inform the client about error in tax return filed previously. Further, Tax professional must also tell the client about potential consequences of error in return and then suggest corrective measures to the client immediately.
