**Tax Filing Guidance: Addressing Prior-Year Omissions***Scenario:*While preparing a 2021 tax return for a taxpayer named Tyreek, a paid tax preparer discovered that certain items of income were omitted in the prior-year tax return. The preparer should promptly inform the taxpayer of this omission and:1. **Advise them of the consequences** of not amending the previous year's return. 2. **Make an adjustment for the previous year's omission** on the current-year return.3. **Refer the taxpayer to his supervisor** for further assistance.4. **Refuse to prepare the current-year return** until the prior-year return is amended. 5. **Mark for follow up** - Indicate that this matter requires further attention and should be revisited to ensure proper resolution.*Educational Note:*Understanding the appropriate steps to take upon discovering an omission in a tax return is crucial for both taxpayers and tax preparers. It's important to address such issues promptly to comply with tax laws and avoid potential penalties. Always consult a tax professional if you encounter similar scenarios.

Facts provided: While preparing a 2021 return for a taxpayer it was determined that the taxpayer had…

Question 44 of 50. While preparing a 2021 return for a taxpayer, Tyreek, a paid preparer, determined that the taxpayer had omitted certain items of income when they filed their prior-year return. Tyreek should advise the taxpayer promptly of the fact of such omission and: O Advise them of the consequences of not amending the previous year's return. on the current-year return.

Question 44 of 50. While preparing a 2021 return for a taxpayer, Tyreek, a paid preparer, determined that the taxpayer had omitted certain items of income when they filed their prior-year return. Tyreek should advise the taxpayer promptly of the fact of such omission and: O Advise them of the consequences of not amending the previous year's return. on the current-year return.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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