A friend of yours has approached you about preparing his tax return. You are in your senior year of college taking a taxation course, and everyone keeps asking you questions and wants advice on how to prepare their tax return and get the largest tax refund possible.
You have told them that you have only taken one course so far and are not a CPA. Can you prepare your friend’s tax return? Can you accept payment? In addition to the chapter content, see Statements on Standards for Tax Services at https://future.aicpa.org/resources/toolkit/statements-on-standards-for-tax-services, Circular 230 at www.irs.gov/tax-professionals/circular-230-tax-professionals, and Chapter 3, LO4, Tax Professional Responsibilities.