IRS Enrolled Agent Exam Study Guide. Part 3: Representation, Practice, and Procedures

Transcription

1 IRS Enrolled Agent Exam Study Guide Part 3: Representation, Practice, and Procedures May 1, 2016 to February 28, 2017 Testing Tax Preparer Learning Systems, LLC

2 Introduction... 2 Examination Content Outline... 8 Course Content Practices and Procedures Practice before the IRS OPR and Practice before the Internal Revenue Service Who may practice? Compliance and suitability checks Requirements for Enrolled Agents Information to be furnished Knowledge of client's omission Assistance from or to disbarred or suspended persons Solicitation Fees Diligence as to accuracy Conflicting interests Negotiation of taxpayers checks Requirements for other written advice Standards Competence and covered opinions CPE requirements Term and renewal of status Prompt disposition of pending matters Return of clients records PTIN requirements Practitioner supervisory responsibilities Practice by former government employees Practice of law Best practices for tax advisors Sanctionable acts... 29

3 Incompetence and disreputable conduct includes, but is not limited to: Sanctions Receipt of information concerning practitioner Frivolous submissions Institution of proceeding Petition for Reinstatement Fraudulent transactions Rules and Penalties Assessment and appeal procedures for preparer penalties Types of penalties (e.g. negligence, substantial understatement, overvaluation) Furnishing copy to taxpayer Preparers identifying number Retain copy of the return Employees engaged or employed during a return period Preparer penalty involving the earned income credit Section Practice Questions Answers to Section Practice Questions Representation before the IRS Power of attorney Purpose of power of attorney Signature authority Proper completion of power of attorney Alternate forms of power of attorney (durable) Rules for client privacy Distinctions between power of attorney and tax information authorization Dropping representatives or withdrawal of representative Centralized Authorization File (CAF) number Conference and practice requirements (Pub 216) Building the case (preliminary work, taxpayers financial situation, and supporting documentation).. 56 Tax issue identification Transcripts from the IRS Potential for criminal aspects... 58

4 Taxpayer financial situation Taxpayer s ability to pay Discharge of the tax liability in bankruptcy IRS collection financial standards Supporting documentation Individuals Businesses Various Other documentation Fully Developed Cash T Account Method Legal authority and references Internal Revenue Code Regulation Revenue Ruling Revenue Procedure Private Letter Ruling General Counsel Memorandum Technical Advice Memorandum Notice Case law IRS publications, and forms and instructions Internal Revenue Manual Announcement Tax Treaties Related issues Statute of limitations Post-filing correspondence Third party correspondence Freedom of Information Act (FOIA) requests Tax avoidance vs. tax evasion Tax return disclosure statements Taxpayer Advocate Service... 92

5 Identity theft Higher levels of representation Section Practice Questions Answers to Section Practice Questions Specific Types of Representation Representing a taxpayer in the collection process Extension of time to pay Installment agreement Offer in compromise Collections appeal program and due process Abatements Audit reconsideration Decedent issues Federal Tax Lien and levy Case being reported Currently Not Collectable Summons Collection statute of limitations Trust fund recovery penalty Other taxpayer penalties Penalties and/or interest abatement Basis for having penalties abated Basis for having interest abated Interest recalculation Procedure for requesting abatement Representing a taxpayer in audits/examinations IRS authority to investigate IRS authority to fix time and place of investigation Examinations in general Innocent spouse Special provisions for partnership audits Preparer conflict of interest Representing a taxpayer before appeals

6 Appeals in general Issuance of 90-day letter Section Practice Questions Answers to Section Practice Questions Completion of the Filing Process Accuracy, information shared with taxpayer, and record maintenance Recordkeeping requirements Significance of signature and consequences of dishonesty List of returns prepared and length of time to retain returns and records EITC due diligence requirements Electronic filing Application process to be an e-file provider E-file mandate Advertising standards Definitions and responsibilities of an ERO Levels of infractions Revocation Sanctioning Appeal process E-file authorization and supporting documentation Rejected returns and resolution Identity theft procedures and resolution Section Practice Questions Answers to Section Practice Questions References