Betty hires Sam, a C.P.A., to prepare her current federal income tax return. In preparing the return, Sam discovers that he made an error in the preparation of Betty's return for the previous year. Sam should:
I.Immediately contact the IRS.
II.Tell Betty that they should wait and see if the IRS catches the error.

Question

Betty hires Sam, a C.P.A., to prepare her current federal income tax return. In preparing the return, Sam discovers that he made an error in the preparation of Betty's return for the previous year. Sam should:
I.Immediately contact the IRS.
II.Tell Betty that they should wait and see if the IRS catches the error.
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Quizplus · Accepted Answer

Sam should inform Betty of the error and advise her on the steps to correct it, which may include filing an amended return. Contacting the IRS directly without discussing with Betty or suggesting to wait and see are not appropriate actions.

Betty Hires Sam, a C