What is Statements on Standards for Tax Services?
In short
The Statements on Standards for Tax Services are the American Institute of Certified Public Accountants' enforceable standards for members' tax practice, covering tax return positions, answers to return questions, use of estimates, knowledge of errors and giving advice.
Key takeaways
- When a member learns of an error in a prior return, they tell the taxpayer promptly and recommend corrective action, but don't tell the tax authority without permission.
- Estimates can be used when records aren't available, if they are reasonable.
- A member should make a reasonable effort to answer all questions on a return.
Where it's tested
TCP: Tax Research & Documentation — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A tax practitioner finds a Private Letter Ruling issued to another taxpayer that directly supports the client's intended position. How should the practitioner treat it?