AICPA's New Statements on Standards for Tax Services: Assessing Tax Positions, Safeguarding Data, Handling Errors

The AICPA recently updated, revised, and expanded the SSTSs. The new standards are effective Jan. 1, 2024, and all AICPA members who provide tax services are subject to the standards. These standards outline the responsibilities of tax preparers to the public and were long-awaited. The prior standards were effective Jan. 31, 2010.

The Standards now provide requirements for Data Protection and guidance for the CPA’s Reliance on Tools (e.g., software and research materials). The Standards also add a Statement providing guidance and requirements when the CPA is Providing Tax Representation Services before a tax authority.

Also, the previous Standards, generally retained in their entirety, have been reorganized along the functional areas of tax practice: General requirements and guidance (including advice on tax positions), requirements and guidance when Providing Tax Compliance Services (including reporting of tax positions on reflected on returns), when Providing Tax Consulting Services, and when Providing Representation Services.

Listen as our panel of experts discusses the latest developments in tax services standards. Tax advisers and professionals preparing returns must thoroughly understand the new requirements of the latest SSTSs.

1. New AICPA Statements on Standards for Tax Services
2. Statement 1 - General Standards
3. Statement 2 - Standards for Members Providing Tax Compliance Services
4. Statement 3 - Standards for Members Providing Tax Consulting Services
5. Statement 4 - Standards for Members Providing Tax Representation Services
6. Implementing the latest standards

The panel will review these and other critical issues:

• Assessing the "realistic possibility standard" when offering tax advice
• Deciding if there is "reasonable basis" for a position when no written guidance exists
• Handling the discovery of past errors under the new SSTSs
• Defining reasonable efforts when safeguarding taxpayers' data
• Best practices when using professional “tools” and when representing clients before a tax authority

Learning Objectives

After completing this course, you will be able to:

• Identify key components of the AICPA's new Statements on Standards for Tax Services
• Determine how to assess the "realistic possibility standard" when providing tax advice
• Decide how the new standards impact tax return preparation
• Ascertain steps that should be taken to safeguard taxpayers' data

• Field of Study: Regulatory Ethics
• Level of Knowledge:
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience, preparing reviewed, compiled, and audited financial statements and the relative disclosures. Specific knowledge and understanding of GAAP, SSARS, and peer review policies.

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