Question

Mary, a CPA, prepared Gordon’s tax return for the current year. In preparing his return, she took a deduction that is contrary to the Code. She feels that he is entitled to this deduction because of her belief that possible confl icts exist between two sections of the Internal Revenue Code. Is Mary in conflict with the AICPA “Statements on Responsibilities in Tax Practice”?

Answer 1

Answer: YES, marry is in conflict.

Explanation: As being a certified public accountant it is responsibility of mary to correctly prepare the tax return for the client. However, she took a deduction that is contrary to the code hence she failed to do her work properly. Now, gordon would have to bear the additional tax in case of correction of the error in deduction made by his CPA.