Question

Under Treasury Circular 230, which of the following actions of a CPA tax advisor is characteristic of a best practice in rendering tax advice?a. Requesting written evidence from a client that the fee proposal for tax advice has been approved by the board of directors.b. Establishing relevant facts, evaluating the reasonableness of assumptions and representations, and arriving at a conclusion supported by the law and facts in a tax memorandum.c. Recommending to the client that the advisor's tax advice be made orally instead of in a written memorandum.d. Requiring the client to supply a written representation, signed under penalties of perjury, concerning the facts and statements provided to the CPA for preparing a tax memorandum.e. All of the above

Answer 1

Answer:

The correct answer is letter "B":  Establishing relevant facts, evaluating the reasonableness of assumptions and representations, and arriving at a conclusion supported by the law and facts in a tax memorandum.

Explanation:

Among the best practices that tax advisers are committed to we can find defining the facts, deciding that facts are particular, evaluating the rationality of any conclusions or interpretations, applying the applicable law to the particular facts, and reaching a conclusion informed by law and evidence.