Which of the following statements about the Statements on Standards for Tax Services is true?
A)A CPA is never allowed to use a taxpayer's estimates when preparing a tax return.
B)The CPA must tell the IRS upon becoming aware that an error has been made on a past tax return.
C)The CPA may in good faith rely on information provided by the taxpayer, without verifying the reliability of that information if reasonable inquiries are made where the information furnished appears to be incorrect.
D)The CPA should not recommend that a taxpayer take a certain position if there is any doubt as to whether the position would be approved by the IRS upon audit.

Question

Quizplus · Accepted Answer

According to Statement on Standards for Tax Services No. 6 (SSTS 6), a CPA may rely on information provided by the taxpayer without verifying its reliability if reasonable inquiries are made and the information appears to be correct. A is false as estimates are often used when preparing tax returns. B is not a requirement under the SSTS, but a CPA is required to advise the taxpayer to correct the error. D goes against the principles of the SSTS, as a CPA should provide complete and objective advice to the taxpayer, regardless of any potential IRS audit.

Which of the Following Statements About the Statements on Standards