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SEE 3 · Representation, Practices and Procedures

Circular 230, representation, collection, exams, appeals and e-file. 100 multiple choice questions in 3.5 hours.

1. Practices and Procedures

Circular 230 duties and sanctions

Who may practice, enrollment and CE, duties to the IRS and clients, fees and advertising, conflicts, written advice, OPR discipline.

Example. A practitioner must return client records on request, even in a fee dispute; unpaid work product may be held only if state law allows.

Penalties

Taxpayer accuracy, fraud and filing penalties; preparer penalties under §§6694 and 6695; due diligence for credits on Form 8867.

Example. For returns filed in 2026, the §6695(g) due diligence penalty is $650 per failure.

2. Representation before the IRS

Authorizations and privacy

Form 2848 represents; Form 8821 only receives information; the CAF; §7216 consents; withdrawal and Publication 216.

Example. To speak for a client at an exam, file Form 2848; Form 8821 is not enough.

Building the case

Transcripts, documents, ability to pay, legal authority, statutes of limitations, notices, FOIA, TAS and identity theft.

Example. The IRS generally has 3 years after filing to assess, and the taxpayer 3 years from filing or 2 from payment to claim a refund.

3. Specific Areas of Representation

Collection

Extensions, installment agreements, offers, CNC, liens, levies, CDP and CAP, the TFRP, decedents and passports.

Example. A CDP hearing request on Form 12153 is due within 30 days of the final notice of intent to levy.

Exams, penalties relief and appeals

First-time abatement, reasonable cause, interest abatement, the exam process, §7525, burden of proof, Appeals and the 90-day letter.

Example. An offer in compromise not rejected within 24 months is deemed accepted.

4. Filing Process

Accuracy, records and e-file

Reviewing software results, record retention, data security under the FTC Safeguards Rule, the e-file mandate, EROs, signatures and rejects.

Example. Paid preparers expecting to file 11 or more individual returns must e-file, unless the client chooses paper and Form 8948 is attached.

Chapters

  1. Practice before the IRS: who may represent. What practice is; attorneys, CPAs and EAs; actuaries and retirement plan agents; the AFSP and unenrolled preparers; family, officers, employees and fiduciaries; what is not practice
  2. Becoming and staying an enrolled agent. The SEE and Form 23; suitability and tax compliance; the renewal cycle and Form 8554; continuing education; the PTIN; inactive and terminated status
  3. Duties to the IRS and to clients. Answering IRS requests; a client's omission or error; prompt disposition; returning client records; refund checks
  4. Fees, advertising and the people you work with. Unconscionable and contingent fees; advertising and solicitation; fee information; former IRS employees; disbarred and suspended persons; supervising the firm
  5. Due diligence, competence and conflicts of interest. Diligence as to accuracy; relying on others; competence; conflicts and written consent; best practices
  6. Written advice and tax return positions. Section 10.37 written advice; standards for return positions; reasonable basis, substantial authority and more likely than not; disclosure on Form 8275; advising on penalties
  7. Sanctionable conduct and the Office of Professional Responsibility. Incompetence and disreputable conduct; badges of fraud; censure, suspension, disbarment and monetary penalties; complaints, hearings and appeals; reinstatement
  8. Frivolous submissions, fraud and taxpayer penalties. Frivolous returns and submissions; tax avoidance and evasion; negligence, substantial understatement and valuation penalties; fraud penalty; failure to file and pay
  9. Preparer penalties, signatures and records. Who is a preparer; section 6694; section 6695 copies, signatures, PTINs and lists; section 6060 records; aiding and abetting; assessment and appeal of preparer penalties
  10. Due diligence for refundable credits and head of household. Form 8867; knowledge, completion, computation and retention; the $650 penalty; firm liability; the EIC, CTC, AOTC and HOH questions
  11. Power of attorney: Form 2848. Why a power of attorney; acts a representative may perform; signing returns for a client; completing Form 2848; durable and other powers of attorney; online submission
  12. Form 8821, the CAF, privacy and changing representatives. Tax information authorizations; the CAF number; section 7216 consents; revoking and withdrawing; conference and practice requirements
  13. Building the case: issues, risks and documents. Spotting the issue; criminal warning signs; competence and time; conflicts; transcripts and e-Services; financial, legal and entity documents
  14. The taxpayer's finances and ability to pay. Collection information statements; Collection Financial Standards; assets, equity and income; third-party research; insolvency; discharge of tax in bankruptcy
  15. Legal authority and tax research. The Code and regulations; revenue rulings and procedures; case law; forms and publications; private letter rulings; the IRM; treaties; authority that counts; avoidance and evasion
  16. Statutes of limitations and deadlines. Assessment, refund and collection statutes; extending the statute; timely mailing and e-filing; weekends and holidays; disclosure statements
  17. IRS notices, third parties, FOIA, the Advocate and identity theft. Math error and CP2000 notices; third-party contacts and records; Freedom of Information Act requests; the Taxpayer Advocate Service and Form 911; identity theft and the IP PIN
  18. Paying over time: installment agreements, offers and CNC. Extensions to pay and Form 1127; short-term and long-term plans; guaranteed and simple agreements; offers in compromise; currently not collectible
  19. Liens, levies, summonses and collection appeals. Notices and the lien; release, withdrawal, discharge and subordination; levy and seizure; the summons; CDP hearings and Form 12153; CAP; the collection statute; passports
  20. Trust fund penalty, decedents, account fixes and refund claims. The trust fund recovery penalty; representing an estate; abatements and offsets; audit reconsideration; amended returns and Forms 1040-X and 843
  21. Penalty and interest relief. Which penalties can be removed; first-time abatement; reasonable cause; statutory exceptions; interest abatement; recomputing interest; how to ask
  22. Representing a taxpayer in an examination. Authority to examine; the practitioner privilege; substantiation; time and place; steps in an audit; the RAR and 30-day letter; CP2000; options; burden of proof
  23. Appeals, the 90-day letter and the courts. The right to appeal; protests and small case requests; the conference; settlement; the notice of deficiency; Tax Court, district court and the Court of Federal Claims
  24. Accuracy, records and data security. Reviewing software results; spotting miscalculations and duplicates; how long to keep records; safeguarding data; the written information security plan; reporting a breach
  25. The IRS e-file program. Applying and the EFIN; the e-file mandate and Form 8948; advertising; EROs; infractions and sanctions; staying in the program; appeals; Forms 8879 and 8453; rejected returns
  26. IRS forms workshop. Forms 23, 8554, 2848, 8821, 56, 8867, 8275, 843, 911, 9465, 433-A, 433-F, 656, 12153, 9423, 1127, 1040-X, 8857, 14039, 4506-T, 8879, 8948, 12203, 4810, 5495 and 1310