Statements on Standards for Tax Services Assignment - 1

Statements on Standards for Tax Services - Assignment Example The SST section that will apply to Marie’s situation is number 5 which stipulates that if the applicable authority lacks written standards in reference to the recommendation of the position of a tax return. The signing or recommendation or even the preparing of the tax return is pegged on section (a) which is only recommended when the position taken can either be sustained judicially or even administratively on its advantages when challenged. SST number 7 can also be incorporated. In this number, the member can’t recommend prepare or sign tax return position since the member may be exploiting the taxing authority’s audit selection process. It may also serve as arguing platform for the purpose of gaining leverage while negotiating with the authority (AICPA 10). Ashley’s action of not reviewing the original receipts may pose the danger since there is no absolute certainty that the list provided was authentic. In the event of advocating for the taxpayer according to SST, number 8 may be hampered if the receipts produced are not authentic. Besides SST number 8, number 10 can also be incorporated where the effectiveness of the function of the assessment is either true or complete or even correct. The preparation of the tax return is validated when the facts are represented by the taxpayer through the standard tends to differ among clients (AICPA 11). SST number 6 mandates members with the responsibility of giving advice to the taxpayer on the likely penalty effects such as opportunity and position of the return tax. In the events that the standards are altered, the members still are obliged to inform the taxpayers of the happenings.