Eddie's new client, Felicity, has a meal delivery service. Upon reviewing Felicity's prior-year returns, Eddie realizes that Felicity incorrectly deducted the cost of parking tickets for illegally parked delivery vans for the last two years. The ethical standards or Circular 230, Subpart B require Eddie to: Notify the IRS of the error on prior-year returns. Insist that Felicity amend her prior-year returns, and refuse to assist her with any other tax preparation unless she agrees. Reduce her current-year business expenses by the amount of the incorrect prior-year deductions. Explain to Felicity that the deduction is disallowed and could lead to penalties, and encourage her to amend her prior-year returns