CTRS Cheat Sheet 2026

The 30 highest-yield CTRS facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. The Collection Statute Expiration Date (CSED) is generally how many years from the date of assessment? → 10 years
2. Why is understanding taxpayer rights crucial in representation? → Knowing taxpayer rights helps ensure proper treatment and avoid violations.
3. A taxpayer qualifies for Innocent Spouse Relief under IRC Section 6015(b). What is a required element to qualify under this provision? → The requesting spouse must have had no knowledge of the understatement
4. Which IRS Collection Information Statement is used for wage earners and self-employed individuals when requesting Currently Not Collectible status? → Form 433-A
5. What is the user fee for establishing a direct debit installment agreement (DDIA) online? → $31
6. How can taxpayers resolve IRS tax debt through an installment agreement? → It allows taxpayers to pay off debt in smaller, manageable payments.
7. If a taxpayer in Currently Not Collectible status fails to file required future tax returns, what is the most likely consequence? → The IRS may remove the account from CNC status and resume enforced collection
8. A CTRS practitioner advertises that they can 'guarantee' a specific tax debt reduction for any client. This advertising claim is: → A violation of Circular 230 because guarantees of outcomes are prohibited
9. What is the maximum term for a non-streamlined (financially verified) installment agreement for an individual? → The IRS can grant an IA term up to the remaining CSED period, which can be up to 10 years
10. Under IRC Section 7521, which of the following rights does a taxpayer have during an IRS interview? → The right to suspend the interview to consult with a representative
11. What is the primary difference between a Partial Payment Installment Agreement (PPIA) and a standard Installment Agreement? → A PPIA allows payments less than what would fully pay the debt before the CSED expires
12. The Trust Fund Recovery Penalty (TFRP) under IRC Section 6672 can be assessed against which individuals? → Any responsible person who willfully failed to collect or pay over trust fund taxes
13. Why is it essential to stay updated on tax law and regulations? → It ensures that the specialist can provide accurate advice and avoid mistakes.
14. Which duty does a CTRS practitioner owe to future clients when accepting a new engagement? → Duty to check for conflicts of interest before accepting the engagement
15. A practitioner is contacted by an IRS special agent requesting an interview with their client. This most likely indicates which type of proceeding? → A criminal investigation
16. Why is confidentiality important in tax resolution? → Confidentiality ensures that client information is protected from unauthorized access.
17. What is an IRS Notice of Deficiency? → It is a formal IRS statement outlining an additional amount of tax owed.
18. A practitioner is soliciting clients via direct mail advertising tax resolution services. Under Circular 230, solicitations must: → Be truthful and not misleading, and clearly identify the practitioner's credentials
19. Which IRS forms are required to submit a Doubt as to Collectibility OIC for an individual taxpayer? → Form 656 and Form 433-A (OIC)
20. What is the purpose of the IRS Installment Agreement? → It allows taxpayers to make smaller, manageable payments over time.
21. A Power of Attorney (Form 2848) filed with the IRS generally remains valid for how long? → Until the matter is resolved or the taxpayer revokes it
22. A Revenue Officer is assigned to a delinquent taxpayer's case. What does this generally indicate? → The case has escalated beyond ACS and requires in-person field collection
23. How does negotiating a reduced tax debt benefit taxpayers? → It reduces the amount of tax debt the taxpayer needs to pay.
24. A taxpayer placed in 'Currently Not Collectible' (CNC) status should expect the IRS to: → Review the account annually and resume collection if financial condition improves
25. What event most commonly triggers the IRS to remove a taxpayer from Currently Not Collectible status and resume active collection? → The IRS's systemic income review shows the taxpayer's income has increased significantly
26. A taxpayer's wages are subject to an IRS levy. Which exemption amount is the taxpayer entitled to retain from each paycheck? → An amount based on the standard deduction plus personal exemptions divided by pay periods
27. How does a tax lien impact a taxpayer's ability to resolve tax debt? → Tax liens can be negotiated or removed as part of debt resolution.
28. What is the significance of Form 433-A in tax resolution? → It helps determine eligibility for the Offer in Compromise program.
29. What is the purpose of tax law in tax resolution? → Tax law helps resolve disputes and ensures that tax regulations are followed.
30. During the pendency of an OIC investigation, what happens to the Collection Statute Expiration Date (CSED)? → The CSED is tolled (suspended) for the period the OIC is pending plus 30 days