P-2 (Practice before the IRS) Flashcards
What is the highest credential issued by the IRS (technically, the United States Department of Treasury)?
The Enrolled Agent designation
EA’s, CPA’s and Attorneys are the only tax professionals with unlimited representation rights, what does this mean?
Unlimited representation rights means that they can represent any client on any matter before the IRS. This is true even if the EA did not prepare the return.
Besides tax preparation, what are three other services an Enrolled Agent can provide for a fee?
Enrolled agents can charge a fee for:
1. Tax advice,
2. Helping taxpayers navigate audits,
3. Request payment agreements with the IRS,
4. Settle tax debts and various collection issues, and
5. Handle taxpayer appeals.
What are three IRS divisions?
Three IRS divisions include:
1. Examinations
2. Collections
3. Office of Appeals
What can an Enrolled Agent do within the IRS examination division?
An Enrolled Agent can
1. Represent the taxpayer before the IRS
2. Correspond and communicate with the IRS
3. Represent a taxpayer at conferences, hearings, or meetings with the IRS.
What can an Enrolled Agent do within the IRS collections division?
An Enrolled agent can perform:
1. Offers in compromise - offer to pay less
2. Execute installment agreements (payment plan) on behalf of a client
3. Extending the collection period
4. Abatements, releasing liens, preventing a levy (seizure of property)
What can an Enrolled Agent do within the IRS Office of appeals?
- Collections due process (CDP)
- Collection Appeals Program (CAP)
What type of revenue employee can an unenrolled preparer with AFSP Record of completion represent a taxpayer before?
An unenrolled agent with the AFSP record of completion can represent an individual before a Revenue Agent.
Are state officers or employees automatically qualified to practice before the IRS?
No,
State officers or employees who deal with tax matters for the state may not practice before the IRS if such employment may disclose facts or information applicable to Federal tax matters.
What are unenrolled tax return preparers limited to doing?
Unenrolled tax return preparers are limited to preparing and signing tax returns, claims for refund, and other documents for submission to the IRS.
If an IRS examiner believes that a practitioner filed a return that contains a frivolous position, to whom does he report?
He reports it to the office of financial responsibility.
Which document should a practitioner with principal authority over a firm’s practice consult to maintain compliance with tax regulations?
If a tax practitioner has principal authority over a firm’s preparation of tax returns or other documents to the IRS, that practitioner must take reasonable steps to ensure the firm’s compliance with rules and regulations contained in Circular 230.
A tax return for a child who cannot sign the tax return for themselves should be signed by who?
It should be signed by either parent.
What does circular 230 contain?
Circular 230 contains regulations governing the practice of Attorney, Certified public accountants, Enrolled Agents, Enrolled Actuaries, Enrolled Retirement Plan Agents, and Appraisers before the Internal Revenue Service.
Describe an unenrolled preparer in detail?
An unenrolled return preparer is an individual other than an attorney, CPA, enrolled agent, enrolled retirement plan agent, or enrolled actuary who prepares and signs a taxpayer’s return as the preparer, or who prepares a return but is not required (by the instructions to the return or regulations) to sign the return.
What is form 2848?
Form 2848 is the Power of Attorney and Declaration of Representative
