In Reviewing Your Corporate Client's Tax Return for Last Year,you

question 4

Multiple Choice

In reviewing your corporate client's tax return for last year,you discovered that it overstated the beginning balance of its Patent account by $15 million.The client amortizes patents over a15-year period on a straight-line basis,so the company's pretax income was understated by $1 million last year.You informed your client over this error,and the client acknowledged that an error had been made.Nonetheless,your client insists that,for tax purposes,it intends to continue to amortize this patent balance in the same manner and for the same amounts as it did last year.You have a duty to:

• A) Inform the IRS about the client's refusal to make required corrections
• B) Not serve as the client's tax return preparer during the current year
• C) Not serve the client in any tax-related capacity, including as its tax preparer or tax adviser
• D) Continue to serve as the client's tax return preparer in accordance with your tax advocacy and confidentiality obligations

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Definitions:

Negotiation Skills

The abilities that allow individuals to reach agreements or compromises by discussion, aiming for mutually beneficial outcomes.

Sales Presentation

A sales presentation is a structured pitch where a product or service is explained and promoted to potential customers, aiming to secure a sale or agreement.

Office Networking Systems

Refers to the digital and technological infrastructure that supports communication and resource sharing within an office or organization.

New Customer

An individual or entity who has never previously purchased from or engaged with a business.