http - http:/www.irs.gov/pub/irs-pdf/p17.pdf pg. 268 (kinda...

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http://www.irs.gov/pub/irs-pdf/p17.pdf pg. 268 (kinda 270) Your Right as a Taxpayer ETHICS DISCUSSION CASE 82. Return to the facts of problem 67. Assume that you are the CPA in charge of preparing the tax return for each of the taxpayers in the problem. Based on the Standards for Tax Services (Appendix D), explain what you should do in each case. Your discussion should indicate which, if any, of the eight statements is applicable and your obligations with regard to each applicable statement. If the facts are not sufficient to determine whether a statement applies to a situation, discuss the circumstances in which the statement would apply. Parts a, b, and c of problem 67 involve tax evasion and therefore, present ethical issues for the CPA preparing the returns of the taxpayers. The taxpayers in parts d and e are not evading taxes and the CPA can prepare and sign the returns of the taxpayers in those circumstances. In all 3 evasion cases, if the CPA is aware of the evasion behavior, SSTS #1 would apply. This statement would not allow the CPA to prepare or sign a return if the CPA believes that a position taken on the return does not have a "reasonable possibility" of being sustained if challenged. SSTS Interpretation 1-1 states that in order to meet the "reasonable possibility" standard, the CPA must believe, in good faith, that the position is warranted by existing law or can be supported by a good-faith argument that the
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http - http:/www.irs.gov/pub/irs-pdf/p17.pdf pg. 268 (kinda...

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