Unit 2 Practice Before The IRS Exam
Questions and Answers
All EAs are required to obtain PTINs as a condition of their licensing (the PTIN must
be included on Form 23, which is the application form to become an enrolled agent).
Attorneys and CPAs do not need to obtain a PTIN unless they prepare tax returns for
compensation. Someone who prepares returns for free is not considered a preparer
by the IRS and does not need a PTIN.
Matthew is a full-time employee for Parkway Partnership. He is not an EA, attorney,
or CPA. Parkway requests that Matthew represent the partnership in connection with
an IRS audit. Which of the following statements is correct?
A. Matthew is allowed to represent the partnership before the IRS
B. Matthew is not allowed to represent the partnership before the IRS
C. Matthew is only allowed to represent individual partners before the IRS
D. None of the above - Answer-A. Matthew is allowed to represent the partnership
before the IRS
Matthew is a full-time employee for Parkway Partnership, so in that capacity he may
represent his employer before the IRS. A regular full-time employee of an individual
employer may represent the employer.
What is the enrollment cycle for enrolled agents?
A. The year after the effective date of renewal
B. The three successive enrollment years preceding the effective date of renewal
C. The method by which the RPO approved EA exam candidates
D. The method Prometric uses to choose EA exam questions - Answer-B. The three
successive enrollment years preceding the effective date of renewal
The enrollment cycle means the three successive enrollment years preceding the
effective date of renewal. After the initial enrollment period, regular renewal
enrollments are required every three years. This is known as an enrollment cycle.
Which of the following individuals does not qualify as a practitioner?
A. CPA
B. Enrolled actuary
C. Registered tax return preparer
D. All of the above are considered practitioners - Answer-C. Registered tax return
preparer
The RTRP designation is defunct due to the IRS's loss in the Loving case. An
individual who passed the RTRP exam is considered an unenrolled preparer and not
a practitioner; unenrolled preparers have limited rights of practice before the IRS. An
unenrolled preparer may only represent a taxpayer for the tax return or claim of
refund he personally prepared and signed. This representation may occur only
, before revenue agents and similar employees of the IRA, and not before appeals or
revenue officers. An unenrolled preparer also may not sign any document on behalf
of a taxpayer.
All of the following are potential grounds for denial of enrollment except:
A. Failure to timely file returns
B. Failure to pay taxes
C. Felony convictions
D. A candidate who is only 18 years old - Answer-D. A candidate who is only 18
years old
The minimum age for enrollment is 18, so anyone over 17 would not be denied
enrollment based on his age. Failure to timely file tax returns or pay taxes, and
felony convictions are all potential grounds for denying an application for enrollment.
The Return Preparer Office will review all of the facts and circumstances to
determine whether a denial of enrollment is warranted.
Everett is an EA with a PTIN. His firm employs a bookkeeper named Fernanda. She
gathers client receipts and invoices and organizes and records all information for
Everett. Which of the following statements is correct?
A. Fernanda needs to have a PTIN, and she is required to become an EA because
she assists in the preparation of returns
B.Fernanda needs to have a PTIN, but she is not required to become an EA
C. Fernanda is not a tax return preparer and is not required to have a PTIN
D.Fernanda is a supervised preparer and needs to have a PTIN - Answer-C.
Fernanda is not a tax return preparer and is not required to have a PTIN
Fernanda is not a tax return preparer and is not required to have a PTIN. An
individual who provides only typing, reproduction, or other mechanical assistance but
does not actually prepare returns is not considered a tax return preparer by the IRS.
The IRS's new public directory of tax return preparers includes listings for:
A. Practitioners with a current PTIN
B. All current PTIN holders
C. Enrolled agents and CPAs with a current PTIN
D.Practitioners with a current PTIN and AFSP Record of Completion holders -
Answer-D.Practitioners with a current PTIN and AFSP Record of Completion holders
The Annual Filing Season Program is the IRS' new voluntary program to replace the
RTRP program. Those who pass the programs' education and testing requirements
receive an AFSP Record of Completion for the year. Participants will be included in a
public, searchable database of tax return preparers on the IRS website. Individuals
can opt out of being listed. Unenrolled preparers with PTINs who are not Record of
Completion holders are not listed in the directory.
Which of the following is considered a tax return preparer under Circular 230
regulations?
Questions and Answers
All EAs are required to obtain PTINs as a condition of their licensing (the PTIN must
be included on Form 23, which is the application form to become an enrolled agent).
Attorneys and CPAs do not need to obtain a PTIN unless they prepare tax returns for
compensation. Someone who prepares returns for free is not considered a preparer
by the IRS and does not need a PTIN.
Matthew is a full-time employee for Parkway Partnership. He is not an EA, attorney,
or CPA. Parkway requests that Matthew represent the partnership in connection with
an IRS audit. Which of the following statements is correct?
A. Matthew is allowed to represent the partnership before the IRS
B. Matthew is not allowed to represent the partnership before the IRS
C. Matthew is only allowed to represent individual partners before the IRS
D. None of the above - Answer-A. Matthew is allowed to represent the partnership
before the IRS
Matthew is a full-time employee for Parkway Partnership, so in that capacity he may
represent his employer before the IRS. A regular full-time employee of an individual
employer may represent the employer.
What is the enrollment cycle for enrolled agents?
A. The year after the effective date of renewal
B. The three successive enrollment years preceding the effective date of renewal
C. The method by which the RPO approved EA exam candidates
D. The method Prometric uses to choose EA exam questions - Answer-B. The three
successive enrollment years preceding the effective date of renewal
The enrollment cycle means the three successive enrollment years preceding the
effective date of renewal. After the initial enrollment period, regular renewal
enrollments are required every three years. This is known as an enrollment cycle.
Which of the following individuals does not qualify as a practitioner?
A. CPA
B. Enrolled actuary
C. Registered tax return preparer
D. All of the above are considered practitioners - Answer-C. Registered tax return
preparer
The RTRP designation is defunct due to the IRS's loss in the Loving case. An
individual who passed the RTRP exam is considered an unenrolled preparer and not
a practitioner; unenrolled preparers have limited rights of practice before the IRS. An
unenrolled preparer may only represent a taxpayer for the tax return or claim of
refund he personally prepared and signed. This representation may occur only
, before revenue agents and similar employees of the IRA, and not before appeals or
revenue officers. An unenrolled preparer also may not sign any document on behalf
of a taxpayer.
All of the following are potential grounds for denial of enrollment except:
A. Failure to timely file returns
B. Failure to pay taxes
C. Felony convictions
D. A candidate who is only 18 years old - Answer-D. A candidate who is only 18
years old
The minimum age for enrollment is 18, so anyone over 17 would not be denied
enrollment based on his age. Failure to timely file tax returns or pay taxes, and
felony convictions are all potential grounds for denying an application for enrollment.
The Return Preparer Office will review all of the facts and circumstances to
determine whether a denial of enrollment is warranted.
Everett is an EA with a PTIN. His firm employs a bookkeeper named Fernanda. She
gathers client receipts and invoices and organizes and records all information for
Everett. Which of the following statements is correct?
A. Fernanda needs to have a PTIN, and she is required to become an EA because
she assists in the preparation of returns
B.Fernanda needs to have a PTIN, but she is not required to become an EA
C. Fernanda is not a tax return preparer and is not required to have a PTIN
D.Fernanda is a supervised preparer and needs to have a PTIN - Answer-C.
Fernanda is not a tax return preparer and is not required to have a PTIN
Fernanda is not a tax return preparer and is not required to have a PTIN. An
individual who provides only typing, reproduction, or other mechanical assistance but
does not actually prepare returns is not considered a tax return preparer by the IRS.
The IRS's new public directory of tax return preparers includes listings for:
A. Practitioners with a current PTIN
B. All current PTIN holders
C. Enrolled agents and CPAs with a current PTIN
D.Practitioners with a current PTIN and AFSP Record of Completion holders -
Answer-D.Practitioners with a current PTIN and AFSP Record of Completion holders
The Annual Filing Season Program is the IRS' new voluntary program to replace the
RTRP program. Those who pass the programs' education and testing requirements
receive an AFSP Record of Completion for the year. Participants will be included in a
public, searchable database of tax return preparers on the IRS website. Individuals
can opt out of being listed. Unenrolled preparers with PTINs who are not Record of
Completion holders are not listed in the directory.
Which of the following is considered a tax return preparer under Circular 230
regulations?
