Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You have been hired by LJ, LLC to prepare the tax return for the partnership. Lala and her brother, John, are 50-50% partners. Lala is
You have been hired by LJ, LLC to prepare the tax return for the partnership. Lala and her brother, John, are 50-50% partners. Lala is the managing partner who is responsible for all daily activities and financial decisions. John is a passive investor. You were hired by Lala and never met John. While preparing the tax return, you notice that Lala had paid over $10,000 of personal expenses through the partnership. What obligation or ethical responsibility do you as the tax preparer have to make sure John is aware of his sister's conduct? You should not disclose this information to John since it relates to the financial data not tax data and you were only hired to prepare the tax return You only need to communicate with Lala since she hired you You should make sure John is aware of the payments You have no obligation to tell John about the payments since you have never met him
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started