88. You are a CPA in practice and have a long-term client who is involved in a

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88. You are a CPA in practice and have a long-term client who is involved in a nasty divorce proceeding with her husband. The client has assets she deposited in a bank account in the Grand Cayman Islands. There is U.S.-taxable interest on the deposits. Because she does not want her husband to know about the deposits, she asks you to report the interest on her tax return in such a way that it will not “tip off” her husband to the existence of the account. You can handle this request by reporting the interest through Schedule C (instead of Schedule B) on her tax return and thus avoid making the source of the income known.
What potential nonregulatory ethics issues do you see in this situation?

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Federal Tax Research

ISBN: 9780324659658

8th Edition

Authors: William A. Raabe, Gerald E. Whittenburg, Debra L. Sanders

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