According to Statements on Standards for Tax Services No. 1, a tax practitioner can recommend a tax return position:

Question

Quizplus · Accepted Answer

According to Statements on Standards for Tax Services No. 1, a tax practitioner can recommend a tax return position if it complies with the standards imposed by the applicable tax authority. This means that the position must be based on a reasonable interpretation of the tax law and supported by relevant facts and circumstances. The practitioner must also consider the potential penalties and the likelihood of the position being sustained upon examination by the tax authority. Therefore, choice B is the correct answer. Choices A, C, and D are incorrect. Choice A is incorrect because a tax practitioner cannot recommend a frivolous tax return position, even if it is disclosed on the return. Choices C and D are incorrect because the "more likely than not" and "clear and convincing evidence" standards pertain to whether a taxpayer can avoid penalties for an uncertain tax position, not whether a tax practitioner can recommend such a position.