Card Set Information
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