Consider the facts under Question 31. Instead of State X making an error in its issuance of a particular tax form, assume the tax form is correct regarding State X's forms. Assume Walter utilizes the "Speedy Tax" software program. Like other professional tax preparation programs, Baines has found Speedy Tax to be very reliable in generating correct tax returns in a form permissible for filing. Wilson is employed by Speedy Tax as a computer programmer charged with the responsibility to update the computer generated forms and calculations used to file State X returns. Unfortunately, unbeknownst to his manager, Wilson often fell asleep at his desk and, unfortunately, he never noticed that the new Speedy Tax computer generated State X forms without being revised to take account of the new capital gains tax rates. To add to the problem, Walter is not a giant in his knowledge of computer generated tax returns and he relies upon his less experienced employees to do the computer inputting. In addition, Walter relies on the correctness of the Speedy Tax forms. Consequently, tax returns are filed erroneously reporting the capital gains tax rates. What should Walter do under the following alternative circumstances:
• Walter filed the tax returns two months prior to their due date, but recognizing the error, Speedy Tax updated its software program prior to the due date on its website accessible through an update service and promptly fired Wilson?
• Walter filed the tax returns two months prior to their due date, but later recognizing the error, he considers whether to file amended returns?