Question

Sonya Fuentez, an IRS-enrolled agent, is preparing an annualincome tax return for Carlito Alverez. Sonya is a littleapprehensive about the engagement because she’s heard rumor thatAlverez is a major drug trafficker with roots in Colombia.

At Alverez’s request, Sonya visits his home to discuss the detailsof his return. When she arrives, she’s shocked by the opulence shesees. The house is on 2 acres of land just west of the IntracoastalWaterway in Miami Beach. The land is completely surrounded bycanals and connects to the rest of the city only via a narrowbridge that has small guardhouse and security team protecting theentrance to the driveway. She sees other uniformed security guardswalking around the perimeter of the property.

The three-story house appears to be as large as a small city block.She’s escorted by a housekeeper to a rear patio and garden whereAlverez is sipping a martini and watching the large boats goby.

“Welcome to my humble abode,” he says. “I hear you’re really good.I hate paying taxes, so I need an accountant who can save me asmuch money as possible.”

Sonya smiled and accepted a martini from a tray brought to her by aman wearing crisp black and white tuxedo-type clothes.

“I’ll pay you $50,000 for your help,” he said. “All in cash, if youwant.”

Sonya needed the money, so she said, “Ok, I’ll accept your verygenerous offer.”

“Great,” he said. “Let’s get started.”

“One thing first,” she said. “I must ask you before we start not totell me about any illegal activities. I won’t be able to help youif you do that. I must also tell you that you must be completelytruthful in your tax return, and you must report all income.”

“Okay,” he said, “I get most of my money from commissions on myinternational import and export business.” He grinned from ear toear. “I don’t mind paying my taxes on that. The U.S. has been goodto me, and I’m happy to do my part in the tax system here.”

“You’re a Columbian citizen?” she asked.

“I’m a naturalized U.S. citizen,” he replied. “I even got to seeJohn Ashcroft at the ceremony at the Convention Center.”

He went on to show her detailed records of income and expenses.Most of the incoming funds had been deposited directly into foreignbanks.

“I’ll take these documents back to my office,” she said.

She returned to her office and spoke to Julia Whitaker, herpartner.

“Don’t even think about doing this guy’s tax return,” saidJulia.

“What do you mean?” asked Sonya. “He wants to pay his taxes. All Iwant to do is help him.”

“Yes, but we both know what he imports and exports.”

“You don’t know anything for sure,” snapped Sonya. “Just becausehe’s rich and has a reputation doesn’t make him guilty ofanything.”

“Forget that,” said Julia. “Let’s just assume he’s a drugtrafficker. Given that, can you accept this engagement?”

Can and should Sonya accept the engagement with Alverez? Why or whynot?