Ethical Dilemma. When Larry filed his taxes he forgot to include $2,500 in cash income he earned painting a friend's house. He was going through his checking account records and noticed the cash deposit and realized his mistake. a. Should Larry ignore his mistake or file an amended return? Why or why not? b. What are possible consequences of Larry ignoring the error? a. Should Larry ignore his mistake or file an amended return? Why or why not? (Select the best answer below.) O A. Larry should amend his return and pay the legal amount owed. If he does not file an amended return, he will owe the money next year. O B. Larry should amend his return and pay the legal amount owed. If he does not file an amended return he is committing tax fraud. O C. Larry can ignore his mistake. Since it was an honest mistake, an amended return is not necessary. OD. Larry can ignore his mistake. If he does not file an amended return, there is no penalty, so he should not waste his time. b. What are possible consequences of Larry ignoring the error? (Select the best answer below.) O A. If Larry's oversight is discovered by the IRS, he will need to send a written apology letter to the IRS. O B. If Larry's oversight is discovered by the IRS, he will pay the tax owed plus penalties. OC. If Larry's oversight is discovered by the IRS, he will pay the tax owed. OD. If Larry's oversight is discovered by the IRS, he will pay the tax owed and send a written apology letter to the IRS