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    Pindi Yulinar Rosita - Summary Chapter 9

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    Pindi Yulinar
    The document discusses the ethics of tax accounting. It outlines the responsibilities of tax accountants to be honest and not misrepresent facts on tax returns. Tax accountants must point out to clients what taxes are legally owed and should not assist clients who want to take advantage of the tax system. There are seven standards of tax services that accountants should follow, including only recommending positions that could be sustained, making reasonable efforts to obtain necessary information, and using professional judgment to ensure advice serves clients' needs. Accountants need to recognize their responsibility to society over saving individual clients money through questionable schemes.

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    Pindi Yulinar Rosita - Summary Chapter 9

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    Pindi Yulinar
    69 views2 pages
    The document discusses the ethics of tax accounting. It outlines the responsibilities of tax accountants to be honest and not misrepresent facts on tax returns. Tax accountants must point out to clients what taxes are legally owed and should not assist clients who want to take advantage of the tax system. There are seven standards of tax services that accountants should follow, including only recommending positions that could be sustained, making reasonable efforts to obtain necessary information, and using professional judgment to ensure advice serves clients' needs. Accountants need to recognize their responsibility to society over saving individual clients money through questionable schemes.

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    Pindi Yulinar Rosita_Summary Chapter 9

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    The document discusses the ethics of tax accounting. It outlines the responsibilities of tax accountants to be honest and not misrepresent facts on tax returns. Tax accountants must point out to clients what taxes are legally owed and should not assist clients who want to take advantage of the tax system. There are seven standards of tax services that accountants should follow, including only recommending positions that could be sustained, making reasonable efforts to obtain necessary information, and using professional judgment to ensure advice serves clients' needs. Accountants need to recognize their responsibility to society over saving individual clients money through questionable schemes.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    69 views2 pages

    Pindi Yulinar Rosita - Summary Chapter 9

    Uploaded by

    Pindi Yulinar
    The document discusses the ethics of tax accounting. It outlines the responsibilities of tax accountants to be honest and not misrepresent facts on tax returns. Tax accountants must point out to clients what taxes are legally owed and should not assist clients who want to take advantage of the tax system. There are seven standards of tax services that accountants should follow, including only recommending positions that could be sustained, making reasonable efforts to obtain necessary information, and using professional judgment to ensure advice serves clients' needs. Accountants need to recognize their responsibility to society over saving individual clients money through questionable schemes.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 2

    The Ethics of Tax Accounting

    The tax accountant has several responsibilities to the public, through the government.
    First, the tax accountant has an obligation not to lie or be party to a lie on a tax return.
    Second, “ the signature on a tax return is a declaration under penalties of perjury that to the
    best of the preparer ’ s knowledge, the return and accompanying schedules and statements are
    “ true, correct, and complete ”. The taxpayer has the fi nal responsibility for the
    representation of the facts and for the positions taken on the return, but the accountant has the
    responsibility to point out to the client what is legally owed and not owed, and the
    responsibility not to go along with a client who wants to take advantage of the tax system.
    There are seven standards presented in the Statements on Standards for Tax Services. the
    following summarize the central themes of each standard:
    1. A member should not recommend a tax return position unless it has a realistic
    possibility of being sustained on its merits.
    2. A member should make a reasonable effort to obtain from the taxpayer the
    information necessary to answer all questions on tax returns.
    3. A member may rely on information furnished by the taxpayer or third parties
    without verification
    4. A member may use the taxpayer ’ s estimates in the preparation of a tax return if it
    is not practical to obtain exact data and the member determines that the estimates
    are reasonable based on the facts and circumstances known to the member.
    5. A member may recommend a tax return position or prepare or sign a return that
    departs from the treatment of an item as concluded in an administrative
    proceeding or court decision with respect to a prior return of a taxpayer.
    6. A member should inform the taxpayer promptly upon becoming aware of an error
    in a previously fi led return or upon becoming aware of a taxpayer ’ s failure to fi
    le a required return.
    7. A member should use professional judgment to ensure that tax advice provided to
    a taxpayer refl ects competency and appropriately serves the taxpayer ’ s needs
    A system that depends on self - assessment and reporting puts one in mind of the type of
    operation which makes golf such an honorable game. As we noted, those who take advantage
    of the system are free riders. The tax system can be and is abused by accountants and
    accounting fi rms using tax avoidance schemes. Accountants and accounting fi rms need to
    recognize their responsibility to the society at large, even where this might be at the expense
    of their client.
    If it were we would need no sanctions by the IRS to compel compliance with the tax
    code, not to mention the spirit of the tax code. I want my tax accountant to save me as much
    money as possible. The leading helps are personal moral values and standards plus a culture
    in the fi rm which does not encourage compromising ethical values to achieve organizational
    goals - – a strong management philosophy that emphasizes ethical conduct and clear
    communication that such ethical behavior is expected.
    We will conclude this chapter by noting other standards that appear in the SSTS.

     Standard Statement No. 1. Tax return positions


     Standard Statement No. 3. Certain p rocedural a spects of preparing returns
     Standard Statement No.4. Use of estimates
     Standard Statement No. 6. Knowledge of error
     Standard Statement No. 7. Form and content of advice to taxpayers

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