Question

True or False.

A CPA may recommend a tax return position if she concludes that there is a reasonable basis for the position and advises the taxpayer to disclose that position appropriately

Answer 1

True, a CPA may recommend a tax return position with a reasonable basis and must advise the taxpayer to disclose it properly.

so The answer is True.

Step-by-step explanation:

A Certified Public Accountant (CPA) may recommend a tax return position as long as there is a reasonable basis for the position. This involves a degree of authority and support for the tax position, which is less stringent than the more likely than not standard. However, when a CPA advises a client on such a position, it is their professional responsibility to ensure the taxpayer is fully informed about the potential for penalties and the likelihood of tax audit success.

Furthermore, the CPA must advise the taxpayer to disclose the position appropriately on their tax return. Disclosure helps to avoid penalties and demonstrates good faith in the case that the IRS challenges the position.

The statement is True.