1. You are an accountant and the IRS audits a client of yours. The Revenue Agent contacts you after she has spent some time investigating the taxpayer's records. She says that there are certain items that she has not been able to locate and she wishes to review your workpapers, retained copies of returns, and files.

(A) Do you grant her request?

(B) Assume that the Revenue Agent sent you a letter stating that under Code Sec. 7602 she has the right to request, review, and copy the records and that she is formally requesting them. Do you comply with her request at this point?

(C) If you turn the records over under either of these circumstances, do you expose yourself to any potential liability to your client?