According to Statement on Standards for Tax Services No

question 81

Multiple Choice

According to Statement on Standards for Tax Services No. 1, a tax practitioner can recommend a tax return position:

• A) if the position is frivolous and disclosed on the tax return.
• B) if the position complies with the standards imposed by the applicable tax authority.
• C) only if the position meets the "more likely than not" standard.
• D) only if the position meets the "clear and convincing evidence" standard.
• E) None of these.

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Definitions:

Implicit Knowledge

refers to knowledge that is gained through experience and not easily communicated or transferred to others.

Strategic Knowledge

Deep understanding and insight related to the formulation, implementation, and evaluation of plans to achieve business objectives.

Programmed Decisions

Decisions that are routine and repetitive, which can be handled by established business rules and procedures.

Imagery

The use of visually descriptive or figurative language in writing to create vivid pictures in the reader's mind or the use of visual representations in the mind through imagination.