Quick Answer: Part 3 covers Representation and Procedures. Master Treasury Department Circular 230 regulations, Power of Attorney Form 2848, audits, appeals, and IRS collection options.
Sample Practice Questions
Question 1: Which form is used to register representation authorization with the CAF unit?
Answer: Form 2848. Form 8821 only authorizes information disclosure, not representation.
Answer: Form 2848. Form 8821 only authorizes information disclosure, not representation.
Question 2: Can an Enrolled Agent charge a contingent fee for preparing an original tax return?
Answer: No. Circular 230 prohibits contingent fees for preparing original returns. They are only allowed for audits, collections, or refund claims.
Answer: No. Circular 230 prohibits contingent fees for preparing original returns. They are only allowed for audits, collections, or refund claims.
Question 3: If a practitioner discovers an error in a client's prior-year return, what should they do?
Answer: The practitioner must advise the client of the error and its potential legal consequences. They are not required to notify the IRS directly.
Answer: The practitioner must advise the client of the error and its potential legal consequences. They are not required to notify the IRS directly.
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