Amara agrees to prepare the tax return with the information

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Question: Amara is preparing a return for Vito who owns a construction and home improvement business. Vito's income and expense records are incomplete and questionable. Vito insists that his records are accurate and that he has reported all income. Amara has found evidence that Vito is not reporting his cash transactions and is including expenses for renovations done to his personal home. Which of the following actions would be deemed as an intentional disregard of rules?

a) Amara refuses to prepare the tax return and asks Vito to leave. She advises Vito to gather the correct income and expense information before attempting to have the return prepared. She also informs him of the risks of having the return prepared using the current records.

b) Amara demands to see Vito's bank statements and invoices from vendors related to his expenses.

c) Amara shares her concerns and findings with Vito and informs him that she intends to file an extension to allow time to gather all records to prepare an accurate tax return. She insists on reviewing bank records, vendor accounts, and invoices before she prepares the tax return.

d) Amara agrees to prepare the tax return with the information Vito has provided.

Reference no: EM133415862

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