Jenna, a paid preparer, is preparing a return for her neighbor and close friend, Gerald. Gerald wishes to claim the head of household filing status using his daughter, Sara, as a dependent. Jenna knows that Sara lived with Gerald's ex-wife (Sara's mother) all year. However, when she asked him about this, Gerald replied: "Oh, I understand that you have to ask that. Sara lived with me all year." Then he gave Jenna a knowing wink.

Jenna should choose which statement:

Document her question and Gerald's answer and prepare the return claiming the filing status.

Call Gerald's wife and verify that she will not file a return using the head of household status.

Decline to prepare Gerald's return with the requested filing status.

She may not ignore her personal knowledge, no matter what Gerald says.

Obtain a signed statement from Gerald that he agrees to assume the risk of any consequences of the tax position claimed on the return.