Circular 230 is the single most important document for EA Exam Part 3 (Representation, Practices & Procedures). Nearly one-third of the exam is dedicated to verifying that Enrolled Agents understand their ethical obligations, boundaries of practice, and the disciplinary processes administered by the Office of Professional Responsibility (OPR).
IRS Publication / Regulation Guide
IRS Circular 230: Rules Governing IRS Practice for EA Exam Part 3
HS
Written By
Hiren Soni, CA
TN
Fact-Checked By
Tom Norton, CPA, EA
Last Updated
July 10, 2026
Tax Law Compliance
IRS SEE 2025/2026 Rules
At a Glance: Quick Summary
Quick Answer:
Treasury Department Circular 230 contains the regulations governing the practice of attorneys, CPAs, Enrolled Agents, enrolled actuaries, and appraisers before the Internal Revenue Service.
Tax Definition:
Circular 230 sets forth the duties and restrictions relating to practice before the IRS, the rules of conduct, and sanctions for violations of these regulations.
Key Takeaways:
- Filing of Documents: A practitioner must not delay the prompt disposition of any matter before the IRS.
- Conflict of Interest: A practitioner cannot represent a client before the IRS if it involves a conflict of interest, unless written consent is obtained.
- Due Diligence: Required as to accuracy in preparing tax returns and documents filed with the IRS.
- Sanctions: Disbarment, suspension, censure, or monetary penalties can be imposed for willful violations.
Key Statistics & Parameters
33% of Exam
Part 3 Exam Weight
31 CFR Part 10
Regulatory Code
Subpart B (Duties), Subpart C (Sanctions)
Key Sections
2 Hours annually for renewal
Ethics Credits Required
Tax Limits & Comparison
| Circular 230 Section | Topic | Key Requirement |
|---|---|---|
| Section 10.20 | Information to be Furnished | Must submit records requested by IRS unless privileged |
| Section 10.21 | Knowledge of Client Error | Must advise client of error and legal consequences |
| Section 10.22 | Diligence as to Accuracy | Must exercise due diligence in preparing returns |
| Section 10.27 | Fees | Contingent fees prohibited for tax preparation |
Frequently Asked Questions
Violations can result in disciplinary action by the IRS Office of Professional Responsibility (OPR), including censure, suspension from practice before the IRS, disbarment, or monetary penalties.
A practitioner cannot charge a contingent fee for preparing an original tax return. Contingent fees are allowed only in connection with an IRS examination, an amended return, or judicial proceedings.
Official IRS References & Citations
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