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:

Donee Beneficiary

A third party who benefits from a contract between two other parties, where the intent is to gift the benefit to the third party.

Third-Party

An entity that is involved in a transaction or legal matter indirectly, separate from the two principal parties directly involved.

Promise

An assurance given by one party to another agreeing to do or not do something in the future.

Insolvent

Refers to the condition of an individual or entity that cannot pay its debts when they are due.