Sian, an accountant, prepares a tax return for a client, Toy Sales Company. Vita, who is not an accountant, prepares a tax return for Wu's business, Xtra Delivery Service. Is an accountant who prepares a tax return for a client liable for any false statements in the return? Is a person who is not an accountant and who prepares a tax return for someone else liable for any false statements in the return?

What will be an ideal response?


Yes, in both cases. Aiding or assisting in the preparation of a false tax return and understating a client's tax liability are both crimes under the Internal Revenue Code. Liability does not depend on a person's professional or nonprofessional status.

Business

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Fill in the blank(s) with the appropriate word(s).

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