SU 3: Representation || 100% Verified Solutions.
Tax return information is typically confidential; disclosure of return information is permitted to
all of the following parties EXCEPT
-A person designated by the taxpayer.
-State tax officials.
-Relatives of the taxpayer.
-Congressional committees. correct answers -Relatives of the taxpayer.
How many future years will the IRS record to the Centralized Authentication File (CAF) at the
taxpayer's request based on receipt of a valid Form 2848 authorizing representation for tax years
or periods?
-Dec. 31 of year of receipt + 1 year.
-Dec. 31 of year of receipt + 3 years.
-Dec. 31 of year of receipt + 2 years.
-Dec. 31 of year of receipt + 4 years. correct answers -Dec. 31 of year of receipt + 3 years.
Judith wants to revoke a power of attorney that she previously executed and does not want to
name a new representative. In order to do this, what is Judith's most appropriate action?
-Judith must send a letter to her nearest Internal Revenue Service Center informing them that she
wants to revoke the current power of attorney that is on file.
-Judith must send a new power of attorney to the Internal Revenue Service office(s) where the
prior power was originally filed and name herself as the representative.
-Judith must call the Internal Revenue Service toll free number, verify that she is Judith, and
inform them she wants to revoke the current power of attorney that is on file.
-Judith must send a copy of the previously executed power of attorney to the Internal Revenue
Service (with an original signature and write "REVOKE" across the top of the power of attorney.
,correct answers -Judith must send a copy of the previously executed power of attorney to the
Internal Revenue Service (with an original signature and write "REVOKE" across the top of the
power of attorney.
An Enrolled Agent (EA) may represent a taxpayer
-At all tax-related federal court proceedings.
-Before the Taxpayer Advocate Service and the Tax Court.
-At conferences or meetings with the IRS Examination Division.
-Only if the EA prepared the return under examination. correct answers -At conferences or
meetings with the IRS Examination Division.
Regarding a Tax Information Authorization, Form 8821, which of the following statements is
true?
-The appointee can execute waivers.
-The appointee can advocate the taxpayer's position.
-The appointee can represent the taxpayer by correspondence.
-None of the answers are correct. correct answers -None of the answers are correct.
A taxpayer filed an appeal of an IRS examination and then signed IRS Form 8821, Tax
Information Authorization, authorizing an enrolled agent (EA) to receive the taxpayer's
confidential tax information related to the matter before the Independent Office of Appeals.
Which of the following is correct regarding the EA's ability to represent the taxpayer regarding
the appeal?
-The EA may not represent the client.
-The EA may represent the client with a note attached to Form 8821.
-The EA may represent the client based on the Form 8821.
, -The EA may represent the client with the oral consent of the client. correct answers -The EA
may not represent the client.
Which of the following is false with respect to the Internal Revenue Service's Centralized
Authorization File (CAF)?
-Information recorded onto the CAF system enables IRS personel who do not have a copy of the
actual power of attorney or tax information authorization to verify the authority of the taxpayer's
representative.
-The issuance of a CAF number indicates that a person is either recognized or authorized to
practice before the Internal Revenue Service under the provisions of Treasury Department
Circular 230.
-If a representative wants his or her non-IRS power of attorney entered into the CAF, the
representative should attach it to a completed "transmittal" Form 2848 and submit it to the IRS.
-A power of attorney will not be rejected based on the absence of a CAF number. correct answers
-A power of attorney will not be rejected based on the absence of a CAF number.
A representative who signs a Form 2848, Power of Attorney and Declaration of Representative,
declares under penalty of perjury that (s)he is aware of which of the following?
-Recent tax law developments that relate to the tax matter(s) listed on line 3 of the Form 2848.
-The federal income tax regulations.
-The regulations in Treasury Department Circular No. 230.
-All of the answers are correct. correct answers -The regulations in Treasury Department Circular
No. 230.
All of the following statements regarding changes to powers of attorney are true EXCEPT
-If specifically authorized on the power of attorney, a recognized representative may delegate
authority to another recognized representative.
Tax return information is typically confidential; disclosure of return information is permitted to
all of the following parties EXCEPT
-A person designated by the taxpayer.
-State tax officials.
-Relatives of the taxpayer.
-Congressional committees. correct answers -Relatives of the taxpayer.
How many future years will the IRS record to the Centralized Authentication File (CAF) at the
taxpayer's request based on receipt of a valid Form 2848 authorizing representation for tax years
or periods?
-Dec. 31 of year of receipt + 1 year.
-Dec. 31 of year of receipt + 3 years.
-Dec. 31 of year of receipt + 2 years.
-Dec. 31 of year of receipt + 4 years. correct answers -Dec. 31 of year of receipt + 3 years.
Judith wants to revoke a power of attorney that she previously executed and does not want to
name a new representative. In order to do this, what is Judith's most appropriate action?
-Judith must send a letter to her nearest Internal Revenue Service Center informing them that she
wants to revoke the current power of attorney that is on file.
-Judith must send a new power of attorney to the Internal Revenue Service office(s) where the
prior power was originally filed and name herself as the representative.
-Judith must call the Internal Revenue Service toll free number, verify that she is Judith, and
inform them she wants to revoke the current power of attorney that is on file.
-Judith must send a copy of the previously executed power of attorney to the Internal Revenue
Service (with an original signature and write "REVOKE" across the top of the power of attorney.
,correct answers -Judith must send a copy of the previously executed power of attorney to the
Internal Revenue Service (with an original signature and write "REVOKE" across the top of the
power of attorney.
An Enrolled Agent (EA) may represent a taxpayer
-At all tax-related federal court proceedings.
-Before the Taxpayer Advocate Service and the Tax Court.
-At conferences or meetings with the IRS Examination Division.
-Only if the EA prepared the return under examination. correct answers -At conferences or
meetings with the IRS Examination Division.
Regarding a Tax Information Authorization, Form 8821, which of the following statements is
true?
-The appointee can execute waivers.
-The appointee can advocate the taxpayer's position.
-The appointee can represent the taxpayer by correspondence.
-None of the answers are correct. correct answers -None of the answers are correct.
A taxpayer filed an appeal of an IRS examination and then signed IRS Form 8821, Tax
Information Authorization, authorizing an enrolled agent (EA) to receive the taxpayer's
confidential tax information related to the matter before the Independent Office of Appeals.
Which of the following is correct regarding the EA's ability to represent the taxpayer regarding
the appeal?
-The EA may not represent the client.
-The EA may represent the client with a note attached to Form 8821.
-The EA may represent the client based on the Form 8821.
, -The EA may represent the client with the oral consent of the client. correct answers -The EA
may not represent the client.
Which of the following is false with respect to the Internal Revenue Service's Centralized
Authorization File (CAF)?
-Information recorded onto the CAF system enables IRS personel who do not have a copy of the
actual power of attorney or tax information authorization to verify the authority of the taxpayer's
representative.
-The issuance of a CAF number indicates that a person is either recognized or authorized to
practice before the Internal Revenue Service under the provisions of Treasury Department
Circular 230.
-If a representative wants his or her non-IRS power of attorney entered into the CAF, the
representative should attach it to a completed "transmittal" Form 2848 and submit it to the IRS.
-A power of attorney will not be rejected based on the absence of a CAF number. correct answers
-A power of attorney will not be rejected based on the absence of a CAF number.
A representative who signs a Form 2848, Power of Attorney and Declaration of Representative,
declares under penalty of perjury that (s)he is aware of which of the following?
-Recent tax law developments that relate to the tax matter(s) listed on line 3 of the Form 2848.
-The federal income tax regulations.
-The regulations in Treasury Department Circular No. 230.
-All of the answers are correct. correct answers -The regulations in Treasury Department Circular
No. 230.
All of the following statements regarding changes to powers of attorney are true EXCEPT
-If specifically authorized on the power of attorney, a recognized representative may delegate
authority to another recognized representative.
