Tbs 5 - Legally Permissible Acts Select from the option list provided whether each situation is legally permissible according to the IRS code or U.S. law. Each choice may be used once, more than once, or not at all. Situation Answer 1. Andy, who is not recognized by the Department of the Treasury to practice before the Internal Revenue Service, is employed by Laura, a CPA. One of Laura's clients has been notified that her income tax return has been selected for audit by the IRS. Andy had prepared the return and signed it as the preparer. Laura has a heavy workload and would like Andy to represent the client. Andy can represent the client with the client's written approval. 2. Michael Smith is a CPA with an office that employs four other CPAs. Kimberly Wilson is a CPA who was suspended from practice for 1 year by the Director of the Office of Professional Responsibility. Kimberly knows Michael and asks him for employment for the 1-year period of suspension. Michael employs Kimberly for the sole purpose of corresponding and communicating with the Internal Revenue Service on issues arising for Michael's clients. Michael is allowed to employ Kimberly because the suspension is for less than 2 years, Kimberly is limited to corresponding and communicating with the Internal Revenue Service, and the clients are really Michael's, not Kimberly's. 3. Stewart, CPA, owns his own firm and employs four CPAs and two enrolled agents. Stewart and another CPA worked on Becky's 1040 return. Becky's 1040 has been selected for audit next week. Stewart and all of his CPA employees are busy on an audit and do not have time to represent Becky at the audit. With Becky's consent, Stewart sends an enrolled agent to represent her at the audit. Choices: Acceptable. Unacceptable