Ryan's client told him that he had additional income for a side job but does not want to report the income since he is paid under the table and he did not receive a Form 1099. Ryan filed the return and chose not to report the income since he didn't have any documentation or proof of the income. As a result, the client paid less tax. Ryan charged $500 for the tax preparation. The IRS audited the client; they can assess what penalty to Ryan as a paid preparer