AICPA Case Study

Statements on Standards for Tax Services:

Due to the fact that tax practitioners have a very high level of ethical responsibility, the volume of guidance and help throughout the process of becoming a tax practitioner is as equally high. A tax practitioner must hone in on specific characteristics such as judgment, honesty, devoted, ambitiousness, faithfulness and persistency. Through the institutions of standards, the AICPA assists their members with ethical responsibilities. The AICPA has Statements on Standards for Tax Services as a detailed outline for tax practitioners to determine the level of their performance. The specific standards (in no particular order) that tax practitioners can use to determine their level of performance consist of:
1. Knowledge of Error: Return Previously Concluded in an Administrative Proceedings of Court Decision
2. Use of Estimates
3. Tax Return Positions
4. Form and Content of Advice to Taxpayers
5. Certain Procedural Aspects of Preparing Returns
6. Answers to Key Questions on Returns
7. Departure From a Position Previously Concluded in an Administrative Proceedings of Court Decision Each and every standard presented by the AICPA is crucial to a tax practitioner and the ability for a tax practitioner to commit

These errors may be a result of a taxpayer’s disregard or negligence when filing a required tax return, which can even lead to administrative proceedings. When mistakes are discovered while services are being provided to taxpayers, the issues surrounding these mistakes must be addressed. It is the tax practitioner’s job to decide whether or not to withdraw from an engagement. Through professional judgment, the tax practitioner will know whether to stay in or withdrawal from the engagement based upon the taxpayers choice of whether to correct the error or ignore