Ralph's Business Records Were Lost as a Result of Hurricane

question 36

Multiple Choice

Ralph's business records were lost as a result of Hurricane Katrina. CPA Jane prepares Ralph's return using estimates. What do the Statements on Standards for Tax Services state about the use of estimates?

• A)Estimates may not be used.
• B)Estimates may be used without disclosing their use to the IRS.
• C)Estimates may be used, but Jane should disclose their use to the IRS.
• D)The Statements on Standards for Tax Services do not address the use of estimates.

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