Under the Statements on Standards for Tax Services, a CPA may recommend a tax return position if the position is frivolous and the position is not disclosed on the tax return.

Question

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According to the Statements on Standards for Tax Services, a CPA must not recommend a tax return position that is frivolous or advise a client to take a position that is not supported by a reasonable interpretation of the tax laws. Additionally, a CPA must inform the client of the penalties associated with taking such positions and must not ignore the requirements to disclose such positions on the tax return.