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Who creates standards for tax practices?
- State Accountancy Boards
ACIPA ethics rules for tax practice are called...
Statements on Standards for Tax Services (SSTS)
A member who engages in tax services is responsible to two clients
Who has ultimate responsibility for the contents of the return?
The tax payer
Tax tax return position is...
- A position reflected on a tax return on which you've specifically advised a taxpayer; or
- A position about which you have knowledge of all material facts and, on the basis of those facts, have concluded whether the position is appropriate.
When recommending a position, preparing, or signing a return on which a position is taken, you should advise the taxpayer regarding...
- Potential penalty consequences
- Any opportunity to avoid those penalties through disclosure.
You must not recommend a position, prepare, or sign a return reflecting a position that you know...
- Exploits the audit selection process
- Serves as a mere arguing position advanced solely to obtain negotiation leverage.
Reasonable grounds for omitting an answers on the return...
- Information isn't readily available, and the answer isn't significant
- There is genuine uncertainty regarding the meaning of the question
- The answer to the question is voluminous
When may you use a taxpayer's estimate?
- If it's not practical to obtain exact data
- You determine that the estimates are reasonable
Under SSTS No. 6 what is an error?
- Any position, omission, or method of accounting that fails to meet the standards of SSTS No. 1; or
- A position taken on a prior year's return that no longer meets SSTS No. 1 standards.
Upon becoming aware of any error you should...
- Inform the taxpayer
- Advise the taxpayer of the potential consequences
- Recommend appropriate corrective measures