Okay, let's try again:
Familiarize yourself with the AL table of contents which includes IRC and TS:
REG – AL
Let’s say this is your AL task:
Linda Hall, CPA prepare the annual Form 1065 for Florida Partnership. She plans to use an estimate made by Florida Partnerships when she prepares the tax return. She wants to know whether she needs to disclose to the taxing authority the use of the estimate in the return. Where will Linda find guidance on the disclosure requirements?
Using the table of contents that you have already mastered, you know it in your heart where would this section be found.
Hmmm, AL has two sections, it can only be under AICPA PS or Tax Services.
TS standards have 7 sections:
AICPA Professional Stds.
-Tax Svcs [TS]
-Section 100 P – Tax Return Positions
200 A – Answers to Questions on Returns
300 C – Certain Procedural Aspects of Preparing Tax Returns
400 U – Use of Estimates
500 D – Departure from Position Previously Concluded in an Admv. Proceeding or Court Decision
600 K – Knowledge of Error: RPAP [Return Preparation & Administrative Proceeding]
700 F – Form & Content Advice to TPs
Obviously, it should be under the folder of Section 400 of SSTS -USE OF ESTIMATES, which has only seven sub-folders.
Let’s browse through the entire sub-folder and sections…..Bingo!
SSTS or TS-400-07
7. Specific disclosure that an estimate is used for an item in the
return is not generally required; however, such disclosure should be
made in unusual circumstances where nondisclosure might mislead
the taxing authority regarding the degree of accuracy of the return as a
whole. Some examples of unusual circumstances include the following:
a. A taxpayer has died or is ill at the time the return must be
filed.
b. A taxpayer has not received a Schedule K-1 for a pass-through
entity at the time the tax return is to be filed.
c. There is litigation pending (for example, a bankruptcy proceeding)
that bears on the return.
d. Fire, computer failure, or natural disaster has destroyed the
relevant records.
I hope it helps.
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