Enrolled Agent EA Exam Part 3
Questions with 100% Correct Answers
Form 8867 - ✔✔Paid Preparer's Due Diligence Checklist. Includes new questions
for both the Head of Household filing status and the new Credit for Other
Dependents. Retroactive! (for HoH anyways)
Penalty for failure to meet due diligence requirements - ✔✔$520 per failure
New Requirements for Child Tax Credit/Additional Child Tax Credit - ✔✔Child
must have SSN (ITIN or ATIN works for ODC)
Time to file claim for wrongful levy or seizure - ✔✔two years
Passport Revocation - ✔✔The IRS has to notify the US dept. of state of
taxpayers who owe a seriously delinquent tax debt. They can then revoke or
deny passport. The threshold for 2018 is $52,000
Centralized Audit Regime - ✔✔Mandatory for partnerships above 100 partners.
(100 or fewer can elect out of this new regime). If anything is adjusted, it is
assessed and collected at the partnership level (instead of going after individual
partners)
Title 26 - ✔✔Internal Revenue Code - main body of tax law of the United States
Title 31 - ✔✔FinCEN and FBAR - International financial reporting laws
Page 1 of 23
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
,Primary Authority - ✔✔the law itself, Internal Revenue Code
Substantial Authority - ✔✔Can serve as basis for interpretation of current tax
law and to establish precedents for the future.
1. Treasury Regulations
2. Revenue Rulings
3. Revenue Procedures
4. Private Letter Rulings
5. Technical Advice Memoranda (TAMS)
6. IRS Notices
Treasury Regulations - ✔✔The official interpretation of a statutory tax rule
written and published by the U.S. Treasury. Published in the Federal Register.
Types of Treasury Regulations - ✔✔1. Legislative Regulations
2. Interpretive Regulations
3. Procedural Regulations
Who is bound by IRS regulations? - ✔✔The IRS (the courts are not)
Classification of Treasury Regulations - ✔✔Proposed
Temporary
Final
Page 2 of 23
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
, Revenue Rulings and Revenue Procedures - ✔✔Can be used by taxpayers as
guidance to avoid certain accuracy related penalties
Technical Advice Memoranda (TAMs) - ✔✔TAMs are issued by the IRS in
response to questions raised by IRS field personnel during audits. They deal
with completed rather than proposed transactions and are often requested for
questions related to exempt organizations and employee plans.
Private Letter Ruling (PLR) - ✔✔The IRS's written response to a taxpayer's
inquiry as to how the tax law applies to a proposed transaction. $$$$
Internal Revenue Manual (IRM) - ✔✔Policies, procedures and guidelines
governing the operations and organization of the IRS. Used by IRS employees
IRS publications and forms.... - ✔✔are not considered substantial authority!
IRS Divisions - ✔✔1. Large Business & International Division
2. Small Business and Self-Employed Division
3. Wage and Investment Division
4. Tax Exempt and Government Entities Division
Taxpayer Advocate Service - ✔✔Independent organization within IRS who can
help resolve problems. Can call or use Form 911. Taxpayer has to be in
Page 3 of 23
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
Questions with 100% Correct Answers
Form 8867 - ✔✔Paid Preparer's Due Diligence Checklist. Includes new questions
for both the Head of Household filing status and the new Credit for Other
Dependents. Retroactive! (for HoH anyways)
Penalty for failure to meet due diligence requirements - ✔✔$520 per failure
New Requirements for Child Tax Credit/Additional Child Tax Credit - ✔✔Child
must have SSN (ITIN or ATIN works for ODC)
Time to file claim for wrongful levy or seizure - ✔✔two years
Passport Revocation - ✔✔The IRS has to notify the US dept. of state of
taxpayers who owe a seriously delinquent tax debt. They can then revoke or
deny passport. The threshold for 2018 is $52,000
Centralized Audit Regime - ✔✔Mandatory for partnerships above 100 partners.
(100 or fewer can elect out of this new regime). If anything is adjusted, it is
assessed and collected at the partnership level (instead of going after individual
partners)
Title 26 - ✔✔Internal Revenue Code - main body of tax law of the United States
Title 31 - ✔✔FinCEN and FBAR - International financial reporting laws
Page 1 of 23
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
,Primary Authority - ✔✔the law itself, Internal Revenue Code
Substantial Authority - ✔✔Can serve as basis for interpretation of current tax
law and to establish precedents for the future.
1. Treasury Regulations
2. Revenue Rulings
3. Revenue Procedures
4. Private Letter Rulings
5. Technical Advice Memoranda (TAMS)
6. IRS Notices
Treasury Regulations - ✔✔The official interpretation of a statutory tax rule
written and published by the U.S. Treasury. Published in the Federal Register.
Types of Treasury Regulations - ✔✔1. Legislative Regulations
2. Interpretive Regulations
3. Procedural Regulations
Who is bound by IRS regulations? - ✔✔The IRS (the courts are not)
Classification of Treasury Regulations - ✔✔Proposed
Temporary
Final
Page 2 of 23
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
, Revenue Rulings and Revenue Procedures - ✔✔Can be used by taxpayers as
guidance to avoid certain accuracy related penalties
Technical Advice Memoranda (TAMs) - ✔✔TAMs are issued by the IRS in
response to questions raised by IRS field personnel during audits. They deal
with completed rather than proposed transactions and are often requested for
questions related to exempt organizations and employee plans.
Private Letter Ruling (PLR) - ✔✔The IRS's written response to a taxpayer's
inquiry as to how the tax law applies to a proposed transaction. $$$$
Internal Revenue Manual (IRM) - ✔✔Policies, procedures and guidelines
governing the operations and organization of the IRS. Used by IRS employees
IRS publications and forms.... - ✔✔are not considered substantial authority!
IRS Divisions - ✔✔1. Large Business & International Division
2. Small Business and Self-Employed Division
3. Wage and Investment Division
4. Tax Exempt and Government Entities Division
Taxpayer Advocate Service - ✔✔Independent organization within IRS who can
help resolve problems. Can call or use Form 911. Taxpayer has to be in
Page 3 of 23
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
