AICPA SSTS #1 Requires That a Client's Tax Return Position

question 108

Multiple Choice

AICPA SSTS #1 requires that a client's tax return position:

• A) Have a realistic possibility of being sustained if challenged by the Treasury or in the courts.
• B) Be supported by substantial authority.
• C) Agree with all pertinent IRS interpretations of the tax law.
• D) Follow all interpretations of the tax law that were reflected on the immediately prior tax year's return.

---

Definitions:

Constraint

A limitation or restriction that affects an organization's ability to achieve its objectives, such as limited resources or time.

Production Bottleneck

A point in the manufacturing process where the demand for a company’s product exceeds the ability to produce the product. Also referred to as a constraint.

Markup Percentage

The percentage added to the cost of a product to determine its selling price.

Invested Assets

Assets held by an entity for earning income, gaining profits, or other benefits, including stocks, bonds, and real estate.