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After a lucrative career on Broadway and as an astrologer, your client decides to change careers and open up a tax preparation service called “Tax b

Assignment 1

After a lucrative career on Broadway and as an astrologer, your client decides to change careers and open up a tax preparation service called “Tax by the Stars.” He has no formal tax training. He wants to know the following:

  • What does he have to file with the IRS to be able to prepare tax returns for his family as a favor?
  • What does he have to file with the IRS to be able to prepare tax returns for paying clients?
  • What rules will he be subject to in his new business?

After several years preparing tax returns by the stars, he comes back to you for more advice. He says that was caught completely unaware but the IRS seems to disagree with what the stars told him his clients and family should report on their tax returns. Rather than leave things to fate, he has assured his clients that he will represent them in their audits. He asks your advice on the following:

  • What does he have to do to be able to represent his clients during their audits?
  • What regulatory rules will he be subject to?

Your client continues and tells you that he has a deep distrust (and slightly concerning obsession) with the American Bar Association (“ABA”) and wants nothing to do with it. He says that he went did not become a lawyer simply so that he won’t be subject to the ABA’s model rules. He wants you to reassure him that his strategy will be successful and he won’t ever be subject to ABA rules in a tax practice because he is not a lawyer.

Your client requests that you please write a memo addressing his six questions. Citation to statutes and case law is not necessary, but can make your memo more complete, earning you a bigger fee.

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