In preparing an estate tax return, you listed the deceased’s total assets at $2.7 million. This is the amount that the executor of the deceased’s estate told you was proper. The executor is the deceased’s nephew and, for tax purposes, he is considered to be your client. He also is a major beneficiary of the deceased’s will.
The IRS now has selected this estate tax return for examination. Further discussions with the executor reveal that $400,000 of assets were not reported. You have told the executor that you would like to inform the IRS about this omission and correct it. The executor has refused to allow you to do so. What should you do? Explain?