Question

Statement on Standards for Tax Services No. 1 establishes as a basic principle of providing tax services that the CPA:a. Must have a good faith belief that the tax return position will be accepted by the IRSb. Can never recommend a tax position to the client when it is more likely than not to be challenged by the IRSc. Must have a good faith belief that the tax return position has a realistic possibility of success if challenged by the IRSd. Can never recommend a tax position to the client without disclosing it to the SEC

Answer 1

a. Must have a good faith belief that the tax return position will be accepted by the IRS.

Step-by-step explanation:

Certified Public Accountant (CPA) is a term used to refer to the state title of approved accountants in the Uniform Certified Public Accountant Examination. The CPA allows these professionals to issue opinion statements in financial reports, following a few rules. For example, the Tax Services Standards Statement No. 1 states that a basic principle of the provision of tax services that the CPA has is to have a good faith belief that the tax return position will be accepted by the IRS.