Issues or penalties for amending a return if the client didn't report expenses?
A new client of mine left off Schedule C expenses a couple years ago because she was trying to show higher income while applying for a mortgage, and I noticed this while reviewing her records and seeing the expenses in her books were higher than her return.
I understand it's wrong to do this because it's inaccurate, but should I suggest she amend the return? Could she face any consequences by opening up this can of worms?