Which of the Following Is CORRECT About a CPA's Responsibility

question 35

Multiple Choice

Which of the following is CORRECT about a CPA's responsibility with regard to tax return positions under Statements on Standards for Tax Services No. 1 (SSTS No. 1) :

• A) A CPA may not base his or her position on authority that is not approved by the IRS under Section 6662 (accuracy-related penalty).
• B) A CPA may sign a return which has a tax position that has a realistic possibility of being sustained on the merits.
• C) A CPA may not sign a return which has any tax position that is not fully disclosed.
• D) All of the above statements are correct.

---

Definitions:

Central Part

The core or most important component of an object, system, or idea.

Rejecting Someone

The act of turning someone down or refusing to accept or consider them, often in a social, romantic, or professional context.

Need To Belong

An intrinsic human urge to generate and maintain enduring, meaningful interpersonal connections.

Hypersensitive

Exhibiting an exaggerated or overly sensitive response to stimuli or situations, often resulting in emotional distress or discomfort.