In preparing an income tax return, the use of a client's estimates is not permitted.

Question

Quizplus · Accepted Answer

Clients may use estimates to prepare their tax return if they do not have all the necessary information to determine the exact amounts, but the tax preparer must make it clear on the return that estimates were used. However, the tax preparer should not base their calculations solely on the client's estimates without attempting to verify them or obtain more accurate information.

In Preparing an Income Tax Return, the Use of a Client's