IRS EA EXAM PART 3 COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS
Updated Questions and Answers 100% Verified Exam Prep
,What must an unenrolled preparer do to qualify for the Annual Complete a minimum of 18 hours of continuing education including a 6 hour Annual
Filing Season Program (AFSP)? Federal Tax Refresher (AFTR) course and exam; have a PTIN; consent to regulation under
Circular 230; there is no fee
Scenario: An AFSP preparer prepared and signed a client's No; AFSP preparers may represent clients only for returns they prepared and signed, and
return and wants to represent the client before an IRS Appeals only before revenue agents, customer service agents, and other front-line IRS employees
officer. Allowed? - and must be AFSP-qualified for both the year of the return and the year of
representation
Who may skip the Annual Federal Tax Refresher course and Anyone who passed Part 1 of the EA exam within the last 3 years
exam for AFSP purposes?
Scenario: Ron, an unenrolled preparer with no AFSP record, No; unenrolled preparers without AFSP have virtually no representation rights for any tax
prepared and signed a client's 2025 return. Can he represent return signed after December 31, 2015
the client in its audit?
What limited practice rights do appraisers, enrolled retirement Appraisers: no representation rights but can appear as a witness; enrolled retirement
plan agents, and enrolled actuaries have? plan agents and enrolled actuaries in good standing: may represent taxpayers only in
their area of expertise
Scenario: A student intern at a Low Income Taxpayer Clinic If supervised by a practitioner, the LITC student intern can request authorization from the
wants to represent a taxpayer. How is that possible? IRS to represent the taxpayer before the IRS
Scenario: A taxpayer asks her cousin (not a tax professional) to No; immediate family representation is limited to a spouse, child, parent, brother, or sister
represent her before the IRS as family. Allowed? - a cousin does not qualify
Who may represent an entity before the IRS through a special An officer of a corporation, association, or organized group; a general partner in a
relationship, and how does a fiduciary appear? partnership; a full-time employee for the employer; an individual for themselves; a
fiduciary (trustee, executor, personal representative, administrator, receiver, guardian)
stands in the position of the taxpayer and acts AS the taxpayer, not as a representative
Scenario: A client wants to name a CPA firm (the entity itself) No; corporations, partnerships, or any entity other than an individual cannot practice
as her representative. Allowed? before the IRS - nor can anyone the IRS has disqualified
Scenario: Maria prepares about 10 returns for pay each spring Yes; a tax preparer is anyone who prepares all or a substantial portion of a return for
as a casual side gig. Does she need a PTIN? compensation - full-time, part-time, or casual - and all paid preparers must have their
own PTIN
,Who is the "signer" of a return, and who does NOT need a The signer has primary responsibility for the accuracy of the return; no PTIN is needed by
PTIN? those performing only clerical (including data entry), mechanical, or administrative
support functions, or by volunteers (e.g. VITA)
Scenario: A 17-year-old wants to register for a PTIN to prepare No; PTIN registrants must be at least 18 years old, pay the fee, pass a limited tax
paid returns. Can she? compliance check (own personal and business returns filed), and renew the PTIN each
year
List the steps to become an EA via the examination path. Obtain a PTIN; apply for and pass the three-part SEE; within 1 year of passing, file Form
23 (Application for Enrollment to Practice Before the Internal Revenue Service); pass an
IRS background check and tax compliance check (no activity that would cause
suspension or disbarment under Circular 230)
Scenario: Dan passed all three SEE parts 14 months ago but No; Form 23 must be filed within 1 year of passing the exam
never filed Form 23. Can he still enroll on that exam?
What are the requirements for a former IRS employee to Obtain a PTIN; at least 5 years experience as an IRS employee in a position interpreting
become an EA without the exam? and applying the Internal Revenue Code and Regulations; apply within 3 years of leaving
that position; file Form 23; pass background and tax compliance checks
How often must EAs renew enrollment, and on what form? Every three years, using Form 8554, Application for Renewal of Enrollment to Practice
Before the Internal Revenue Service
What are the EA renewal windows by last digit of SSN? SSN ending 7, 8, 9, or no SSN: 11/1/2026 to 1/31/2027; ending 0, 1, 2, 3: 11/1/2027 to
1/31/2028; ending 4, 5, 6: 11/1/2028 to 1/31/2029
What are the EA CE requirements per cycle and per year? At least 72 hours of qualifying CE per 3-year renewal cycle, with at least 16 hours each
calendar year, including at least 2 hours of ethics annually
What are the CE requirements for a NEW EA during the first 2 hours of CE for each month of enrollment (including the month of enrollment), plus 2
(partial) enrollment cycle? hours of ethics annually, which also counts toward the total CE requirement
Scenario: Elizabeth became an EA on August 24th in the third At least 10 hours of CE (2 hours for each month from Aug through Dec), including 2 hours
year of her enrollment cycle. What CE must she complete by of ethics
December 31st?
How many minutes of instruction equal one CE credit hour, 50 minutes of instruction = 1 hour of credit; all courses must be IRS-approved and
and who must provide the courses? provided by IRS-approved CE sponsors
, Scenario: An EA teaches one 2-hour qualified EA course this 6 hours: 1 hour for each hour teaching (2) plus 2 hours of preparation for each hour
year. How much CE credit does she earn? taught (4); 6 hours is also the annual maximum for teaching
How long must an EA keep CE completion certificates, given At least 4 years from the date of renewal, even though CE providers electronically report
that providers report to the IRS? attendees' PTINs and names; the IRS has the right to audit your CE
For what reasons will the IRS waive CE requirements? Health issues; active military duty; absence from the United States for employment; other
reasons on a case-by-case basis
Scenario: An EA is notified she is being placed in inactive She has 60 days from notification to respond and provide proof of the missing
status for missing CE. What can she do, and what if she misses requirements; if a renewal cycle is missed, she must pay fees for the prior and current
a whole renewal cycle? cycles and provide proof of CE compliance
List reasons an EA can lose eligibility to practice. Not meeting CE requirements; not renewing the PTIN; requesting inactive or retired
status; being disciplined by state regulatory agencies (e.g. disbarred or losing a CPA
license)
When must a practitioner submit records or information to the Promptly, when lawfully requested, unless the practitioner reasonably believes they are
IRS? privileged; if the practitioner lacks them, he must promptly tell the IRS who has them; a
practitioner must not interfere with a lawful request
Scenario: A practitioner discovers his client omitted income on Promptly advise the client of the noncompliance, error, or omission AND advise of the
a filed return. What must he do? consequences of not correcting it; there is NO duty or right to report it to the IRS or to
correct it without the client's consent
In what three areas must a practitioner exercise due diligence? Preparing/assisting/approving/filing returns and documents in IRS matters; determining
the correctness of representations made to the Department of the Treasury; determining
the correctness of representations made to clients on matters administered by the IRS
When is a practitioner presumed to have exercised due When the practitioner used reasonable care in engaging, supervising, training, and
diligence when relying on another person's work product? evaluating the person
Which five tax benefits trigger Form 8867, Paid Preparer's Due American Opportunity Credit; Child Tax Credit/Additional Child Tax Credit; Credit for
Diligence Checklist? Other Dependents; Earned Income Credit; Head of Household filing status - Form 8867
must be completed and filed with any return claiming one of these
DETAILED ANSWERS
Updated Questions and Answers 100% Verified Exam Prep
,What must an unenrolled preparer do to qualify for the Annual Complete a minimum of 18 hours of continuing education including a 6 hour Annual
Filing Season Program (AFSP)? Federal Tax Refresher (AFTR) course and exam; have a PTIN; consent to regulation under
Circular 230; there is no fee
Scenario: An AFSP preparer prepared and signed a client's No; AFSP preparers may represent clients only for returns they prepared and signed, and
return and wants to represent the client before an IRS Appeals only before revenue agents, customer service agents, and other front-line IRS employees
officer. Allowed? - and must be AFSP-qualified for both the year of the return and the year of
representation
Who may skip the Annual Federal Tax Refresher course and Anyone who passed Part 1 of the EA exam within the last 3 years
exam for AFSP purposes?
Scenario: Ron, an unenrolled preparer with no AFSP record, No; unenrolled preparers without AFSP have virtually no representation rights for any tax
prepared and signed a client's 2025 return. Can he represent return signed after December 31, 2015
the client in its audit?
What limited practice rights do appraisers, enrolled retirement Appraisers: no representation rights but can appear as a witness; enrolled retirement
plan agents, and enrolled actuaries have? plan agents and enrolled actuaries in good standing: may represent taxpayers only in
their area of expertise
Scenario: A student intern at a Low Income Taxpayer Clinic If supervised by a practitioner, the LITC student intern can request authorization from the
wants to represent a taxpayer. How is that possible? IRS to represent the taxpayer before the IRS
Scenario: A taxpayer asks her cousin (not a tax professional) to No; immediate family representation is limited to a spouse, child, parent, brother, or sister
represent her before the IRS as family. Allowed? - a cousin does not qualify
Who may represent an entity before the IRS through a special An officer of a corporation, association, or organized group; a general partner in a
relationship, and how does a fiduciary appear? partnership; a full-time employee for the employer; an individual for themselves; a
fiduciary (trustee, executor, personal representative, administrator, receiver, guardian)
stands in the position of the taxpayer and acts AS the taxpayer, not as a representative
Scenario: A client wants to name a CPA firm (the entity itself) No; corporations, partnerships, or any entity other than an individual cannot practice
as her representative. Allowed? before the IRS - nor can anyone the IRS has disqualified
Scenario: Maria prepares about 10 returns for pay each spring Yes; a tax preparer is anyone who prepares all or a substantial portion of a return for
as a casual side gig. Does she need a PTIN? compensation - full-time, part-time, or casual - and all paid preparers must have their
own PTIN
,Who is the "signer" of a return, and who does NOT need a The signer has primary responsibility for the accuracy of the return; no PTIN is needed by
PTIN? those performing only clerical (including data entry), mechanical, or administrative
support functions, or by volunteers (e.g. VITA)
Scenario: A 17-year-old wants to register for a PTIN to prepare No; PTIN registrants must be at least 18 years old, pay the fee, pass a limited tax
paid returns. Can she? compliance check (own personal and business returns filed), and renew the PTIN each
year
List the steps to become an EA via the examination path. Obtain a PTIN; apply for and pass the three-part SEE; within 1 year of passing, file Form
23 (Application for Enrollment to Practice Before the Internal Revenue Service); pass an
IRS background check and tax compliance check (no activity that would cause
suspension or disbarment under Circular 230)
Scenario: Dan passed all three SEE parts 14 months ago but No; Form 23 must be filed within 1 year of passing the exam
never filed Form 23. Can he still enroll on that exam?
What are the requirements for a former IRS employee to Obtain a PTIN; at least 5 years experience as an IRS employee in a position interpreting
become an EA without the exam? and applying the Internal Revenue Code and Regulations; apply within 3 years of leaving
that position; file Form 23; pass background and tax compliance checks
How often must EAs renew enrollment, and on what form? Every three years, using Form 8554, Application for Renewal of Enrollment to Practice
Before the Internal Revenue Service
What are the EA renewal windows by last digit of SSN? SSN ending 7, 8, 9, or no SSN: 11/1/2026 to 1/31/2027; ending 0, 1, 2, 3: 11/1/2027 to
1/31/2028; ending 4, 5, 6: 11/1/2028 to 1/31/2029
What are the EA CE requirements per cycle and per year? At least 72 hours of qualifying CE per 3-year renewal cycle, with at least 16 hours each
calendar year, including at least 2 hours of ethics annually
What are the CE requirements for a NEW EA during the first 2 hours of CE for each month of enrollment (including the month of enrollment), plus 2
(partial) enrollment cycle? hours of ethics annually, which also counts toward the total CE requirement
Scenario: Elizabeth became an EA on August 24th in the third At least 10 hours of CE (2 hours for each month from Aug through Dec), including 2 hours
year of her enrollment cycle. What CE must she complete by of ethics
December 31st?
How many minutes of instruction equal one CE credit hour, 50 minutes of instruction = 1 hour of credit; all courses must be IRS-approved and
and who must provide the courses? provided by IRS-approved CE sponsors
, Scenario: An EA teaches one 2-hour qualified EA course this 6 hours: 1 hour for each hour teaching (2) plus 2 hours of preparation for each hour
year. How much CE credit does she earn? taught (4); 6 hours is also the annual maximum for teaching
How long must an EA keep CE completion certificates, given At least 4 years from the date of renewal, even though CE providers electronically report
that providers report to the IRS? attendees' PTINs and names; the IRS has the right to audit your CE
For what reasons will the IRS waive CE requirements? Health issues; active military duty; absence from the United States for employment; other
reasons on a case-by-case basis
Scenario: An EA is notified she is being placed in inactive She has 60 days from notification to respond and provide proof of the missing
status for missing CE. What can she do, and what if she misses requirements; if a renewal cycle is missed, she must pay fees for the prior and current
a whole renewal cycle? cycles and provide proof of CE compliance
List reasons an EA can lose eligibility to practice. Not meeting CE requirements; not renewing the PTIN; requesting inactive or retired
status; being disciplined by state regulatory agencies (e.g. disbarred or losing a CPA
license)
When must a practitioner submit records or information to the Promptly, when lawfully requested, unless the practitioner reasonably believes they are
IRS? privileged; if the practitioner lacks them, he must promptly tell the IRS who has them; a
practitioner must not interfere with a lawful request
Scenario: A practitioner discovers his client omitted income on Promptly advise the client of the noncompliance, error, or omission AND advise of the
a filed return. What must he do? consequences of not correcting it; there is NO duty or right to report it to the IRS or to
correct it without the client's consent
In what three areas must a practitioner exercise due diligence? Preparing/assisting/approving/filing returns and documents in IRS matters; determining
the correctness of representations made to the Department of the Treasury; determining
the correctness of representations made to clients on matters administered by the IRS
When is a practitioner presumed to have exercised due When the practitioner used reasonable care in engaging, supervising, training, and
diligence when relying on another person's work product? evaluating the person
Which five tax benefits trigger Form 8867, Paid Preparer's Due American Opportunity Credit; Child Tax Credit/Additional Child Tax Credit; Credit for
Diligence Checklist? Other Dependents; Earned Income Credit; Head of Household filing status - Form 8867
must be completed and filed with any return claiming one of these
