John is a CFP® professional and is engaged in the financial planning process with his client Frank. John is in the data gathering process and has collected bank statements, insurance policies, estate documents, and all other relevant information except for tax returns. Frank refuses to supply the tax returns or any documents that support his income claims. John’s best course of action is to:________.
A. The CFP Board’s Practice Standards require John to disengage from the client until such time Frank is willing to supply tax returns or other documents to support his income.
B. If John suspects that Frank is evading taxes or under reporting his income, John is required by the Code and Standards to report his suspicions to the appropriate regulatory authorities.
C. John should contact the IRS and request a copy of tax returns for the past three years, with or without the consent of the client.
D. John may limit the scope of the engagement to recommendations for which he has sufficient and relevant information or disengage from the client.

There are rules that guide people like John in the delivery of their duties. One of these rules is that if a client is hiding or refuses to make or supply his or her tax returns or documents to show the income, the CFP professional in charge should disengage until the client is ready to supply the necessary or required documents. And this is what will happen to Frank also.

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