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:

Regular Product

A standard or common product offered by a company that is routinely manufactured or provided.

Direct Materials Purchases Budget

A detailed plan estimating the raw materials that must be purchased to fulfill the production budget and to meet inventory requirements.

Plastic

Synthetic or semi-synthetic organic compounds that are malleable and can be molded into solid objects of diverse shapes.

Budgeted Production

The estimated amount of goods or services that a company plans to produce over a specific time frame, according to its budget.