Enrolled Agent (EA) Part 3 — Representation, Practices, and Procedures Syllabus

Part 3 — Representation, Practices, and Procedures syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Part 3 — Representation, Practices, and Procedures in Enrolled Agent (EA), not a summary of it.

1. 1

   Practices and Procedures Under Circular 230

   4 topics

   • Practice before the IRS
     • Who may practice and scope of EA authority
     • Powers of attorney (Form 2848) and Form 8821
   • Duties and restrictions
     • Diligence, conflicts of interest, and best practices
     • Restrictions on fees, advertising, and solicitation
     • Client records and prompt disposition of matters
   • Sanctions and disciplinary procedures
     • Censure, suspension, and disbarment
     • Office of Professional Responsibility proceedings
     • Monetary penalties on practitioners
   • EA credential maintenance
     • Enrollment, renewal, and PTIN requirements
     • Continuing education requirements
2. 2

   Representation: Examinations, Appeals, and Collections

   4 topics

   • Examinations and audits
     • Types of audits (correspondence, office, field)
     • Examination process and substantiation
     • Information document requests
   • The appeals process
     • 30-day and 90-day letters
     • IRS Office of Appeals procedures
     • Fast track settlement and mediation
   • Collection process
     • Liens, levies, and seizures
     • Collection Due Process and Collection Appeals Program
     • Currently not collectible status
   • Payment alternatives
     • Installment agreements
     • Offers in compromise (Form 656)
     • Penalty abatement and reasonable cause
3. 3

   Penalties, Authority, and Specific Procedures

   3 topics

   • Penalties and interest
     • Failure-to-file and failure-to-pay penalties
     • Accuracy-related and fraud penalties
     • Preparer penalties (Sections 6694 and 6695)
   • Tax authority and research
     • Internal Revenue Code, regulations, and rulings
     • Hierarchy of authority and precedent
   • Taxpayer rights and special programs
     • Taxpayer Advocate Service and Taxpayer Bill of Rights
     • Identity theft and IP PIN procedures
4. 4

   Completing the Filing Process and Professional Ethics

   4 topics

   • Accuracy and disclosure standards
     • Reasonable basis and substantial authority
     • Disclosure of positions (Forms 8275 and 8275-R)
   • Due diligence requirements
     • Refundable credit due diligence (Form 8867)
     • Recordkeeping for due diligence compliance
   • Confidentiality and privilege
     • Section 7525 practitioner-client privilege
     • Limits on privilege in criminal and promoter matters
   • Electronic filing and recordkeeping
     • e-File requirements and authorized e-file providers
     • Record retention requirements

Part 3 — Representation, Practices, and Procedures flashcards for Enrolled Agent (EA)

20 of 79 cards from the Part 3 — Representation, Practices, and Procedures deck — real questions with worked answers.

1. What is meant by "practice before the IRS"?

   All matters connected with a presentation to the IRS relating to a taxpayer's rights, privileges, or liabilities — including preparing and filing documents, corresponding and communicating with the IRS, rendering written tax advice, and representing a client at conferences, hearings, and meetings.

2. Which document governs practice before the IRS, and where is it published?

   Treasury Department Circular 230, codified in Title 31 of the Code of Federal Regulations, Part 10 (31 CFR Subtitle A, Part 10).

3. What is an Enrolled Agent (EA)?

   A federally licensed tax practitioner empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the IRS, with unlimited practice rights (representation, advising, and preparing returns).

4. Who has unlimited representation rights before the IRS?

   Enrolled Agents, CPAs, and attorneys — they may represent any taxpayer on any tax matter before any IRS office, regardless of who prepared the return.

5. Who has only limited representation rights before the IRS?

   Annual Filing Season Program (AFSP) participants and PTIN-holders without credentials — they may represent only clients whose returns they prepared and signed, and only before revenue agents, customer service reps, and similar examination employees (not Appeals, Collection, or Counsel).

6. What are the two paths to becoming an Enrolled Agent?

   (1) Pass all three parts of the Special Enrollment Examination (SEE) and apply for enrollment, or (2) qualify based on at least 5 years of relevant past IRS employment applying and interpreting the tax code.

7. What must an individual obtain before being paid to prepare federal tax returns?

   A Preparer Tax Identification Number (PTIN), which must be renewed annually.

8. What is Form 23 used for?

   Application for Enrollment to Practice Before the IRS — filed to become an Enrolled Agent after passing the Special Enrollment Examination (SEE).

9. What is Form 2848 and what does it authorize?

   Power of Attorney and Declaration of Representative — it authorizes a recognized representative to represent the taxpayer before the IRS and to receive confidential tax information and act on the taxpayer's behalf.

10. What is Form 8821 and how does it differ from Form 2848?

    Tax Information Authorization — it allows a designated person to inspect/receive confidential tax information but does NOT authorize them to represent or advocate for the taxpayer (no power of attorney rights).

11. Under Circular 230, what is the standard for providing prompt disposition of matters before the IRS?

    A practitioner must exercise due diligence and may not unreasonably delay the prompt disposition of any matter before the IRS.

12. Under Circular 230, what must a practitioner do upon learning of a client's error or omission on a return?

    Promptly advise the client of the noncompliance, error, or omission and of the consequences under the Code and regulations — but the practitioner cannot disclose it to the IRS without the client's permission.

13. Can a practitioner under Circular 230 charge a contingent fee?

    Generally no for preparing original returns. Contingent fees are permitted only in limited situations: examination/audit of a return, a claim for refund filed in connection with an examination or with a penalty/interest, or judicial proceedings.

14. Under Circular 230, what records must a practitioner return to a client who requests them?

    All records of the client necessary for the client to comply with their federal tax obligations must be returned promptly, even in a fee dispute (state law may permit retaining the practitioner's own work product in some cases).

15. What does Circular 230 say about a practitioner's duty regarding due diligence on information furnished by a client?

    A practitioner may generally rely in good faith, without verification, on information furnished by the client, but may not ignore the implications of information already known and must make reasonable inquiries if information appears incorrect, inconsistent, or incomplete.

16. Which IRS office is responsible for Circular 230 enforcement and disciplinary actions against practitioners?

    The Office of Professional Responsibility (OPR).

17. What are the main sanctions OPR can impose under Circular 230?

    Censure (public reprimand), suspension of the right to practice, disbarment from practice before the IRS, and a monetary penalty (which may be in addition to or in lieu of suspension/disbarment).

18. What is the difference between censure and disbarment under Circular 230?

    Censure is a public reprimand allowing continued practice; disbarment permanently bars the practitioner from practice before the IRS (the practitioner may petition for reinstatement after 5 years).

19. After disbarment, when may a practitioner petition OPR for reinstatement?

    No earlier than 5 years after the effective date of disbarment (or suspension), and reinstatement is not guaranteed.

20. What body conducts hearings for proposed Circular 230 sanctions, and what is the burden of proof?

    An Administrative Law Judge (ALJ) conducts the hearing; OPR bears the burden of proving the violation by a preponderance of the evidence (or clear and convincing evidence for disbarment/suspension).

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