Question

Act of 33, 34, or common law? ACRA's client is filing suit for losses from errors in a tax return repaired by a CPA

A) Act of 1933
B) Act of 1934
C) Common law
D) None of the above

Answer 1

When filing suit for losses from errors in a tax return prepared by a CPA, the applicable legal framework is generally common law, specifically professional negligence or malpractice, rather than the Securities Acts of 1933 or 1934.

Step-by-step explanation:

The question addresses which regulatory framework applies when a client wants to file suit for losses incurred due to errors in a tax return prepared by a Certified Public Accountant (CPA). The losses described are not directly related to securities, which would be covered by the Securities Act of 1933 or the Securities Exchange Act of 1934. Instead, it is a matter that would typically be addressed under common law, particularly under the laws governing professional negligence or malpractice. Under common law, the client would need to prove that the CPA owed a duty of care to the client, the CPA breached that duty, and the breach caused the client's damages.