1. Jonathan was notified by the IRS that he should appear at the local IRS district office with support for his 2012 travel and entertainment expenses as well as his charitable deductions. It was a really nice day, so Jonathan went skiing rather than to the appointment. On the way to the ski resort Jonathan called his tax preparer, Sue Johnson, CPA, and told her that he wasn’t going to the appointment. What penalty or penalties could Jonathan be subject to? What about the Sue Johnson, CPA?

2. If Jonathan ultimately doesn’t agree with the findings of the IRS, what are his options?