Table of Contents

Course Learning Objectives v

Introduction to the Course v

Chapter 1  IRS Practice 8

Chapter Learning Objectives 8

Introduction. 8

Professional Practice 8

Who is Permitted to Practice before the IRS. 8

Professionals with Limited Practice Rights 9

Enrolled Actuaries 9

Enrolled Retirement Plan Agents 9

Registered Tax Return Preparers 10

Professionals with Unlimited Practice Rights 10

Other Representation. 11

Representation Based on Taxpayer Relationship. 11

Who may not Practice before the IRS. 11

Loss of Eligibility. 11

Failing to Meet Renewal Requirements 12

Enrolled Agent Renewal Cycles 12

Requesting Inactive Retirement Status 12

Suspension and Disbarment 13

Incompetence and Disreputable Conduct 13

Summary. 14

Chapter 1 Review Questions 16

Chapter 2  Representing a Client before the IRS. 17

Chapter Learning Objectives 17

Introduction. 17

Power of Attorney. 17

Acts Performed Under a Power of Attorney. 18

Substituting or Delegating Authority. 18

Agent Authorizing IRS to Disclose Returns to Others 19

When a Power of Attorney is Required. 19

Non-IRS Power of Attorney. 19

Perfecting a Power of Attorney. 20

Processing a Non-IRS Power of Attorney. 21

Common Reasons for IRS Rejection of a Power of Attorney. 21

Signatures and/or Signature Dates Missing. 21

Lack of Specificity as to Authorized Acts 22

When the Matter isnt a Tax Matter 23

Civil Penalties 23

Filing and Updating a Power of Attorney. 24

Retention/Revocation of Prior Power(s) of Attorney. 26

Revocation of Power of Attorney/Withdrawal of Representative 26

Preparing IRS Form 2848. 27

Taxpayer Information  Line 1. 27

The Individual Client 27

Clients Filing 1040 Schedule C. 27

Clients Filing a Joint Return. 28

Corporate, Partnership or Association Clients 28

Corporate Clients Filing Consolidated Tax Returns 28

Exempt Organization Clients 28

Trust Clients 28

Representing a Decedent 28

Estate Clients 29

When the Matter is a Gift 29

Employee Plan Clients 29

Representative  Line 2. 29

Multiple Representatives 29

Centralized Authorization File (CAF) Number 30

Preparer Tax Identification Number (PTIN) 30

Students in Low Income Taxpayer Clinics (LITCs) and Student Tax Clinic Program (STCP) 30

Acts Authorized  Line 3. 30

Specific Use Not Recorded on Centralized Authorization File  Line 4. 31

Additional Acts Authorized  Line 5a 32

Specific Acts not Authorized  Line 5b. 33

Retention/Revocation of Prior Power(s) of Attorney  Line 6. 33

Taxpayers Signature  Line 7. 34

Declaration of Representative  Part II 34

Summary. 35

Chapter 2 Review Questions 37

Answers to Chapter Review Questions 38

Chapter 1 Review Questions Feedback. 38

Chapter 2 Review Questions Feedback. 40

Appendix. 42

Final Examination. 46

CPASelfstudy.com Course Evaluation. 48