A client retains you to prepare their 2020 income tax return. The client provides you with a copy of their 2017, 2018, and 2019 tax returns. The returns were all self-prepared. In reviewing the prior year returns you notice an unusual credit. The client explains that he erroneously included it in his 2017. He deliberately continued the practice in subsequent years. You must:

1. a) Report the clients error to the IRS for all years for which the statutes of limitations is opened.

2. b) Report the clients error to the IRS for years 2018 & 2019; the years in which the inclusion was deliberate.

3. c) Advise the client of its error and the consequences of such noncompliance.

4. d) Immediately resign from the 2020 engagement.

5. e) None of the above.