Professional Malpractice

Assignment Instructions

Analyze Business Case 47-6, “Professional Malpractice,” located below. Prepare a professional-caliber brief on the
case, based on the case information provided.


47–6. Professional Malpractice. Jeffery Guerrero hired James McDonald, a certified public accountant, to represent him and his business in an appeal to the Internal Revenue Ser- vice. The appeal was about audits that showed Guerrero owed more taxes. When the appeal failed, McDonald helped Guer- rero prepare materials for an appeal to the Tax Court, which was also unsuccessful. Guerrero then sued McDonald for professional negligence in the preparation of his evidence for the court. Guerrero claimed that McDonald had failed to ade- quately prepare witnesses and to present all the arguments that could have been made on his behalf so that he could have won the case. Guerrero contended that McDonald was liable for all of the additional taxes he was required to pay. Is Guerrero’s claim likely to result in liability on McDonald’s part? What factors would the court consider? [Guerrero v. McDonald, 302 Ga.App. 164, 690 S.E.2d 486 (2010)] (See Potential Liability to Clients.)

To support your brief:

  • Locate the relevant internal revenue code and regulations.
  • Explain the potential professional liability CPAs are exposed to
    for violating federal tax laws, and cite relevant sections of the code.

Based on the case information provided:

  • State the facts of the case and the key issues.
  • Determine whether the CPA is liable for the additional taxes owed by the client in this instance, and explain your reasoning.
    • Apply relevant internal revenue code and regulations in your decision, and explain your rationale.
    • Cite the relevant sections of the internal revenue code and regulations.
  • Express your main points, arguments, concepts, and information coherently and logically.

Additional Requirements

  • Cover page: Include your name, the assignment number, and the assignment or case title.
  • Length: 1–2 double-spaced pages, not including the cover page.
  • Font and font size: Times New Roman, 12-point.
  • APA formatting: Format resources and citations according to current APA guidelines.

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