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Which of the following statements is correct with respect to the AICPA's Statements on Standards for Tax Services (SSTS)?


a.

SSTS apply only to tax returns that are being prepared for external clients and not to those that are being prepared for employers.

b.

SSTS apply only to federal income tax returns and not to state and local tax returns.

c.

In general, a preparer should recommend a tax return position only if the preparer has a good faith belief that the position has a realistic possibility of being sustained on its merits.

d.

A tax return position is (1) a position reflected on a tax return on which a preparer has specifically advised a taxpayer and (2) a position about which a preparer has concluded whether the position is appropriate.

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