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.

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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 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.

What is the issues raised in this situation?

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