Faye,a CPA,is preparing Judith's tax return.One item on the return requires a Yes or No answer.Faye can avoid checking either box if the effect is to increase Judith's tax liability.

Question

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Faye, as a CPA, has a professional and ethical responsibility to accurately and appropriately prepare her client's tax return. If she knows that checking either box would increase Judith's tax liability, she must still select the correct answer. Avoiding checking the box would be considered fraudulent behavior and could result in penalties for both Faye and Judith.

Faye,a CPA,is Preparing Judith's Tax Return