Does scott have a duty to ask moos brothers

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Reference no: EM132217564

Question: Each year for the past 8 years, Scott's Accounting and Tax business has prepared the annual Form 1065 for the Moos Brother's Partnership. Scott Frost, the sole proprietor of Scott's Accounting and Tax business, has Moos Brothers complete a Form 2848 each year just in case the IRS has any questions about the return. Scott used to give Moos Brothers an organizer to complete, but the return has become so routine that in 2018, the managing partner of Moss Brothers just called Scott to give him the partnership's 2017 income and expenses over the phone. In each of the last 8 years, Moos Brothers had significant revenue from a local facility. In 2017, the managing partner did not report any revenue from that facility in his verbal report to Scott.

1. Does Scott have a duty to ask Moos Brothers about additional income from the facility or a duty to request written copies of its Forms 1099? Explain?

2. If Moos Brothers assures Scott that there was no income from the facility, can he rely on that assurance? Explain

3. Scott has a power of attorney on file. Should Scott get a transcript of the account to verify that information that Moss Brothers has given him? Explain

4. Are there any other steps that Scott should take? Explain

Reference no: EM132217564

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