Choice "D" is correct. A practitioner must return all client records at the request of the client.Choice "a" is incorrect. A practitioner cannot advise a client to take a tax return position that is frivolous under any circumstances. There is no such thing as an "officially recognized" tax protest organization. Choice "b" is incorrect. A practitioner must exercise due diligence in preparing tax returns and other documents (and in determining the correctness of any representations to the IRS). There is no waiver of such due diligence, either orally or in writing.Choice "c" is incorrect. A practitioner may normally rely "in good faith without verification" upon client-furnished information. However, that does not mean "under any circumstances." The practitioner cannot ignore contradictory information known to the practitioner and must make reasonable inquiries if client-furnished information appears to be questionable or incomplete. The client is not always right.
