IRS Representation Before the IRS 2

Question 1

Which of the following individuals is NOT eligible to represent a taxpayer before the IRS as an enrolled agent?

Accepted Answer

An attorney admitted to practice before the U.S. Tax Court only

Answer

A CPA licensed in all 50 states

Answer

An individual who passed all three parts of the Special Enrollment Examination

Answer

A former IRS employee granted enrollment based on technical experience

Question 2

A power of attorney filed with the IRS on Form 2848 authorizes a representative to do all of the following EXCEPT:

Accepted Answer

Sign the taxpayer's original tax return

Answer

Receive and inspect confidential tax information

Answer

Sign a consent to extend the statute of limitations

Answer

Execute a closing agreement on behalf of the taxpayer

Question 3

Under Circular 230, a practitioner who discovers that a client made an error on a prior year return must:

Accepted Answer

Promptly advise the client of the error and the potential consequences

Answer

Immediately notify the IRS of the error without client consent

Answer

Withdraw from representation if the client refuses to correct the error

Answer

File an amended return on behalf of the client without further discussion

Question 4

When may a suspended enrolled agent represent a taxpayer before the IRS?

Accepted Answer

Never — suspended practitioners have no representation rights

Answer

Only for matters involving tax years before the suspension

Answer

Only with written consent from the Office of Professional Responsibility

Answer

Only as an unpaid volunteer through a Low Income Taxpayer Clinic

Question 5

A taxpayer wants to authorize their enrolled agent to receive their tax refund check. Which additional form must be filed with the IRS?

Accepted Answer

Form 2848 with the specific authority noted

Answer

Form 8821

Answer

Form 1310

Answer

Form 8879

Question 6

Which of the following best describes the scope of representation permitted by a Form 8821 Tax Information Authorization?

Accepted Answer

Authority to receive and inspect confidential tax information only

Answer

Full unlimited representation before the IRS including signing documents

Answer

Authority to represent the taxpayer in Tax Court proceedings

Answer

Authority to negotiate installment agreements on behalf of the taxpayer

Question 7

Under Circular 230, which of the following is a practitioner required to do when a client provides information the practitioner knows to be false?

Accepted Answer

Refuse to use the information and advise the client accordingly

Answer

Submit the information but attach a disclosure statement

Answer

Correct the information without notifying the client

Answer

Withdraw from the engagement after notifying the client of the conflict