Under the Statement on Standards for Tax Services,a CPA May

question 37

True/False

Under the Statement on Standards for Tax Services,a CPA may recommend a tax return position if the position is frivolous and the position is not disclosed on the tax return.

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Definitions:

Passive Income

Income earned from rental property, limited partnerships, or other enterprises in which a person is not actively involved.

Foreign Tax Credit

A nonrefundable tax credit for income taxes paid to a foreign government as a result of foreign income tax withholdings.

Taxable Income

The portion of an individual's or a corporation's income that is subject to taxation by the government after deductions and exemptions.

Foreign Income Taxes

Taxes levied by a foreign country on income earned within its jurisdiction, which can sometimes be credited against domestic taxes in the taxpayer's home country.