91. You are negotiating a transaction for your client, Shark Corporation. Parties on the other side of

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91. You are negotiating a transaction for your client, Shark Corporation. Parties on the other side of the deal ask you for information about the structural stability of a building, which is a significant part of the transaction. Coleman, Shark’s tax director, tells you to say “everything is OK,” when, in reality, the building has substantial hidden damage. Coleman tells you to say this because it would be more favorable to Shark’s position in the transaction.

a. How would you respond to Coleman’s request?

b. What if you have already told the other side that the building is OK when you learn about the problems?

c. What other potential 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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