CPA Liam discovers that last year's Form 1120 for his client PollCo claimed a $100,000 advertising deduction for a gift to candidates of the Green Party. AICPA tax ethics rules require that an amended return immediately be filed, as political expenditures are not deductible.

Question

Quizplus · Accepted Answer

AICPA tax ethics rules do not require an amended return to be filed immediately. Instead, they require the CPA to inform the client of the error and the potential consequences, allowing the client to decide whether to amend the return.

CPA Liam Discovers That Last Year's Form 1120 for His