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Question: Review the, "What would you do in this situation?" presented on page 15-25 of your text. Would you try this scheme for increasing your profits? If so, would you escape the scope of Sec. 7206?
What would you do in this situation?
After working eight years for a large CPA firm, you begin your practice as a sole practitioner CPA. Your practice is not as profitable as you had expected, and you consider how you might attract additional clients. One idea is to obtain for your clients larger refunds than they anticipate. Your reputation for knowing tax-saving tips might grow, and your profits might increase. You think further and decide that maybe you could claim itemized deductions for charitable contributions that actually were not made and for business expenses that actually were not paid. You are aware of Sec. 7206, regarding false and fraudulent statements but think that you can avoid the "as to any material matter" stipulation by keeping the deduction overstatements relatively insubstantial. Would you try this scheme for increasing your profits? if so, would you escape the scope of Sec. 7206? What ramifications might these deeds have on your standing as a CPA under the AICPA'sStatements on Standards for Tax Services and Code of Professional Conduct?
What is Sandwich Blitz more in need of in this situation: a manager or a leader. What is the difference between the two.
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