Part 3 Exam 2 | Med School Hub

EA Full Length Practice Test Part III – Exam 2

This is an EA full-length practice exam designed to replicate real test conditions as closely as possible.

📘 Exam Instructions

Before You Begin

Time Limit: 210 minutes (Timer will start when you click ‘Start’)
Format: 100 multiple-choice questions
Environment: Choose a quiet space with no distractions
No Resources: Close books, notes, and this guide
Answer Every Question: Even if unsure, make your best guess
Simulate Real Conditions:
- No phone
- No interruptions
- No unnecessary breaks

🧠 When You Start

Start the timer and begin with Question 1
Work steadily — do not spend too much time on one question
If a question is too difficult, skip it and return later if time allows
Stay focused and maintain a consistent pace

⏱️ After Completion

Stop immediately at 210 minutes, even if you are not finished
Do not check answers during the test
Review your answers only after completing the entire exam

1 / 100

Tags: practitioner, Prohibited, unreasonably, delaying

A. A practitioner is prohibited from “unreasonably delaying” the prompt disposition of any matter before the IRS. Which of the following is an example of a violation of this rule?

A. Requesting a 30-day extension to gather complex records for a corporate audit.

B. Advising a client to file an appeal when there is a legitimate dispute of fact.

C. Failing to answer a Revenue Agent's repeated inquiries for several weeks without a valid excuse.

D. Waiting for a client to provide records they promised to find before attending a meeting.

2 / 100

Tags: Which, following, statutory, exception

B. Which of the following is a “Non-statutory” exception to the 3-year Statute of Limitations on assessment?

A. Filing a false or fraudulent return.

B. A 25% omission of gross income.

C. Executing a Form 872 (Consent to Extend the Time to Assess Tax).

D. Failing to file a return entirely.

3 / 100

Tags: practitioner, Permanently, Enjoined, District

C. If a practitioner is “Permanently Enjoined” by a U.S. District Court from preparing tax returns, the Office of Professional Responsibility (OPR) may:

A. Allow the practitioner to continue representing clients in audits but not prepare returns.

B. Immediately initiate an "Expedited Suspension" proceeding under Circular 230.

C. Fine the practitioner $1,000 and close the case.

D. Do nothing, as the District Court is a judicial branch and OPR is an executive branch.

4 / 100

Tags: Qualified, Appraiser, rules, Charitable

D. A “Qualified Appraiser” under IRS rules for charitable contributions must NOT be:

A. The taxpayer who is claiming the deduction.

B. The donee (recipient) of the property.

C. A person related to the taxpayer (within the meaning of Section 267).

D. All of the above.

5 / 100

Tags: trust, Fund, Recovery, penalty

E. A “Trust Fund Recovery Penalty” (TFRP) is based on the “Trust Fund” portion of employment taxes, which consists of:

A. Income tax withheld from employees and the employees' share of FICA.

B. The employer's matching share of Social Security and Medicare.

C. Federal Unemployment Tax (FUTA).

D. Corporate income tax and accrued interest.

6 / 100

Tags: Which, following, Official, Record

F. Which of the following is an “Official Record” of the IRS that a taxpayer is generally entitled to receive under the Privacy Act of 1974?

A. Notes from a confidential informant.

B. The personal home address of the assigned Revenue Officer.

C. A copy of the taxpayer's own "Transcripts" (Account or Wage and Income).

D. The internal "Discriminant Function" (DIF) score used to select the return.

7 / 100

Tags: Section, practitioner, Client, privilege

G. “Section 7525” (The Tax Practitioner-Client Privilege) does NOT apply to which of the following communications?

A. Advice regarding a civil audit of a Schedule C.

B. Advice regarding a corporate tax shelter transaction.

C. Communications during a collection due process hearing.

D. Discussions regarding the taxability of a state refund.

8 / 100

Tags: file, petition, Court, taxpayer

H. To file a “Petition” with the U.S. Tax Court, a taxpayer must pay a filing fee of:

A. $30

B. $500

C. $150

D. $60

9 / 100

Tags: Enrolled, Agent, Suspended, practice

I. If an Enrolled Agent is “Suspended” from practice, they can no longer:

A. Prepare tax returns for a fee.

B. Represent taxpayers before any office of the Internal Revenue Service.

C. Use the "EA" designation on business cards or letterhead.

D. Both B and C.

10 / 100

Tags: practitioner, discovers, Client, Omission

J. A practitioner who discovers a client’s “Omission” on a return must advise the client of the consequences. Under Circular 230, the practitioner:

A. Must inform the IRS within 10 days if the client refuses to amend.

B. Is not required to notify the IRS and cannot do so without client consent.

C. Must fire the client immediately to avoid professional liability.

D. Must pay the tax for the client using a trust account.

11 / 100

Tags: Offer, compromise, application, Deemed

K. An “Offer in Compromise” (OIC) application is “Deemed Accepted” if the IRS does not make a decision within:

A. 6 months.

B. 12 months.

C. 24 months.

D. 5 years.

12 / 100

Tags: form, Power, attorney, used

L. “Form 2848” (Power of Attorney) can be used to authorize a practitioner to do all the following EXCEPT:

A. Sign a tax return under very specific and limited circumstances.

B. Execute a waiver of restriction on assessment (Form 870).

C. Endorse or negotiate a government refund check into the practitioner's account.

D. Sign a closing agreement.

13 / 100

Tags: Revenue, Officer, within, primarily

M. A “Revenue Officer” (RO) within the IRS is primarily responsible for:

A. Auditing complex corporate returns for accuracy.

B. Collecting unpaid taxes and securing unfiled tax returns.

C. Investigating criminal tax evasion and money laundering.

D. Defending the IRS in U.S. Tax Court.

14 / 100

Tags: practitioner, Signing, Preparer, gives

N. If a practitioner is not a “Signing Preparer,” but gives “Significant Advice” on a specific tax position, they are considered:

A. A "Nonsigning Preparer" subject to Preparer Penalties.

B. Exempt from all Circular 230 rules.

C. A "Clerical Assistant."

D. A "Qualified Appraiser."

15 / 100

Tags: Circular, standards, Written, Advice

O. Circular 230 standards for “Written Advice” (Section 10.37) require the practitioner to:

A. Base the advice on reasonable factual and legal assumptions.

B. Provide a 100% guarantee that the position will be sustained.

C. Only use advice that is at least 50 pages long to show "due diligence."

D. Not charge a fee for the advice to maintain objectivity.

16 / 100

Tags: taxpayer, Advocate, Service, issue

P. The “Taxpayer Advocate Service” (TAS) may issue a “Taxpayer Assistance Order” (TAO) to:

A. Change the federal tax law.

B. Release a levy or stop an action that is causing a "significant hardship."

C. Forgive all interest and penalties automatically.

D. Fire an IRS employee for negligence.

17 / 100

Tags: Direct, Solicitation, Employment, matters

Q. “Direct Solicitation” of employment in tax matters is generally prohibited if the communication is:

A. Via a general broadcast on television or radio.

B. False, fraudulent, or misleading.

C. Made to a person who has already told the practitioner they don't want to be contacted.

D. Both B and C.

18 / 100

Tags: Which, penalty, applies, taxpayer

R. Which “Penalty” applies if a taxpayer makes a “Large Corporate Underpayment” (over $100,000) of tax?

A. 20% Accuracy Penalty.

B. 75% Fraud Penalty.

C. "Hot Interest" (an increased interest rate on the underpayment).

D. A flat fee of $10,000.

19 / 100

Tags: Enrolled, Agent, Retired

S. An “Enrolled Agent” who is “Retired” may:

A. Continue to represent clients in audits.

B. Use the status "Enrolled Agent, Retired" but may not practice.

C. Never use the term "EA" again in any context.

D. Represent family members only for a fee.

20 / 100

Tags: statutory, Notice, Deficiency, required

T. A “Statutory Notice of Deficiency” is NOT required for which of the following?

A. An assessment based on a math or clerical error.

B. An assessment of a 20% accuracy-related penalty.

C. An assessment of self-employment tax.

D. An assessment of an S-Corp's income.

21 / 100

Tags: Summons, taxpayer, records, must

U. A “Summons” for a taxpayer’s records must be served:

A. Only by certified mail.

B. By calling the taxpayer on the telephone.

C. By posting it on a public government website.

D. By handing it to the person or leaving it at their last and usual place of abode.

22 / 100

Tags: Circular, practitioner, sign, return

V. Under Circular 230, a practitioner may NOT “Sign” a return that contains a position that:

A. Lacks "Substantial Authority."

B. Is disagreed with by the Revenue Agent.

C. Is not "More Likely Than Not" to succeed.

D. Is "Frivolous."

23 / 100

Tags: form, request, must, filed

W. “Form 12153” (Request for CDP) must be filed within 30 days of a “Notice of Intent to Levy.” If filed after 30 days (but within one year):

A. The taxpayer loses all rights to any hearing.

B. The taxpayer gets an "Equivalent Hearing" but no right to go to Tax Court.

C. The levy is automatically cancelled due to late processing.

D. The IRS must pay the taxpayer's attorney fees.

24 / 100

Tags: Collateral, agreement, often, used

X. A “Collateral Agreement” is often used in an Offer in Compromise to:

A. Guarantee the IRS gets a share of the taxpayer's future income if it increases.

B. Provide the taxpayer with a new car for business use.

C. Pay the Enrolled Agent's fee directly from the IRS refund.

D. Extend the statute of limitations by 20 years.

25 / 100

Tags: practitioner, must, maintain, Copies

Y. A practitioner must maintain “Copies of e-file records,” including the signed Form 8879, for how long?

A. 3 years.

B. 1 year.

C. 7 years.

D. 10 years.

26 / 100

Tags: practitioner, charged, violation, Circular

Z. If a practitioner is charged with a violation of Circular 230, they must file an “Answer” to the complaint within how many days of being served?

A. 15 days

B. 45 days

C. 30 days

D. 60 days

27 / 100

Tags: Which, following, describes, Standard

AA. Which of the following describes the “Standard of Proof” required in a disciplinary proceeding before an Administrative Law Judge (ALJ) for a practitioner’s disbarment?

A. Clear and convincing evidence.

B. Beyond a reasonable doubt.

C. Preponderance of the evidence.

D. Probable cause.

28 / 100

Tags: Authorized, file, Provider, Suspended

AB. An “Authorized e-file Provider” may be suspended from the e-file program for which of the following?

A. Having an abnormally high "reject rate" for returns.

B. Failing to provide a taxpayer with a copy of the completed return.

C. Being late on their own personal tax filings.

D. All of the above.

29 / 100

Tags: Collection, Information, statement, form

AC. A “Collection Information Statement” (Form 433-A or 433-B) is used by the IRS to:

A. Verify a taxpayer's identity for a refund.

B. Report foreign bank accounts over $10,000.

C. Evaluate a taxpayer's ability to pay a tax debt through an installment agreement or OIC.

D. Request an extension of the statute of limitations.

30 / 100

Tags: Circular, practitioner, must, unreasonably

AD. Under Circular 230, a practitioner must not “unreasonably” withhold records from the IRS. However, they may refuse to provide records if:

A. The client has not paid their bill for the current year.

B. The practitioner believes the records are protected by a valid privilege.

C. The practitioner is too busy to locate the records.

D. The Revenue Agent was unprofessional during the initial call.

31 / 100

Tags: issue, statutory, Notice, Deficiency

AE. The IRS may issue a “Statutory Notice of Deficiency” to an S-Corporation only if:

A. The S-Corporation has more than 100 shareholders.

B. S-Corporations never receive a Notice of Deficiency; only shareholders do.

C. The S-Corporation loses money in three consecutive years.

D. The S-Corporation is subject to the "Built-in Gains" (BIG) tax or "Excess Net Passive Income" tax.

32 / 100

Tags: Notice, Determination, issued, Office

AF. A “Notice of Determination” is issued by the Office of Appeals following a Collection Due Process (CDP) hearing. The taxpayer has how many days to appeal this determination to the Tax Court?

A. 30 days

B. 60 days

C. 90 days

D. 150 days

33 / 100

Tags: practitioner, Censured, Office, Professional

AG. If a practitioner is “Censured,” the Office of Professional Responsibility (OPR) may also:

A. Impose a monetary penalty on the practitioner.

B. Require the practitioner to work for the IRS for one year.

C. Publicly post the practitioner's home address.

D. Ban the practitioner's children from becoming EAs.

34 / 100

Tags: Which, following, practitioner, defined

AH. Which of the following is NOT a “Practitioner” as defined in Circular 230?

A. Enrolled Agent.

B. Certified Public Accountant.

C. Registered Tax Return Preparer (RTRP) who only prepares returns.

D. Enrolled Actuary.

35 / 100

Tags: trust, Fund, Recovery, penalty

AI. A “Trust Fund Recovery Penalty” assessment is unique because:

A. It cannot be discharged in bankruptcy.

B. It only applies to C-Corporations with assets over $10 million.

C. It is a criminal penalty that results in jail time.

D. It can be paid using the business's line of credit.

36 / 100

Tags: form, file, Signature, authorization

AJ. “Form 8879” (IRS e-file Signature Authorization) must be signed by the taxpayer:

A. After the return has been successfully accepted by the IRS.

B. Before the practitioner transmits the electronic return to the IRS.

C. Only if the taxpayer is receiving a refund.

D. Only if the taxpayer is a corporation.

37 / 100

Tags: practitioner, generally, rely, Work

AK. A practitioner may generally rely on the work product of another person (such as an employee or a contractor) if the practitioner:

A. Pays them a fair market wage.

B. Exercises reasonable care in the engagement and supervision of that person.

C. Has them sign a "hold harmless" agreement.

D. Only relies on them for clerical tasks.

38 / 100

Tags: Office, Professional, Responsibility, jurisdiction

AL. The “Office of Professional Responsibility” (OPR) has jurisdiction over which of the following?

A. Taxpayer math errors.

B. Fees charged by unlicensed preparers.

C. Conduct and competence of practitioners who practice before the IRS.

D. The selection of returns for audit.

39 / 100

Tags: Doubt, Liability, Offer, compromise

AM. “Doubt as to Liability” for an Offer in Compromise (Form 656-L) differs from other OICs because:

A. It does not require a filing fee or a down payment.

B. It requires the taxpayer to be insolvent.

C. It can only be filed by a CPA.

D. It automatically stops all collection actions for 5 years.

40 / 100

Tags: Suit, Enjoin, return, Preparer

AN. A “Suit to Enjoin” a tax return preparer (Section 7407) is filed by the U.S. government in which court?

A. U.S. Tax Court.

B. U.S. Supreme Court

C. U.S. Court of Federal Claims.

D. U.S. District Court.

41 / 100

Tags: Enrolled, Agent, Continuing, Professional

AO. An Enrolled Agent’s “Continuing Professional Education” (CPE) credits must be obtained from:

A. Any local community college.

B. The EA's own law firm.

C. An IRS-approved CE Provider.

D. YouTube videos with over 10,000 views.

42 / 100

Tags: Which, form, used, report

AP. Which “Form” is used to report a “Reportable Transaction” that may be a tax shelter?

A. Form 8886

B. Form 8275

C. Form 8300

D. Form 1099-MISC

43 / 100

Tags: practitioner, must, charge, that

AQ. A practitioner must not charge a fee that is “Unconscionable.” This is determined based on:

A. Whether the fee is higher than $500 per hour.

B. The complexity of the matter and the skill required.

C. Whether the client complained to the Better Business Bureau.

D. The practitioner's total annual income.

44 / 100

Tags: form, Employer, Quarterly, federal

AR. “Form 941” (Employer’s Quarterly Federal Tax Return) is due on which of the following dates?

A. The 15th day of every month.

B. The last day of the month following the end of the quarter.

C. April 15th of each year.

D. Within 10 days of a payroll run.

45 / 100

Tags: practitioner, PTIN, Suspended, They

AS. If a practitioner’s “PTIN” is suspended, they are prohibited from:

A. Representing any client in an audit.

B. Preparing any federal tax return for compensation.

C. Both A and B.

D. Only preparing corporate returns.

46 / 100

Tags: Jeopardy, Levy, allows, seize

AT. A “Jeopardy Levy” allows the IRS to seize property without the standard 30-day notice if:

A. The taxpayer owes more than $1 million.

B. The President of the United States signs an executive order.

C. The taxpayer is late on an installment agreement.

D. The IRS finds the taxpayer's assets are being moved out of the country.

47 / 100

Tags: Simple, trust, defined, trust

AU. A “Simple Trust” is defined as a trust that:

A. Has no more than 10 beneficiaries.

B. Is created for a child under the age of 18.

C. Only owns municipal bonds.

D. Is required to distribute all of its income currently and makes no principal distributions

48 / 100

Tags: taxpayer, Bill, Rights, taxpayer

AV. Under the “Taxpayer Bill of Rights,” a taxpayer has the right to “Retain Representation.” This means:

A. The IRS must pay for an attorney if the taxpayer cannot afford one.

B. The taxpayer can choose to have an authorized representative (like an EA) handle all interactions with the IRS.

C. The taxpayer can have their neighbor speak for them without a Form 2848.

D. The IRS can never talk to the taxpayer directly.

49 / 100

Tags: Section, penalty, understatement, Unreasonable

AW. A “Section 6694(a)” penalty for an understatement due to an “Unreasonable Position” is:

A. $1,000 or 50% of the income derived from the return.

B. $5,000 or 75% of the income derived from the return.

C. $250 flat fee.

D. $10,000 per return.

50 / 100

Tags: Enrolled, Agent, loses, their

AX. An “Enrolled Agent” who loses their license in one state to practice as a CPA:

A. Is unaffected as long as they aren't disbarred by the IRS.

B. Must notify the OPR and may face expedited suspension of their EA status.

C. Can simply move to a different state and continue practicing.

D. Must retake all three parts of the SEE exam.

51 / 100

Tags: practitioner, asked, provide, Information

AY. If a practitioner is asked by the OPR to provide information regarding a disciplinary investigation, the practitioner must:

A. Provide the information unless they believe in good faith it is privileged.

B. Only provide the information if they receive a subpoena from a District Court.

C. Refuse to provide any information to protect client confidentiality.

D. Charge the OPR a fee for the time spent gathering the data.

52 / 100

Tags: Notice, Intent, Levy, must

AZ. A “Notice of Intent to Levy” must be delivered to the taxpayer in which of the following ways?

A. In person.

B. Left at the taxpayer’s dwelling or usual place of business.

C. Sent by certified or registered mail to the taxpayer’s last known address.

D. Any of the above.

53 / 100

Tags: Which, following, Best, practice

BA. Which of the following is NOT a “Best Practice” for tax advisors under Circular 230 §10.33?

A. Establishing the facts and determining which facts are relevant.

B. Evaluating the reasonableness of any assumptions or representations.

C. Guaranteeing that the IRS will not challenge the tax position taken.

D. Communicating clearly with the client regarding the terms of the engagement.

54 / 100

Tags: Qualified, Offer, made, Administrative

BB. A “Qualified Offer” made during the administrative process can allow a taxpayer to recover “Reasonable Administrative Costs” if:

A. The IRS loses the case in court.

B. The IRS’s position was not "substantially justified."

C. The liability determined by the court is less than the amount of the Qualified Offer.

D. The taxpayer has a net worth of over $100 million.

55 / 100

Tags: Section, Preparer, disclose, return

BC. Under Section 7216, a tax preparer may disclose tax return information without the taxpayer’s consent to:

A. A local bank for a mortgage application.

B. Another employee of the same firm for the purpose of preparing the return.

C. A life insurance agent looking for new leads.

D. The taxpayer’s ex-spouse.

56 / 100

Tags: practitioner, Disbarred, They, practice

BD. If a practitioner is “Disbarred,” they may not practice before the IRS. “Practice” includes which of the following?

A. Representing a taxpayer at a conference or meeting with the IRS.

B. Corresponding or communicating with the IRS on behalf of a taxpayer.

C. Advocating for a taxpayer's position during an audit.

D. All of the above.

57 / 100

Tags: Early, Referral, program, allows

BE. The “Early Referral” program allows a taxpayer to:

A. Skip the audit and go straight to Tax Court.

B. Request that a specific unagreed issue be moved from Examination to Appeals while the rest of the audit continues.

C. Pay the tax early to stop interest from accruing.

D. Transfer their case to a different IRS district.

58 / 100

Tags: Which, Office, responsible, Centralized

BF. Which IRS office is responsible for the “Centralized Authorization File” (CAF) unit?

A. Wage and Investment (W&I) or Small Business/Self-Employed (SB/SE) divisions.

B. Office of Professional Responsibility (OPR).

C. Criminal Investigation (CI).

D. The Office of the Commissioner.

59 / 100

Tags: Decision, Court, appealed, Which

BG. A “Decision” by the U.S. Tax Court can be appealed to which higher court?

A. U.S. District Court.

B. U.S. Court of Federal Claims.

C. U.S. Court of Appeals for the applicable circuit.

D. The Taxpayer Advocate.

60 / 100

Tags: Circular, practitioner, must, sign

BH. Under Circular 230, a practitioner must not “Sign” a tax return if the practitioner knows that the return contains an “Unreasonable Position.” A position is “Unreasonable” if:

A. It lacks "Substantial Authority" and is not disclosed.

B. It is a "Tax Shelter" and it is not "More Likely Than Not" to be sustained.

C. It is "Frivolous."

D. All of the above.

61 / 100

Tags: taxpayer, request, Innocent, spouse

BI. A taxpayer may request “Innocent Spouse Relief” (Form 8857) within how many years after the IRS first begins collection activity?

A. 1 year.

B. 2 years.

C. 5 years.

D. 10 years.

62 / 100

Tags: Which, following, describes, practice

BJ. Which of the following describes “Practice before the Internal Revenue Service”?

A. Preparing a tax return for a neighbor for free.

B. Giving a speech about tax law at a university.

C. Representing a taxpayer’s interests during an IRS examination.

D. Working as a data entry clerk for a tax software company.

63 / 100

Tags: practitioner, Member, firm, They

BK. If a practitioner is a “Member” of a firm, they may be subject to disciplinary action for the conduct of another person in the firm if:

A. The practitioner is the spouse of the person who violated the rules.

B. The practitioner’s "oversight" was so negligent that it allowed the violation to occur.

C. The firm has more than 50 employees.

D. The practitioner shares an office with the person.

64 / 100

Tags: Certificate, release, federal, Lien

BL. A “Certificate of Release of Federal Tax Lien” (Form 668(Z)) is generally issued within how many days after the tax liability is satisfied?

A. 10 days.

B. 30 days.

C. 60 days.

D. 90 days.

65 / 100

Tags: Information, authorization, form, recorded

BM. A “Tax Information Authorization” (Form 8821) will NOT be recorded on the CAF system if:

A. It is for a specific one-time issue.

B. It is for a period more than 3 years in the past.

C. It is filed by an Enrolled Agent.

D. It is for a corporate taxpayer.

66 / 100

Tags: Which, following, Monetary, Sanction

BN. Which of the following is a “Monetary Sanction” that the OPR can impose on a firm?

A. Up to 100% of the gross income derived from the prohibited conduct.

B. A flat fee of $50,000.

C. 10% of the firm's annual revenue.

D. There are no monetary sanctions for firms; only for individuals.

67 / 100

Tags: Protective, claim, Refund, filed

BO. A “Protective Claim” for a refund is filed when:

A. The taxpayer is afraid of being audited.

B. The taxpayer lost their original records in a fire.

C. The taxpayer’s right to a refund is contingent on a future event (like a pending court case).

D. The taxpayer wants to stop the statute of limitations for the IRS to assess tax.

68 / 100

Tags: practitioner, represents, Client, practitioner

BP. When a practitioner represents a client before the IRS, the practitioner must “Identify” themselves and their “Authority.” This is typically done using:

A. A driver's license.

B. Form 2848 or Form 8821.

C. A letter from the client’s mother.

D. The practitioner’s social media profile.

69 / 100

Tags: Appeals, Officer, authority, settle

BQ. An “Appeals Officer” has the authority to settle a case based on:

A. The "Hazards of Litigation."

B. Whether the taxpayer is a nice person.

C. The taxpayer’s political affiliation.

D. The amount of money the IRS needs to meet its monthly quota.

70 / 100

Tags: practitioner, Publish, Schedule, fees

BR. A practitioner may “Publish” a schedule of fees. If they do, they must honor those fees for:

A. 15 days.

B. 1 year.

C. 90 days.

D. 30 days.

71 / 100

Tags: convicted, Felony, federal, State

BS. If an EA is convicted of any “Felony” under Federal or State law, the OPR may:

A. Do nothing if the felony was not tax-related.

B. Only suspend the EA if the client complains.

C. Suspend the EA immediately using an expedited proceeding.

D. Fine the EA $500.

72 / 100

Tags: taxpayer, Assistance, Centers, TACs

BT. “Taxpayer Assistance Centers” (TACs) are used by taxpayers primarily to:

A. Get face-to-face help with tax questions or account issues.

B. Sue the IRS.

C. File a petition with the Tax Court.

D. Avoid paying taxes entirely.

73 / 100

Tags: Section, practitioner, privilege, asserted

BU. Under Section 7525, the “Tax Practitioner Privilege” can be asserted in:

A. Any State court proceeding.

B. Any Federal criminal tax matter.

C. Any non-criminal tax proceeding before the IRS.

D. Any divorce proceeding.

74 / 100

Tags: practitioner, Conflict, Interest, Waiver

BV. If a practitioner’s “Conflict of Interest” waiver is oral, is it valid under Circular 230?

A. No, it must be "informed consent, confirmed in writing" within 30 days.

B. Yes, as long as a witness heard it.

C. Only if the amount of tax involved is less than $1,000.

D. Only if the practitioner is an attorney.

75 / 100

Tags: Which, form, used, apply

BW. Which “Form” is used to apply for an “Enrolled Agent” status after passing all three parts of the SEE?

A. Form 2848.

B. Form 23.

C. Form 8879.

D. Form 1040.

76 / 100

Tags: taxpayer, files, claim, Refund

BX. A taxpayer files a “Claim for Refund” (Form 1040-X) and it is formally disallowed by the IRS. How long does the taxpayer have to file a “Refund Suit” in District Court or the Court of Federal Claims?

A. 90 days from the date of disallowance.

B. There is no time limit for refund suits.

C. 3 years from the date the return was filed.

D. 2 years from the date of the "Notice of Claim Disallowance."

77 / 100

Tags: Circular, practitioner, provides, Shelter

BY. Under Circular 230, a practitioner who provides “Tax Shelter” advice must NOT rely on projections or valuations if the practitioner knows they are:

A. Produced by a computer.

B. Inconsistent with the actual facts of the transaction.

C. Over 10 pages long.

D. Provided by a licensed appraiser.

78 / 100

Tags: Which, following, Automatic, stay

BZ. Which of the following is an “Automatic” stay of collection activity?

A. Filing an Offer in Compromise.

B. Filing a request for an Installment Agreement.

C. Filing a petition in U.S. Bankruptcy Court.

D. Both A and B.

79 / 100

Tags: Enrolled, Agent, representing, Client

CA. If an Enrolled Agent is representing a client in an audit and the Revenue Agent issues a “Summons” to the client’s bank, the EA may:

A. . File a "Petition to Quash" the summons in U.S. District Court.

B. Tell the bank to ignore the summons

C. Physically block the agent from entering the bank.

D. Do nothing; banks are not protected by any laws.

80 / 100

Tags: statutory, Notice, Deficiency, letter

CB. A “Statutory Notice of Deficiency” (90-day letter) is considered “Mailed” on the date:

A. It is postmarked by the U.S. Postal Service.

B. It is printed by the IRS.

C. The taxpayer actually opens the envelope.

D. The EA receives a copy via fax.

81 / 100

Tags: Golsen, rule, Court, must

CC. Under the “Golsen Rule,” the U.S. Tax Court must follow the decisions of:

A. The U.S. Supreme Court only.

B. The Court of Appeals for the circuit in which the taxpayer resides.

C. The local District Court.

D. The Commissioner of the IRS.

82 / 100

Tags: Which, penalty, applies, practitioner

CD. Which “Penalty” applies if a practitioner “Willfully” or “Recklessly” understates a taxpayer’s liability on a return?

A. $1,000 or 50% of the income derived.

B. Permanent imprisonment.

C. $250 flat fee.

D. $5,000 or 75% of the income derived.

83 / 100

Tags: practitioner, must, Promptly, notify

CE. A practitioner must “Promptly” notify a client of any noncompliance, error, or omission. “Promptly” is generally interpreted by the OPR as:

A. Within 24 hours.

B. Within a reasonable time after the practitioner becomes aware of the error.

C. Only after the IRS notices the error.

D. At the next annual tax appointment.

84 / 100

Tags: Collateral, Attack, Assessment, Collection

CF. A “Collateral Attack” on an IRS assessment in a collection proceeding is:

A. Generally prohibited; the taxpayer cannot contest the underlying tax liability in a CDP hearing if they already had a prior opportunity to do so.

B. Encouraged by the Office of Appeals.

C. Only allowed for corporate taxpayers.

D. A type of physical security measure at IRS buildings.

85 / 100

Tags: practitioner, Suspended, practice, They

CG. If a practitioner is “Suspended” from practice, can they still be a “Partner” in a tax firm?

A. No, they must be fired immediately.

B. Yes, but they cannot perform any "Practice" before the IRS or receive fees from IRS-related work.

C. Yes, and they can continue to sign returns as long as they don't meet with agents.

D. Only if they are a CPA.

86 / 100

Tags: Closing, agreement, form

CH. A “Closing Agreement” (Form 866 or 906) is:

A. A temporary arrangement to pay tax.

B. A letter from the taxpayer saying they are closing their business

C. . A final and conclusive agreement between the IRS and a taxpayer that cannot be reopened except for fraud.

D. An agreement to close a bank account.

87 / 100

Tags: Anti, Injunction, generally, prohibits

CI. The “Anti-Injunction Act” generally prohibits:

A. Taxpayers from suing to stop the assessment or collection of any tax.

B. The IRS from seizing property.

C. Practitioners from charging contingent fees.

D. The Tax Court from hearing cases.

88 / 100

Tags: Enrolled, Agent, Good, Standing

CJ. An Enrolled Agent who is “Not in Good Standing” with the IRS due to failure to complete CPE:

A. Loses their PTIN permanently.

B. Is reported to the local police.

C. Must pay a fine of $10,000.

D. Is placed on "Inactive" status and cannot practice until the deficiency is corrected.

89 / 100

Tags: Circular, applies, Which, following

CK. “Circular 230” applies to which of the following acts?

A. Preparing a state income tax return.

B. Representing a taxpayer before the IRS regarding a federal tax matter.

C. Preparing a client's financial statements for a bank loan.

D. Giving investment advice regarding the stock market.

90 / 100

Tags: Which, Division, handles, audits

CL. Which IRS “Division” handles audits for individuals with only wage income?

A. Wage and Investment (W&I).

B. Large Business and International (LB&I).

C. Small Business/Self-Employed (SB/SE).

D. Tax Exempt and Government Entities (TE/GE).

91 / 100

Tags: Qualified, Appraiser, must, include

CM. A “Qualified Appraiser” must include their “Taxpayer Identification Number” (TIN) on any appraisal summary submitted to the IRS.

A. True.

B. False.

C. Only if the appraisal is for a car.

D. Only if the appraiser is also an EA.

92 / 100

Tags: practitioner, discovers, that, Client

CN. If a practitioner discovers that a client has “lied” to an IRS agent during an audit, the practitioner should:

A. Lie as well to stay consistent.

B. Advise the client of the consequences and consider withdrawing from the representation.

C. Report the client to the FBI immediately.

D. Do nothing; it is the agent's job to find the truth.

93 / 100

Tags: Void, Installment, agreement

CO. The IRS may “Void” an Installment Agreement if:

A. The taxpayer provides inaccurate information on Form 433-A.

B. The taxpayer fails to pay a current tax liability.

C. The taxpayer fails to file a subsequent tax return.

D. All of the above.

94 / 100

Tags: Freedom, Information, FOIA, required

CP. Under the “Freedom of Information Act” (FOIA), the IRS is NOT required to disclose:

A. Its internal "Audit Guidelines."

B. The name of the IRS Commissioner.

C. Individual tax returns of other taxpayers.

D. The location of the local IRS office.

95 / 100

Tags: Certificate, Nonattachment, federal, Lien

CQ. A “Certificate of Nonattachment” of a Federal Tax Lien is issued when:

A. The tax has been paid in full.

B. The lien was filed against a person with the same name as the taxpayer, but who is not the actual debtor.

C. The taxpayer is bankrupt.

D. The statute of limitations has expired.

96 / 100

Tags: Registered, return, Preparer, RTRP

CR. A “Registered Tax Return Preparer” (RTRP) who is NOT an EA, CPA, or Attorney has “Limited Practice Rights,” meaning they can:

A. Only represent a client in an audit if they signed the return under audit.

B. Represent any client in any audit.

C. Represent clients in Tax Court.

D. Represent clients in collection matters.

97 / 100

Tags: practitioner, Disbarred, They, apply

CS. If a practitioner is “Disbarred,” they may apply for “Reinstatement” after how many years?

A. 1 year.

B. 3 years.

C. 5 years.

D. Never.

98 / 100

Tags: Court, federal, claims, jurisdiction

CT. The “U.S. Court of Federal Claims” has jurisdiction over:

A. Deficiency cases where the tax has not been paid.

B. Refund suits where the tax has already been paid in full.

C. Criminal tax evasion cases.

D. Divorces involving tax issues.

99 / 100

Tags: practitioner, Self, Corrects, violation

CU. A practitioner who “Self-Corrects” a violation of Circular 230 before being contacted by the OPR:

A. Is exempt from all penalties.

B. Is still treated the same as if they hadn't corrected it.

C. May receive "significant weight" in their favor during a disciplinary review.

D. Must pay double the normal fine.

100 / 100

Tags: Enrolled, Agent, status, federal

CV. “Enrolled Agent” status is a “Federal” designation. Does a state have the power to “disbar” an EA from IRS practice?

A. Yes, if the EA lives in that state.

B. Only if the EA is also a plumber.

C. Only if the state has a high income tax.

D. No, only the U.S. Treasury Department can regulate practice before the IRS.

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