Practices and Procedures — Enrolled Agent — SEE Part 3 (Representation, Practices and Procedures) Practice Test

This Enrolled Agent — SEE Part 3 (Representation, Practices and Procedures) Practices and Procedures practice set has 165 practice questions based on the official exam materials, each with an instant explanation.

Sample questions

Three questions from the Practices and Procedures bank with the correct answer and an explanation. The practice quiz above draws 30 questions at random from the same bank.

1. Under Treasury Circular 230, which of the following practitioners generally has UNLIMITED authority to represent any taxpayer before the IRS on any matter?

   • An enrolled agent in active status — Correct answer
   • An enrolled actuary
   • An enrolled retirement plan agent
   • An unenrolled preparer who holds a PTIN but no Annual Filing Season Program record of completion

   Explanation: Circular 230 §10.3 lists three categories with UNLIMITED practice before the IRS: attorneys (§10.3(a)), certified public accountants (§10.3(b)), and enrolled agents (§10.3(c)). An enrolled agent may represent any taxpayer, before any IRS function, on any type of matter. Enrolled actuaries (§10.3(d)) and enrolled retirement plan agents (§10.3(e)) may practice only within the narrow retirement/actuarial subject areas the regulation specifies, and an unenrolled preparer holding only a PTIN has no representation authority.

   Handbook: Practices and Procedures — Who May Practice (Circular 230 §10.3)

2. An enrolled agent in active status may represent taxpayers before the IRS ______.

   • on any matter, before any IRS office or function, and in any state — Correct answer
   • only in the state where the enrolled agent resides
   • only on returns the enrolled agent personally prepared and signed
   • only before the Examination function, but not Appeals or Collection

   Explanation: Under Circular 230 §10.3(c), an enrolled agent's practice privilege is unlimited: enrollment is a federal designation, so an EA may represent any taxpayer, on any tax matter, before any IRS office (Examination, Appeals, Collection, etc.) and is not restricted by state lines. The restrictions in the wrong answers — geography, only-returns-I-prepared, examination-only — describe the LIMITED practice of unenrolled/AFSP preparers under §10.7(c), not an enrolled agent.

   Handbook: Practices and Procedures — Scope of Enrolled Agent Practice (Circular 230 §10.3(c))

3. All of the following individuals have UNLIMITED authority to represent taxpayers before the IRS under Circular 230 EXCEPT:

   • An enrolled retirement plan agent — Correct answer
   • An attorney in good standing
   • A certified public accountant in good standing
   • An enrolled agent in active status

   Explanation: Circular 230 §10.3 grants unlimited practice to attorneys (§10.3(a)), CPAs (§10.3(b)), and enrolled agents (§10.3(c)). An enrolled retirement plan agent (§10.3(e)) has only LIMITED practice — confined to specified retirement-plan matters such as the Form 5300 and 5500 series and related issues — so an ERPA is the exception. Enrolled actuaries (§10.3(d)) are similarly limited.

   Handbook: Practices and Procedures — Categories With Unlimited Practice (Circular 230 §10.3)