You are the managing partner for Doo Wright, CPAs, a regional CPA firm in Pomona, California which desires to expand its market share in Southern California.

The firm has recently hired Slick Rick, Esq., CPA & E.A., who is a progressively minded professional. Slick was responsible for HR Blocks highly successful advertising program called Its Refund Season. This program relied heavily on enticing taxpayers with big bold TV ads and cash prizes to become tax clients. IRS has previously suspended Rick from practice before IRS due to a variety of issues. This action impacted Ricks E.A. license.

Slick is implementing an aggressive marketing program for your firm this tax season called Name Your Refund which will also rely on attracting new tax clients with outrageous TV ads on local cable stations & attractive cash prizes. The proposed ads make extraordinary promises for success with IRS.

Ads ask taxpayers to go to the firms new website called Avoiding Taxes The Wright Way.com which coaches potential clients under the Name Your Refund tab about the numbers they will need to generate a tax refund. Another tab No 1099 = No income discusses documentation to bring to the initial meeting.

The firm will rely upon statements by clients in preparing tax returns and will not aggressively pursue back-up information from clients because it might be too time consuming for the clients.

Keep it simple but organized! Good discussion will reference the appropriate Circular 230 sections, AICPA Rules & Tax Case(s) discussed in class presentations. Issues to discuss:

1. Discuss Ricks overall behavior and his progressive approach to obtaining new clients for the firm does any case stand out in your mind?

2. What potential issues could be raised by Ricks association with your firm?