Ralph's business records were lost as a result of Hurricane Katrina. CPA Jane prepares Ralph's return using estimates. What do the Statements on Standards for Tax Services state about the use of estimates?
◦ Estimates may not be used.
◦ Estimates may be used without disclosing their use to the IRS.
◦ Estimates may be used, but Jane should disclose their use to the IRS.
◦ The Statements on Standards for Tax Services do not address the use of estimates.