Ethical And Professional Responsibilities Practice Test

Any position may be taken as long as the taxpayer is willing to pay any resulting tax and penalties.

The CPA must obtain written authorization from the IRS before taking any uncertain position.

The position must have a realistic possibility of being sustained on the merits (generally interpreted as at least one-in-three or greater chance), or the position must be disclosed on the return if it meets only the not-frivolous standard.

The position must have at least a 50% probability of being sustained (more likely than not standard).