/uNENROLLED

Question 1

Unenrolled return preparers cannot

Answer 1

execute closing agreements,
extend the statutory period for tax assessments or collection of tax,
execute waivers,
execute claims for refund, or
sign any document on behalf of a taxpayer.

Question 2

Collection Due Process (CDP) is available if you receive one of the following notices:

Answer 2

• Notice of Federal Tax Lien Filing and Your Right to a Hearing under IRC 6320
• Final Notice - Notice of Intent to Levy and Notice of Your Right to a Hearing
• Notice of Jeopardy Levy and Right of Appeal
• Notice of Levy on Your State Tax Refund – Notice of Your Right to a Hearing
• Post Levy Collection Due Process (CDP) Notice

Question 3

Collection Appeals Program (CAP) is available for the following actions:

Answer 3

• Before or after the IRS files a Notice of Federal Tax Lien
• Before or after the IRS levies or seizes your property
• Termination, or proposed termination, of an installment agreement
• Rejection of an installment agreement
• Modification, or proposed modification, of an installment agreement

Question 4

The tax laws provide for small tax case procedures for resolving disputes between taxpayers and the IRS.

To have your case tried as a small tax case procedure, you must qualify and choose to have small tax case procedures applied to your case and the Tax Court must agree with your choice.

Answer 4

Generally, the Tax Court will agree with your request if you qualify.

Question 5

Continuing education requirements

Answer 5

Obtain 72 hours every 3 years (based on your renewal cycle)
Obtain a minimum of 16 hours per 1 year (2 of which must be on ethics)
Use an IRS approved continuing education provider
Review the enrolled agent CE credit chart PDF
Review the Frequently asked questions

Question 6

An individual who receives initial enrollment during an enrollment cycle must complete 2 hours of CE credit for each month enrolled.

Answer 6

2 hours of CE credit for each month enrolled.

Question 7

Applies to tax preparers who understate taxpayers’ liabilities on tax returns:

Understatement due to unreasonable positions — IRC § 6694(a):  The penalty is $1,000 or 50% (whichever is greater) of the tax preparer’s income to prepare the tax return or claim

Question 8

Applies to tax preparers who understate taxpayers’ liabilities on tax returns:

   Understatement due to willful or reckless conduct — IRC § 6694 (b):

Answer 8

The penalty is $5,000 or 75% (whichever is greater) of the tax preparer’s income to prepare the tax return or claim

Question 9

Understatement of tax liability

The penalty is $1,000 ($10,000 for a corporate tax return) for helping underestimate a person’s tax liability on their tax return. We may assess this penalty only once for documents relating to the same taxpayer for a single tax period or event.

Tax law: IRC Section 6701

Question 10

Which of the following forms of evidence is Maude NOT permitted to introduce at the hearing?

a. letters

Question 11

Non-IRS powers of attorney.

The IRS will accept a non-IRS power of attorney, but a completed Form 2848 must be attached in order for the power of attorney to be entered on the Centralized Authorization File (CAF) system. For more information, see Processing a non-IRS power of attorney , later.

If you want to use a document other than Form 2848 to authorize the representation, it must contain the following information.

Answer 11

Your name and mailing address.

Your social security number (or your individual taxpayer identification number (ITIN)) and/or employer identification number.

Your employee plan number, if applicable.

The name and mailing address of your representative(s).

The types of tax involved.

The federal tax form number.

The specific year(s) or period(s) involved.

For estate tax matters, the decedent's date of death.

A clear expression of your intention concerning the scope of authority granted to your representative(s).

Your signature and date.

Question 12

You also must attach to the non-IRS power of attorney a signed and dated statement made by your representative. This statement, which is referred to as the Declaration of Representative, is contained in Part II of Form 2848. The statement should read:

Answer 12

I am not currently under suspension or disbarment from practice before the Internal Revenue Service or other practice of my profession by any other authority,

I am subject to regulations contained in Circular 230 (31 C.F.R., Subtitle A, Part 10) as amended, governing practice before the Internal Revenue Service,

I am authorized to represent the taxpayer(s) identified in the power of attorney, and

I am a (naming the capacity in which representation is undertaken, as set forth in the list of eligible representatives at Part II of Form 2848.)

Question 13

A recognized representative may substitute or delegate authority if you specifically authorize your representative to substitute or delegate representation in the original power of attorney. To make a substitution or delegation, the representative must file the following items with the IRS office(s) where the power of attorney was filed.

Answer 13

A written notice of substitution or delegation signed by the recognized representative.

A written declaration of representative made by the new representative.

A copy of the power of attorney that specifically authorizes the substitution or delegation.