AICPA 4-27

  1. Who creates standards for tax practices?
    • AICPA
    • State Accountancy Boards
    • IRS
  2. ACIPA ethics rules for tax practice are called...
    Statements on Standards for Tax Services (SSTS)
  3. A member who engages in tax services is responsible to two clients
    • Taxpayers
    • Tax system
  4. Who has ultimate responsibility for the contents of the return?
    The tax payer
  5. 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.
  6. 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.
  7. 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.
  8. 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
  9. When may you use a taxpayer's estimate?
    • If it's not practical to obtain exact data
    • You determine that the estimates are reasonable
  10. 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.
  11. Upon becoming aware of any error you should...
    • Inform the taxpayer
    • Advise the taxpayer of the potential consequences
    • Recommend appropriate corrective measures
Card Set
AICPA 4-27