You are the managing partner for Doo Wright, CPAs, a regional CPA firm in Pomona, California which desires to expand its market share in the Inland Empire area of Southern California.

The firm recently hired Slick Rick, Esq., CPA, & EA, who is a progressively minded professional. Slick was responsible for HR Block's highly successful advertising program called - "It's Refund Season." This program relied heavily on enticing taxpayers with big bold TV ads and cash prizes to become tax clients. IRS has previously suspended Rick from practice before IRS due to a variety of issues. This actionimpacted Rick's E.A. license.

Slick is implementing an aggressive marketing program for your firm this tax season called - "Name Your Refund" - which will rely on attracting new tax clients with outrageous TV ads on local cable stations and attractive cash prizes. The proposed ads make extraordinary promises for success with IRS.

Ads ask taxpayers to go to the firm's new website called Avoiding Taxes - The Wright Way.com which coaches potential clients under the "Name Your Refund" tab about the numbers they will need to generate a tax refund. Another website tab - "No 1099 = No Income" discusses documentation to bring to the initial meeting.

The firm will rely upon statements by clients in preparing tax returns and will not aggressively pursue back-up information from clients because it might be too time consuming for the clients.

Keep it simple but organized. Reference the appropriate Circular 230 Sections, AICPA Rules. 2-3 sentences per question.

1. Discuss Rick's overall behavior and his progressive approach to obtaining new clients for the firm

2. What potential issues could be raised by Rck's association with your firm?

Answer rating: 100% (QA)

D Wright a regional CPA company in place C aspires to develop its market share in the inland empire ... View the full answer