Harmon is 30 years old. He is a new client who comes to you because he received a Form W-2. He earned $8,500. He has never filed a tax return because his wages have always been paid in cash. Which of the following most accurately states your responsibilities as a tax preparer?

A) You will have to contact the IRS about his failure to report income.

B) Because he was paid in cash, he does not have to report those wages because the IRS will never know about them.

C) If the IRS has not investigated him before, they will probably not do so now.

D) He should report his cash wages and file prior-year returns and explain the consequences for failure to do so.