Enrolled Agent Prt 3 (3 Of 4) Questions And Answers 100% Pass

ENROLLED AGENT PRT 3 (3 OF 4) QUESTIONS AND ANSWERS 100% PASS According to Circular 230, what is a conflict of interest? - Representation of a client that is materially limited by the tax professional's responsibilities to other clients is a conflict of interest. See Circular 230 §10.29. A tax professional may represent clients even in the presence of a conflict of interest. What type of informed consent must be obtained from the affected clients in this situation? - A written waiver of the conflict of interest, signed by the affected clients, is required. A copy of the waiver must be retained by the tax professional for at least 36 months from the date of the conclusion of the representation and be provided to the IRS upon request. See Circular 230 §10.29. Based on Circular 230, when may the IRS suspend a tax professional? - The IRS can suspend a tax professional for incompetence. Circular 230 does not cover alcoholism, clinical depression, or personal bankruptcy. A tax practitioner may represent a client, even in the presence of a 2 | P a g e Emily Charlene © 2025, All Rights Reserved. conflict of interest, by obtaining an informed signed consent to a waiver of the conflict. The waiver must be: - A tax practitioner who represents a client in the presence of a conflict of interest must obtain an informed signed consent to a waiver of the conflict, retain the waiver for at least 36 months from the date the representation concludes, and provide it to the IRS upon request. Is it a conflict of interest when, on April 9 (close to the end of the filing season), an EA delays return preparation for existing clients and devotes the entire week to a new client's audit.? - Yes, it is a conflict of interest. When researching tax issues, a tax professional will want to consider: - When researching tax issues, a tax professional should consider all of the listed resources, IRS regulations, court cases, and revenue rulings. What reference is the first resource to determine whether the IRS has announced an opinion on a Tax Court decision? - If the IRS decides to announce its opinion (acquiescence or nonacquiescence) of a Tax Court decision, it issues the original announcement in the Internal Revenue Bulletin. What is secondary authority? - Secondary authority explains or summarizes the law, but does not have the force of law. Revenue rulings are secondary authority. What is primary authority? - Primary authority is the actual law. Court decisions are one example. 3 | P a g e Emily Charlene © 2025, All Rights Reserved. What is the purpose of Form 8821? - Form 8821 is used to authorize an unenrolled paid preparer, or other named individual, to inspect and receive a taxpayer's information. Form 2848 cannot be used for this purpose. A tax professional may use a client's tax return information without written consent, if it is not adverse to the client and the client has not expressly prohibited it, when: - A tax professional may use a client's tax return information without written consent to prepare the tax return of the client's married daughter, if it is not adverse to the client and the client has not expressly prohibited it. A taxpayer must complete and sign a power of attorney to authorize: - A taxpayer must use a power of attorney to authorize an individual to represent the taxpayer at a conference with the IRS. A Centralized Authorization File (CAF) number is used: - The purpose of the Centralized Authorization File (CAF) number is to allow the IRS to efficiently verify