Reference no: EM132839592

Problem 1: Bijou, a member, is preparing a personal tax return for Paloma. There are a number of positions being taken on the return that would be considered controversial matters. Bijou has been preparing returns for Paloma for the past four years and there have been no audits on any of the returns prepared by Bijou. None of the prior returns contained positions that are considered controversial matters. Paloma is single with three dependent children and she pays alimony to her former husband. Who has the final responsibility for positions taken with respect to the controversial matters on the tax return?

A) Bijou only
B) Paloma only
C) Both Paloma and Bijou
D) Only Paloma if Bijou does not sign the return.