SEE 3 - IRS Practice Exam Questions
and Answers
For the IRS to grant a guaranteed installment agreement, a taxpayer must have not
failed to file any income tax returns or pay any tax shown on such returns during any
of the preceding:
(A) 3 taxable years
(B) 5 taxable years
(C) 6 taxable years
(D) 10 taxable years - Answer-Key: B
References: IRC §6159(c)(2)
A taxpayer is provided a $300 per month mileage allowance for business travel from
employer. In order for this to be a non-taxable item, which of the following must be
true?
(A) The taxpayer must return any excess reimbursement within 180 days after the
expense was paid or incurred
(B) The taxpayer must adequately account for the expenses within 60 days after they
were paid or incurred
(C) The taxpayer must receive the advance within 60 days of the time the taxpayer
has the expense
(D) The taxpayer must adequately account for the expenses within 120 days after
they were paid or incurred - Answer-Key: B
References: Publication 463 Chapter 6 Page 29
Which of the following tasks can be performed by an enrolled agent (EA) on behalf of
his or her client?
(A) Prepare and file a suit for refund in United States District Court
(B) Prepare and sign a United States Tax Court petition to contest a notice of
deficiency
(C) Prepare and sign a protest to challenge examination results in the IRS Appeals
Office
(D) Prepare and file a bankruptcy petition in United States Bankruptcy Court due to
unpaid tax balances - Answer-Key: C
References: Cir. 230, Section 10.2(a)(4), 10.3(c) , and 10.32; Pub 947, pages 3 and
7
An enrolled agent (EA) can represent a taxpayer:
(A) Before any administrative level of the IRS
(B) Only if the EA prepared the return under examination
(C) At all tax-related federal court proceedings
(D) Before collections, examinations, and the Tax Court - Answer-Key: A
References: Publication 947, pages 3 and 7; Cir. 230, sections 10.2(a)(4), 10.3(c) &
10.32
A new client visits an enrolled agent (EA). The taxpayer believes that the U.S. tax
system is purely voluntary and filed a return showing no income tax, requesting all
withholding be refunded. The IRS assessed a $5,000 frivolous return penalty. The
, taxpayer has received a Notice of Intent to Levy and Right to Collection Due Process
(CDP) Hearing concerning the $5,000 penalty. The taxpayer wants the EA to present
the previous arguments about the tax system in the CDP hearing request. Which of
the following is a correct statement regarding the CDP hearing request raising
arguments previously deemed frivolous?
(A)If the IRS provides the taxpayer with notice that the CDP request is frivolous, the
taxpayer will be given 30 days to withdraw or amend the CDP request in order to
avoid a frivolous submission penalty
(B) The EA would not be subject to a frivolous submission penalty by submitting the
CDP hearing request
(C) - Answer-Key: A
References: IRC §§ 6330(g), 6702
A taxpayer received a notice from the IRS stating a prior year's tax return had been
examined and that an adjustment was made increasing the amount of tax by $2,560.
The taxpayer disagrees with the adjustment. The taxpayer could request an audit
reconsideration in all of the following situations EXCEPT:
(A) The full amount owed has already been paid
(B) There is new documentation for the examination
(C) They neither appeared for the examination nor sent information to the IRS
(D) They moved and never received the examination notice - Answer-Key: A
References: Publication 3598
An enrolled agent's (EA's) client is an individual taxpayer who is requesting
assistance with a proposed penalty. All of the following are methods of contesting
the penalty, EXCEPT:
(A) Prior to a penalty's assessment, the EA can request a review of the penalty
(B) Prior to a penalty's assessment, the EA can request binding arbitration to
reconsider the penalty
(C) After the penalty has been assessed, a written request for abatement can be
submitted
(D) After the penalty has been assessed and paid, the EA can file a claim for refund -
Answer-Key: B
References: Methods of Appealing Penalties, IRM 20.1.1.4(2)
An enrolled agent's communications with a client may be privileged if they concern:
(A) Encouraging the client to participate in a tax shelter
(B) Preparing the client's tax return
(C) Representing the client in an IRS examination
(D) A criminal tax investigation - Answer-Key: C
References: IRC § 7525 (a)(1)-(2) and (b); Publication 556, pages 3-4
When advertising their services, an enrolled agent may use all of the following
phrases to describe their professional designation EXCEPT:
(A) Certified to practice before the Internal Revenue Service
(B) Admitted to practice before the Internal Revenue Service
(C) Enrolled to represent taxpayers before the Internal Revenue Service
(D) Enrolled to practice before the Internal Revenue Service - Answer-Key: A
References: Cir. 230, section 10.30(a)(1)
and Answers
For the IRS to grant a guaranteed installment agreement, a taxpayer must have not
failed to file any income tax returns or pay any tax shown on such returns during any
of the preceding:
(A) 3 taxable years
(B) 5 taxable years
(C) 6 taxable years
(D) 10 taxable years - Answer-Key: B
References: IRC §6159(c)(2)
A taxpayer is provided a $300 per month mileage allowance for business travel from
employer. In order for this to be a non-taxable item, which of the following must be
true?
(A) The taxpayer must return any excess reimbursement within 180 days after the
expense was paid or incurred
(B) The taxpayer must adequately account for the expenses within 60 days after they
were paid or incurred
(C) The taxpayer must receive the advance within 60 days of the time the taxpayer
has the expense
(D) The taxpayer must adequately account for the expenses within 120 days after
they were paid or incurred - Answer-Key: B
References: Publication 463 Chapter 6 Page 29
Which of the following tasks can be performed by an enrolled agent (EA) on behalf of
his or her client?
(A) Prepare and file a suit for refund in United States District Court
(B) Prepare and sign a United States Tax Court petition to contest a notice of
deficiency
(C) Prepare and sign a protest to challenge examination results in the IRS Appeals
Office
(D) Prepare and file a bankruptcy petition in United States Bankruptcy Court due to
unpaid tax balances - Answer-Key: C
References: Cir. 230, Section 10.2(a)(4), 10.3(c) , and 10.32; Pub 947, pages 3 and
7
An enrolled agent (EA) can represent a taxpayer:
(A) Before any administrative level of the IRS
(B) Only if the EA prepared the return under examination
(C) At all tax-related federal court proceedings
(D) Before collections, examinations, and the Tax Court - Answer-Key: A
References: Publication 947, pages 3 and 7; Cir. 230, sections 10.2(a)(4), 10.3(c) &
10.32
A new client visits an enrolled agent (EA). The taxpayer believes that the U.S. tax
system is purely voluntary and filed a return showing no income tax, requesting all
withholding be refunded. The IRS assessed a $5,000 frivolous return penalty. The
, taxpayer has received a Notice of Intent to Levy and Right to Collection Due Process
(CDP) Hearing concerning the $5,000 penalty. The taxpayer wants the EA to present
the previous arguments about the tax system in the CDP hearing request. Which of
the following is a correct statement regarding the CDP hearing request raising
arguments previously deemed frivolous?
(A)If the IRS provides the taxpayer with notice that the CDP request is frivolous, the
taxpayer will be given 30 days to withdraw or amend the CDP request in order to
avoid a frivolous submission penalty
(B) The EA would not be subject to a frivolous submission penalty by submitting the
CDP hearing request
(C) - Answer-Key: A
References: IRC §§ 6330(g), 6702
A taxpayer received a notice from the IRS stating a prior year's tax return had been
examined and that an adjustment was made increasing the amount of tax by $2,560.
The taxpayer disagrees with the adjustment. The taxpayer could request an audit
reconsideration in all of the following situations EXCEPT:
(A) The full amount owed has already been paid
(B) There is new documentation for the examination
(C) They neither appeared for the examination nor sent information to the IRS
(D) They moved and never received the examination notice - Answer-Key: A
References: Publication 3598
An enrolled agent's (EA's) client is an individual taxpayer who is requesting
assistance with a proposed penalty. All of the following are methods of contesting
the penalty, EXCEPT:
(A) Prior to a penalty's assessment, the EA can request a review of the penalty
(B) Prior to a penalty's assessment, the EA can request binding arbitration to
reconsider the penalty
(C) After the penalty has been assessed, a written request for abatement can be
submitted
(D) After the penalty has been assessed and paid, the EA can file a claim for refund -
Answer-Key: B
References: Methods of Appealing Penalties, IRM 20.1.1.4(2)
An enrolled agent's communications with a client may be privileged if they concern:
(A) Encouraging the client to participate in a tax shelter
(B) Preparing the client's tax return
(C) Representing the client in an IRS examination
(D) A criminal tax investigation - Answer-Key: C
References: IRC § 7525 (a)(1)-(2) and (b); Publication 556, pages 3-4
When advertising their services, an enrolled agent may use all of the following
phrases to describe their professional designation EXCEPT:
(A) Certified to practice before the Internal Revenue Service
(B) Admitted to practice before the Internal Revenue Service
(C) Enrolled to represent taxpayers before the Internal Revenue Service
(D) Enrolled to practice before the Internal Revenue Service - Answer-Key: A
References: Cir. 230, section 10.30(a)(1)
