Circular 230 along with several other pieces of legislation and ethical guidelines requires an accountant to inform authorities of illegal actions by your client that your client refuses to cease. Auditors are legally required to inform the SEC of illegal actions that the board of directors will not fix. The law makes it mandatory to rat out a client that does not change their actions.
Not at all. Reporting that you made only X dollars on your return when you know you made Y is fraud. It is also tax evasion. Avoidance however, is another issue. Evasion and fraud are fundamentally the same thing.Well, now you're talking about fraud. Big difference between fraud, evasion and cheating.