According to the Statements on Standards for Tax Services, what belief should a CPA have before taking a pro-taxpayer position on a tax return?
What will be an ideal response?
The CPA should have a good faith belief that the pro-taxpayer position is warranted in existing law or can be supported by a good-faith argument for an extension, modification, or reversal of existing law. The position should have a realistic possibility of being sustained administratively or judicially on its merits if challenged.
You might also like to view...
Which of the following methods of assigning indirect service department costs recognizes on a partial basis the reciprocal relationships among the departments?
a. step method b. direct method c. indirect method d. algebraic method
Describe why motor carrier service in the U.S. has (in recent decades) dominated the freight market over rail service.
What will be an ideal response?
Automatic reinvestment of dividends and interest income
A) is a default option for most mutual funds. B) will allow investors to defer taxes on the amounts earned. C) must be reauthorized by the investor each year. D) will subject investors to excessive commissions on small transactions.
In an inert organizational culture,
A. values and norms help the organization build momentum. B. employees regularly receive rewards for their performance. C. the organization tries to avoid layoffs. D. poor working relationships frequently develop between the organization and its employees. E. the organization emphasizes long-term employment.