Your tax client, Steve Michaels, told you that his former accountant who prepared his annual tax returns made errors that resulted in him suffering more than $$100,000$ in losses. Apparently, the errors involved adjustments to his income for a loss resulting from his sale of a property that had greatly diminished in value. Michaels alleged that the former accountant incorrectly advised him that his income was too high to deduct the loss on the property. You confirmed that Michaels overpaid his taxes to the IRS and he did not receive a tax refund that otherwise would have been received.

$1.$ Did the former accountant violate any of the rules of conduct in the AICPA Code of Professional Conduct? Be specific.

$2.$ Describe the legal standards of negligence and recklessness. Explain whether the former accountant violated one and or the other standard.