Tony's tax instructor emphasizes the importance of keeping confidential any information used

to prepare clients' returns. Which of the following would not be considered a violation of the

disclosure laws?

a) Leaving client files in view of another client

b) Asking a fellow associate to assist with the preparation of a return

c) Telling your spouse that you prepared his boss's tax return

d) Reviewing your client database to determine which clients you will contact to offer financial

services

Walter, a paid tax preparer, prepared a return for the Jacksons. He has received a notice from

the IRS requesting information about Mr. Jackson. What action must Walter take?

a) Notify the client immediately and let the client handle the request.

b) Respond to the Internal Revenue Service without unnecessary delay.

c) Protect his client and refuse to cooperate.

d) Notify the client immediately and respond to the IRS if the client grants him permission.

While reviewing a new client's prior-year return, Walter notices the preparer omitted a W-2 from

wages reported on the return. Which of the following is the most accurate statement?

a) Walter should notify the Internal Revenue Service, prepare Form 1040X, and mail it to the

IRS for the client.

b) Walter should ignore the omission and wait for the Internal Revenue Service to find it.

c) Walter should notify the client, complete Form 1040X, have the client mail the return as

soon as possible, and inform the client to pay any balance due as soon as possible.

d) Walter should include the omission on this year's return.