Jenny prepared Steve's income tax returns for no compensation for 2005 and 2006.Jenny is Steve's daughter.In 2008,the IRS notifies Steve that it will audit his returns for 2004-2006.If Steve so desires,Jenny may represent him during the audit of all three returns.

Question

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According to the rules of the IRS, family members and friends can represent taxpayers in front of the IRS as long as they are not compensated for their services. Therefore, Steve can choose to have Jenny represent him during the audit of all three returns.

Jenny Prepared Steve's Income Tax Returns for No Compensation for 2005