EA PART 3 SECTION 1 QUESTIONS WITH COMPLETE
SOLUTIONS
A notice of disbarment or suspension of a certified public
accountant from practice before the Internal Revenue Service is
issued to which of the following? Correct Answers all of the
answers are correct
IRS employees
Interested departments and agencies of the federal government
State authorities
A practitioner may seek reinstatement after Correct Answers
Five years
A tax advisor with what responsibility should take reasonable
steps to ensure that the firms procedures for all members,
associates, and employees are consistent with the best practices?
Correct Answers Both overseeing a firms practice of providing
advice concerning federal tax issues and preparing or assisting
in the preparation of submissions to the IRS
A tax preparer has advised a company to take a position on its
tax return. The tax preparer believes that there is a 75%
possibility that the position will be sustained if audited by the
IRS. If the position is not sustained, an accuracy-related penalty,
and a late payment penalty would apply. What is the tax
preparer responsibility regarding disclosure of the Penalty to the
company? Correct Answers The tax preparer is responsible for
disclosing both penalties to the company
,after a decision has been made on a complaint filed by the IRS,
the practitioner or IRS may appeal the decision. Which
statement is true with respect to filing an appeal of the decision?
Correct Answers Within 30 days from the date of the
administrative law, judges, decision, either party may appeal to
the secretary of the treasury or his or delegate
all of the following are considered examples of disreputable
conduct for which an enrolled agent can be disbarred or
suspended except Correct Answers Failure to timely pay
personal income taxes.
all of the following are examples of disreputable conduct for
which an enrolled agent may be disbarred or suspended from
practice before the internal revenue service except Correct
Answers soliciting by mailings, the contents of which are
designed for the general public
All of the following individuals are eligible to practice (on a
limited basis) before the IRS EXCEPT Correct Answers A
limited partner in a partnership may represent the partnership
All of the following practice before the internal revenue service
except Correct Answers An individual convicted of any offense
involving dishonesty or breach of trust
All of the following types of individuals may practice before the
IRS except Correct Answers Certified financial advisors
, An appeal from the initial decision ordering disbarment is made
to which of the following? Correct Answers Secretary of
Treasury
An Enrolled Agent (EA) in the process of representing taxpayer
before the internal revenue service for a tax matter involving a
tax return the taxpayer filed claiming married filing jointly
status with her former husband. The taxpayers former husband
also asked the EA to represent him the same. Which of the
following is true regarding the EA representing them both?
Correct Answers The EA must reasonably believe that the EA
will be able to provide competent and diligent representation to
both taxpayers
An Enrolled Agent (EA) represented both taxpayer and a former
business partner of the taxpayer before the IRS with regard to a
specific tax matter. Due to a conflict of interest between the two
taxpayers in the tax matter, the EA obtained a written consent
from each of the clients waving the conflict of interest and
giving informed consent. For how long does the EA need to
keep those written consents after the conclusion of
representation? Correct Answers 36 months
An Enrolled Agent (EA) represents a married couple in an
ongoing examination. One afternoon, the taxpayer-wife shows
up early to a meeting at the EA's office. Off the record, the
taxpayer-wife confides to the EA that the examination is causing
marital strife, and that the taxpayer-wife Is not sure, but now
suspect that her spouse may have taken erroneous business
deductions. All of the following activities would address the
conflict of interest except Correct Answers Politely advising
SOLUTIONS
A notice of disbarment or suspension of a certified public
accountant from practice before the Internal Revenue Service is
issued to which of the following? Correct Answers all of the
answers are correct
IRS employees
Interested departments and agencies of the federal government
State authorities
A practitioner may seek reinstatement after Correct Answers
Five years
A tax advisor with what responsibility should take reasonable
steps to ensure that the firms procedures for all members,
associates, and employees are consistent with the best practices?
Correct Answers Both overseeing a firms practice of providing
advice concerning federal tax issues and preparing or assisting
in the preparation of submissions to the IRS
A tax preparer has advised a company to take a position on its
tax return. The tax preparer believes that there is a 75%
possibility that the position will be sustained if audited by the
IRS. If the position is not sustained, an accuracy-related penalty,
and a late payment penalty would apply. What is the tax
preparer responsibility regarding disclosure of the Penalty to the
company? Correct Answers The tax preparer is responsible for
disclosing both penalties to the company
,after a decision has been made on a complaint filed by the IRS,
the practitioner or IRS may appeal the decision. Which
statement is true with respect to filing an appeal of the decision?
Correct Answers Within 30 days from the date of the
administrative law, judges, decision, either party may appeal to
the secretary of the treasury or his or delegate
all of the following are considered examples of disreputable
conduct for which an enrolled agent can be disbarred or
suspended except Correct Answers Failure to timely pay
personal income taxes.
all of the following are examples of disreputable conduct for
which an enrolled agent may be disbarred or suspended from
practice before the internal revenue service except Correct
Answers soliciting by mailings, the contents of which are
designed for the general public
All of the following individuals are eligible to practice (on a
limited basis) before the IRS EXCEPT Correct Answers A
limited partner in a partnership may represent the partnership
All of the following practice before the internal revenue service
except Correct Answers An individual convicted of any offense
involving dishonesty or breach of trust
All of the following types of individuals may practice before the
IRS except Correct Answers Certified financial advisors
, An appeal from the initial decision ordering disbarment is made
to which of the following? Correct Answers Secretary of
Treasury
An Enrolled Agent (EA) in the process of representing taxpayer
before the internal revenue service for a tax matter involving a
tax return the taxpayer filed claiming married filing jointly
status with her former husband. The taxpayers former husband
also asked the EA to represent him the same. Which of the
following is true regarding the EA representing them both?
Correct Answers The EA must reasonably believe that the EA
will be able to provide competent and diligent representation to
both taxpayers
An Enrolled Agent (EA) represented both taxpayer and a former
business partner of the taxpayer before the IRS with regard to a
specific tax matter. Due to a conflict of interest between the two
taxpayers in the tax matter, the EA obtained a written consent
from each of the clients waving the conflict of interest and
giving informed consent. For how long does the EA need to
keep those written consents after the conclusion of
representation? Correct Answers 36 months
An Enrolled Agent (EA) represents a married couple in an
ongoing examination. One afternoon, the taxpayer-wife shows
up early to a meeting at the EA's office. Off the record, the
taxpayer-wife confides to the EA that the examination is causing
marital strife, and that the taxpayer-wife Is not sure, but now
suspect that her spouse may have taken erroneous business
deductions. All of the following activities would address the
conflict of interest except Correct Answers Politely advising
