A Client Filed Its Tax Return Last Year Using the Services

question 20

Multiple Choice

A client filed its tax return last year using the services of Teri Yakim,an Enrolled Agent.For the current year,this client has retained you to serve as her tax return preparer.You have noted that last year's tax return contained a material error.You have a duty to:

• A) Inform your client only
• B) Inform your client and Teri Yakim only
• C) Inform the IRS and your client, but not file a corrected return without your client's permission
• D) Inform your client, and submit a corrected return to the IRS even if your client does not give you permission to do so

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Definitions:

Celler-Kefauver Act

A U.S. law passed in 1950 to amend the Clayton Act, aimed at preventing anticompetitive mergers and acquisitions by closing loopholes regarding asset purchases.

Interlocking Directorates

The practice of having the same individuals serve on the boards of directors of multiple companies, potentially influencing competitive practices.

Sherman Act

A landmark federal statute in the field of United States antitrust law passed in 1890 to preserve free and unfettered competition as the rule of trade.

U.S. Justice Department

The federal executive department responsible for enforcing the laws of the United States and administering justice.