In this discussion, you will look at two issues: the first, from the perspective of yourself as a sole practitioner, and the second, a scenario encountered by one of your clients.

Review the "What would you do in this situation?" presented in your text. Would you try this scheme for increasing your profits? If so$,$ would you escape the scope of Sec. $7206?$

An IRS audit uncovered additional taxes due for your client. Your client agreed to pay the additional taxes plus the negligence penalty. Does this penalty apply to the total additional taxes that your client owes?