AICPA SSTS #1 requires that a client's tax return position:
A) Have a realistic possibility of being sustained if challenged by the Treasury or in the courts.
B) Be supported by substantial authority.
C) Agree with all pertinent IRS interpretations of the tax law.
D) Follow all interpretations of the tax law that were reflected on the immediately prior tax year's return.

Question

Quizplus · Accepted Answer

AICPA SSTS #1 requires that a tax return position must have a "realistic possibility" of being sustained on its merits if challenged. This standard does not demand that the position be supported by substantial authority, agree with all IRS interpretations, or follow interpretations from the prior year's return.

AICPA SSTS #1 Requires That a Client's Tax Return Position