Under the Statement 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

Quizplus · Accepted Answer

A CPA cannot recommend a tax return position that is frivolous, and they should only recommend positions that have a realistic possibility of being sustained upon challenge by the IRS. Furthermore, any position taken on a tax return should be disclosed in a clear and complete manner.