Danny Boy, a local CPA who owns a tax practice, is being investigated by the IRS for the preparation of false income tax returns for a client. The IRS alleges that the individual taxpayer/client used a substantial amount of his company’s funds for personal expenses, including payments for his personal car, car insurance, country club dues, and personal credit card charges. The IRS alleges that these personal expenses were used to reduce business taxable income so that the income taxes were underpaid by a significant amount. During its audit, the IRS found a schedule in Danny Boy’s workpapers that supported the false income of the client. Assuming the IRS concludes the allegations are true, is Danny guilty of tax fraud? Could he successfully claim to have exercised due care and any fraud is that of the client alone? Explain with regard to what the IRS has to show to prove the tax fraud.