How should an EA document advice about a client return error?

The file should show what the EA discovered, what records were reviewed, what the client was told, what consequences were explained, what correction was recommended, and how the client responded. If the issue affects later return preparation, document that analysis too.

A short note saying "client declined" may not be enough. Strong documentation connects the error to the tax effect and shows why the EA either continued with a supportable position, limited the engagement, or withdrew.