EA Part - 3

Domain 1: Practices and Procedures 26 Questions 1.1. Practice before the IRS 

22.1. What constitutes practice before the IRS 

22.2. Categories of individuals who may practice and extent of practice privileges 

Requirements for Enrolled Agents 

23.1. Information to be furnished to the IRS -Omission or error on return, document, or affidavit 

23.2. Rules for employing or accepting assistance from former IRS employees or disbarred/suspended persons 

23.3. Rules for restrictions on advertising, solicitation and fee information 

23.4. Rules regarding fees (e.g., contingent, unconscionable) 

23.5. Due diligence requirements 

23.6. Conflict of interest 

23.7. Rules for refund check negotiation 

23.8. Standards for written advice, covered opinions, tax return positions and preparing returns 

23.9. Continuing education requirements 

23.10. Enrollment cycle and renewal 

23.11. Rules for prompt disposition of matters before the IRS 

23.12. Rules for returning a client's records and documents 

23.13. PTIN requirements 

23.14. 1Practitioner supervisory responsibilities 

Sanctionable acts 

24.1. Incompetence and disreputable conduct 

24.2. Sanctions imposed by the Office of Professional Responsibility 

24.3. Frivolous submissions (returns and documents) 

24.4. Fraudulent transactions (e.g., badges of fraud) 

Rules and penalties -Assessment and appeal procedures for preparer penalties 

25.1. Types of penalties (e.g., negligence, substantial understatement, overvaluation) 

25.2. Furnishing a copy of a return to a taxpayer 

25.3. Signing returns and furnishing identifying numbers 

25.4. Keeping copies or lists of returns prepared 

25.5. Employees engaged or employed during a return period (e.g., IRC section 6060) 

25.6. Preparer due diligence penalties 

Domain 2: Representation before the IRS 25 Questions 2.1. Power of attorney 

26.1. Purpose of power of attorney 

26.2. Signature authority (e.g., extension of assessment period, closing agreement) 

26.3. Authority granted by taxpayer 

26.4. Limitations on signing tax returns on behalf of taxpayer 

26.5. Proper completion of power of attorney (Form 2848) 

26.6. Alternate forms of power of attorney (durable) 

26.7. Rules for client privacy and consent to disclose 

26.8. Distinctions between power of attorney (Form 2848) and tax information authorization (Form 8821) 

26.9. Requirements to be met when changing or dropping representatives or withdrawal of representative 

26.10. Purpose of a Centralized Authorization File (CAF) number 

26.11. Conference and practice requirements (Publication 216) 

Building the taxpayer’s case-Preliminary work 

27.1. Identification of tax issue(s) with supporting details 

27.2. Potential for criminal aspects 

27.3. Competence, expertise, and time to handle issue 

27.4. Conflict of interest in regards to representation 

27.5. Transcripts from IRS (e.g., access to and use of e-services) 

Taxpayer financial situation 

28.1. Taxpayer's ability to pay the tax (e.g., installment agreements, offer in compromise, currently not collectible) 

28.2. General financial health (e.g., bankruptcy, lawsuits, garnishments, cash flow, assets, and insolvency) 

28.3. Third-party research (e.g., property assessment for taxes, asset values, state and local tax information) 

28.4. Discharge of the tax liability in bankruptcy 

28.5. IRS Collection Financial Standards 

Supporting documentation 

29.1. Financial documents and expense records (e.g., cancelled checks or equivalent, bank statements, credit card statements, receipts, brokerage records) 

29.2. Legal documents (e.g., birth certificate, divorce decrees, lawsuit settlements) 

29.3. Prior and subsequent tax returns 

29.4. Other substantive and contemporaneous documentation (e.g., corporate minutes) 

29.5. Business entity supporting documents (e.g., partnership agreement, corporate bylaws) 

Legal authority and references -Internal Revenue Code and income tax regulations 

30.1. Revenue rulings and revenue procedures 

30.2. Case law -IRS forms, instructions, and publications 

30.3. Private letter ruling 

30.4. Internal Revenue Manual 

30.5. Authoritative versus non-authoritative source material 

30.6. Tax treaties 2.6. Related issues 

30.7. Statute of limitations 

30.8. Post-filing correspondence (e.g., math error notices, under-reporting notices) 

30.9. Deadlines and timeliness requirements 

30.10 Third-party correspondence (e.g., witness communications, employment records) 

30.11. Freedom of Information Act (FOIA) requests 

30.12. Tax avoidance vs tax evasion 

30.13. Tax return disclosure statements 

30.14. Taxpayer Advocate Service (e.g., criteria for requesting assistance) 

30.15. Taxpayer identity Theft -Judicial levels of representation beyond the scope of EA representation ..

Specific Areas of Representation 20 Questions, Representing a taxpayer in the collection process 

31.1. Extension of time to pay (e.g., Form 1127) -Installment agreements 

31.2. Offer in compromise 

31.3. Collection appeals program (e.g., denial of installment agreements, discharge applications) 

31.4. Collection appeals and due process (e.g., lien, levy, and Form 12153) 

31.5. Adjustments to the taxpayer’s account (e.g., abatements and refund offsets) 

31.6. Requesting an audit reconsideration (e.g., documents and forms) 

31.7. Representing a decedent 

31.8. Collection notice and Notice of Federal Tax Lien 

31.9. Levy and seizure of taxpayer's property 

31.10. Currently Not Collectible (e.g., reasons and reactivation) 

31.11. IRS Collection Summons (e.g., purposes) 

31.12. Collections statute of limitations 

31.13. Trust fund recovery penalty 

31.14. Amended returns and claims for refund (e.g., Form 1040X, Form 843, effect on statute of limitations) 

31.15. Passport revocation 

Penalties and/or interest abatement 

32.1. Penalties subject to abatement 

32.2. Basis for having penalties abated or refunded 

32.3. Basis for having interest abated or refunded 

32.4. Interest recalculation 

32.5. Procedures for requesting abatement 

Representing a taxpayer in audits/examinations 

33.1. IRS authority to investigate 

33.2. Limited practitioner privilege (e.g., IRC section 7525) 

33.3. Verification and substantiation of entries on the return 

33.4. IRS authority to fix time and place of investigation 

33.5. Steps in the process (e.g., initial meeting, submission of IRS requested information) 

33.6. Interpretation and analysis of revenue agent report (RAR) (e.g., 30-day letter) 

33.7. Interpretation and analysis of CP-2000 notice and correspondence audits 

33.8. Explanations of taxpayer options (e.g., agree or appeal) 

33.9. Taxpayer’s burden of proof 3.4. Representing a taxpayer before appeals 

33.10. -Right to appeal Revenue Agent findings 

33.11. Request for appeals consideration (e.g., preparation, elements contained) 

33.12. Enrolled Agent appearance at appeals conference 

33.13. Settlement function of the appeals process 

33.14. Issuance of 90-day letter Domain 

Filing Process 14 Questions. Accuracy 

34.1. Reliance on software (e.g., review of results) 

34.2. Miscalculations and recognition of duplicate entries 

Record maintenance 

35.1. Length of time to retain returns and records 

35.2. Data security (e.g., electronic, systems, paper) 

Electronic filing 

36.1. Application process to be an e-file provider (e.g., e-services, EFIN) 

36.2. E-file mandate and exceptions (Form 8948) 

36.3. Advertising standards 

36.4. Definition and responsibilities of an ERO 

36.5. Levels of infractions 

36.6. Compliance requirements to continue in program 

36.7. EFIN revocation appeal process 

36.8. E-file authorization and supporting documentation (e.g., Form 8879 and Form 8453) 

36.9. Rejected returns and resolution (e.g., client notification, IP PIN)