Ethical Issues In Tax Planning Engagements Practice Test

Withdraw from the engagement without any explanation to the client.

Continue preparing returns as instructed since the client is responsible for the accuracy of the information provided.

Immediately report the deductions to the IRS to avoid complicity in the fraud.

Advise the client of the errors, recommend corrective action (amending returns), and decline to continue the improper deductions going forward - but may not notify the IRS without the client's consent.