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On a Federal income tax return filed five years ago, Andy inadvertently omitted

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On a Federal income tax return filed five years ago, Andy inadvertently omitted a large amount of gross income.

a. Andy seeks your advice as to whether the IRS is barred from assessing additional income tax in the event he is audited. What is your advice?

b. Would your advice differ if you were the person who prepared the return in question? Explain.

c. Suppose Andy asks you to prepare his current year’s return. Would you do so? Explain.

Solution:

 
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