Enrolled Agent Standards: Practices and Proceduress Flashcards
Chapter 1
Which of the following activities performed by a CPA on behalf of a client does not require that a written declaration of qualification and authorization be submitted to the IRS?
(Search Chapter 1)
a. corresponding with the IRS on behalf of a client in connection with a matter before the IRS
b. preparing and filing documents with the IRS on behalf of a client
c. providing written advice to a client concerning a transaction having a potential for tax avoidance
d. All professional practice engaged in by a CPA before the IRS requires that a written declaration be filed stating the CPA is qualified and authorized.
c. providing written advice to a client concerning a transaction having a potential for tax avoidance
That’s correct! An exception to the requirement to file a written declaration in order to practice before the IRS has to do with a CPA’s rendering written advice. Although such rendering of written advice is considered practice before the IRS, a CPA not currently suspended or disbarred from practice before the IRS is not required to file a written declaration before providing such advice.
Chapter 1
In addition to participating in the Annual Filing Season Program in the year that a client’s tax return was prepared, a tax return preparer who is not a CPA, enrolled agent or attorney and who is interested in representing a client before the IRS concerning a return prepared and signed by the preparer must:
(Search Chapter 1)
a. participate in the AFSP program in the year of representation
b. submit a written declaration of qualification and authority to represent the client
c. be related to the client
d. agree to represent the client without compensation
a. participate in the AFSP program in the year of representation
That’s correct! To have limited representation rights for any return or claim for refund prepared and signed after December 31, 2015, return preparers must participate in the Annual Filing Season Program in both the year of return preparation and the year of representation.
Chapter 2
- What is the minimum number of calendar days that must pass following the last date on which an enrolled agent published a schedule of fees before he or she may charge more than the rate published?
(Search Chapter 2)
a. 10 days
b. 15 days
c. 30 days
d. 45 days
c. 30 days
That’s correct! An enrolled agent is not permitted to charge more than his or her published rates for at least 30 calendar days after the last date on which the schedule of fees was published.
Chapter 2
- Jason published fee information to his clients and prospective clients. What is the minimum period he must retain copies of the communicated fee information?
(Search Chapter 2)
a. 60 days
b. 36 months
c. 1 year
d. 5 years
b. 36 months
That’s correct! Enrolled agents are expected to retain copies of communicated fee information. The copies of such communications must be retained by the enrolled agent for a period of at least 36 months after the date of their last transmission or use.
Chapter 2
- Arthur, an enrolled agent, has a conflict of interest in his representation of a new client. In order to be able to represent the new client, Arthur has telephoned each client that would be affected by his representing the new client, and each has verbally waived the conflict of interest. How soon following their verbal waiver must Arthur obtain written confirmation from each of these affected clients?
(Search Chapter 2)
a. no later than 30 days following the clients’ granting of informed consent
b. no later than 60 days following the clients’ granting of informed consent
c. no later than 90 days following the clients’ granting of informed consent
d. written confirmation is not a requirement
a. no later than 30 days following the clients’ granting of informed consent
That’s correct! Irrespective of the general prohibition against an enrolled agent’s representation of a client in the case of conflicting interests, an enrolled agent may represent the client where such representation represents a conflict of interest if: (1) the enrolled agent reasonably believes that he or she will be able to provide competent and diligent representation to each affected client; (2) the representation is not prohibited by law; and (3) each affected client waives the conflict of interest and gives informed consent, confirmed in writing by each affected client at the time the existence of the conflict of interest is known by the enrolled agent. Such written confirmation may be made within a reasonable period of time after the informed consent, but in no event later than
Chapter 2
- What must an enrolled agent do if he or she knows the client has intentionally omitted relevant information on a tax return?
(Search Chapter 2)
a. Nothing if he believes the client knows of the omission.
b. Advise the client how IRS detection of the omission can be avoided.
c. Advise the client how to minimize any possible penalties.
d. Inform the client of the omission and its consequences.
d. Inform the client of the omission and its consequences.
That’s correct! If an enrolled agent knows that a client has failed to comply with the revenue laws or has made an error in or omission from a tax return, document, affidavit, or other paper which the client submitted or executed under the U.S. revenue laws the enrolled agent must advise the client of the failure to comply and the consequences of that failure.
Chapter 3 Q1
- What is the maximum monetary penalty that may be imposed on an enrolled agent by the Office of Professional Responsibility?
(Search Chapter 3)
a. $10,000
b. An amount equal to the gross income derived from the practitioner’s conduct that gives rise to the penalty
c. No monetary penalty may be imposed.
d. No limit applies to the monetary penalty that may be imposed.
b. An amount equal to the gross income derived from the practitioner’s conduct that gives rise to the penalty
That’s correct! The amount of any penalty imposed on an enrolled agent will not exceed the gross income derived or to be derived from the practitioner’s conduct giving rise to the penalty.
Chapter 3-Q2
- Which of the following non-monetary sanctions does not affect an enrolled agent’s eligibility to represent taxpayers before the IRS?
(Search Chapter 3)
a. disbarment
b. suspension
c. censure
d. The imposition of any non-monetary sanction affects an enrolled agent’s eligibility to represent taxpayers before the IRS.
c. censure
That’s correct! Unlike disbarment or suspension, censure does not affect an individual’s eligibility to represent taxpayers before the IRS.
Chapter 3 Q3
- Which of the following is not considered to be disreputable conduct for which the Treasury Department may impose sanctions on an enrolled agent?
(Search Chapter 3)
a. dishonesty
b. breach of trust
c. a felony conviction
d. violating fee schedule rules
d. violating fee schedule rules
That’s correct! Although an enrolled agent’s violation of fee schedule rules may result in the imposition of sanctions, it is not considered to be disreputable conduct.
Chapter 3 Q4
- A public reprimand of an enrolled agent by the Office of Professional Responsibility is referred to as a:
(Search Chapter 3)
a. censure
b. suspension
c. disbarment
d. monetary penalty
a. censure
Chapter 3 Q5
- Which of the following would not necessarily be considered contemptuous conduct that is deemed disreputable under the regulations governing practice before the Internal Revenue Service?
(Search Chapter 3)
a. using abusive language
b. making false accusations
c. publishing libelous matter
d. advising a client to submit a document to the IRS that omits information
d. advising a client to submit a document to the IRS that omits information
That’s correct! A tax return preparer may not advise a client to submit a document, affidavit or other paper to the Internal Revenue Service that contains or omits information in a manner that demonstrates an intentional disregard of a rule or regulation unless the practitioner also advises the client to submit a document that evidences a good-faith challenge to the rule or regulation. However, such advice is not deemed to rise to the level of contemptuous conduct.
Test Q1
- Which of the following enjoy unlimited rights with respect to representation of taxpayers before the IRS?
(Search Chapter 1)
a. enrolled actuaries
b. enrolled agents
c. enrolled retirement plan agents
d. registered tax return preparers
b. enrolled agents
Test Q2
- Susan, an enrolled agent, routinely publishes a schedule of the fees she charges her clients. For how long must she keep copies of the published schedule following its last use?
(Search Chapter 2)
a. 1 year
b. 2 years
c. 3 years
d. 4 years
c. 3 years
Test Q3
- John, an enrolled agent, signed a tax return for his client that may result in penalties for the client. In such a case, he must advise the client of all the following EXCEPT:
(Search Chapter 2)
a. the possibility that penalties will be imposed on the client
b. any opportunity to avoid penalties that are likely to apply
c. the enrolled agent’s past success in maintaining the questionable position on the return
d. requirements applicable to the client to make adequate disclosure
c. the enrolled agent’s past success in maintaining the questionable position on the return
Test Q4
- Of what must an enrolled agent advise a client when taking an aggressive position on a federal tax return?
(Search Chapter 2)
a. the increased fee to compensate the preparer for assuming the additional reputational risk
b. possible penalties to which the client may be subject
c. the need for the client to keep the advice confidential
d. that the IRS may reject the return
b. possible penalties to which the client may be subject
