Freda is a certified public accountant and member in good standing of the AICPA. Recently, she was asked to make certain recommendations regarding a taxpayer's tax return positions concerning a like-kind exchange engaged in by the taxpayer. In reviewing the exchange (authorized by Internal Revenue Code Section 1031), Freda determined that the taxpayer would likely not be able to achieve a tax-free exchange based on applicable law. In assessing relevant laws, Freda determined that there was no realistic possibility that tax-free treatment could be achieved under the facts. Apparently, other experts representing the taxpayer's interests in the exchange had made some mistakes which, in Freda's view, clearly compromised the ability of the taxpayer to lay claim to a tax free exchange. Unfortunately, Freda's best friend Catherine was one of the non-tax experts who made some mistakes which caused the adverse tax result. In no small part because Catherine had referred the client to Freda, Freda decided to recommend that the transaction be reported as a tax-free exchange. By way of justification, Freda assured herself that it really didn't matter that the position was likely incorrect because the IRS audit frequency was extremely low and it was unlikely that the client would be audited. Is it appropriate for Freda to recommend the tax-free exchange reporting position? Discuss.