Representation Before the IRS Flashcards
7 cards from real IRS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Representation Before the IRS flashcards as text
An enrolled agent's client refuses to correct a known error on a previously filed return that resulted in an underpayment of tax. Under Circular 230, the enrolled agent:
Answer: May continue the representation after advising the client of the consequences of non-correction
After advising the client of the error and its consequences, the practitioner may continue representing the client for other matters but cannot use the erroneous information going forward.
Which of the following statements about the Taxpayer Advocate Service (TAS) is correct regarding representation?
Answer: Any individual, including unenrolled preparers, may represent taxpayers before the TAS
The TAS allows any individual, including unenrolled return preparers, to represent taxpayers, making it more accessible than other IRS functions.
A practitioner who is a former IRS employee must comply with which of the following restrictions?
Answer: The practitioner may not represent a taxpayer in a matter the practitioner participated personally and substantially while at the IRS
Under Circular 230, former government employees are subject to 'revolving door' restrictions that prohibit representing parties in specific matters they personally and substantially participated in while employed by the IRS.
Which of the following is NOT a recognized category of individuals who may practice before the IRS under Circular 230?
Answer: Financial advisors holding the CFP designation
CFP (Certified Financial Planner) is not a recognized credential under Circular 230 that grants IRS practice rights; only enrolled agents, CPAs, attorneys, enrolled actuaries, and enrolled retirement plan agents are listed.
During an IRS collection action, an enrolled agent representing the taxpayer learns that the revenue officer plans to levy the client's bank account. What is the EA's most immediate option to protect the client?
Answer: Request a Collection Due Process (CDP) hearing if the client has not already had one
Filing a timely request for a Collection Due Process hearing under IRC §6330 will suspend the levy while the case is reviewed by the IRS Appeals Office.
Under Circular 230, a practitioner must, at a minimum, exercise which of the following standards when providing written tax advice?
Answer: Reasonable practitioner standard, considering all relevant facts and law
For written tax advice under Circular 230 §10.37, a practitioner must apply a reasonable practitioner standard, basing the advice on a reasonable analysis of the relevant facts and applicable law.
If the IRS sends a statutory notice of deficiency to a taxpayer, the taxpayer's representative must file a Tax Court petition within what time period to preserve the taxpayer's right to contest the deficiency without first paying the tax?
Answer: 90 days from the date of the notice (150 days if addressed outside the U.S.)
A taxpayer must file a petition in U.S. Tax Court within 90 days of the statutory notice of deficiency (150 days if the notice is addressed to a person outside the United States) to contest the deficiency before paying.