Jenny prepared Steve's income tax returns for no compensation for 2008 and 2009. Jenny is Steve's mother. In 2011, the IRS notifies Steve that it will audit his returns for 2007-2009. If Steve so desires, Jenny may represent him during the audit of all three returns.

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According to IRS rules, a person can represent someone in a tax audit if they prepared the tax returns for that person. In this scenario, Jenny prepared Steve's tax returns for 2008 and 2009 without any compensation, so she can represent him during the audit if he wishes.

Jenny Prepared Steve's Income Tax Returns for No Compensation for 2008