Final answer:
A practitioner cannot ethically continue to prepare tax returns for a client who refuses to correct a known error on a past return, as it would violate professional standards.
Step-by-step explanation:
The question whether a practitioner can still prepare returns for a client, even if the client refuses to correct an error on a past return, is a matter of ethical and regulatory standards in tax practice. Based on ethical guidelines and IRS regulations, the correct answer is False.
A tax practitioner must adhere to certain ethical standards, one of which is the requirement to not knowingly be associated with the presentation of a false or fraudulent return. Preparing future returns for a client who refuses to amend a past error would make the practitioner complicit in the continuance of submitting incorrect information. Therefore, a practitioner should not continue to prepare returns if they are aware of an unresolved error on a client's past return that the client refuses to correct.