Part 4 - Section A - Questions 1 - 40 - True or False Tax Law Practice

Sep 26, 2026

Part 4, Section A presents 40 true-or-false statements for practice on U.S. tax practice rules and taxpayer representation. Topics include authority to practice before the IRS for enrolled actuaries and enrolled agents, eligibility requirements tied to IRS examinations, limits on where licensed professionals may practice, and rights related to suspension or disbarment. Additional items address duties to disclose information, confidentiality, prohibited fee arrangements, repeat examination rules, appeals procedure sequencing, and penalties and substantiation requirements for common tax situations.

LanguageEnglish

CategoryExam

FormatPDF

Pages13

Reading Time33 min

AccessFree to download

Questions 1 - 40

True or False statements on IRS practice rules

Representation eligibility and restrictions

Suspension, disbarment, hearings, and appeals

Penalties and recordkeeping scenarios

Part 4 Section A: Questions 1 – 40 The following statements are either true or false. Select the most appropriate answer and darken the box under A for true or under B for false. 1. Enrolled actuaries are authorized to practice before the IRS for all matters connected with a presentation to the IRS or any of its offices or employees relating to a client's rights, privileges, or liabilities under the Internal Revenue laws. 2. A person is eligible to be an enrolled agent only by demonstrating a special competence in tax matters by a written IRS examination and by refraining from engaging in any conduct that would justify suspension or disbarment. 3. Attorneys and accountants licensed to practice in a particular state who are in good standing in that state may practice before the IRS only in that state. 4. There is no right to appeal a decision of suspension or disbarment of practice before the IRS. 5. A non-signing preparer of an individual's tax return is eligible to represent the taxpayer involving an IRS examination for the taxable year covered by that return without being eligible to practice before the IRS. 6. A Circular 230 practitioner must, when requested by the Director of Practice, provide the Director with any information he may have concerning violation of Circular 230 regulations by any person. An exception to this duty is made if the practitioner believes in good faith and on reasonable grounds that such information is privileged or that the request therefor is of doubtful legality. 7. An enrolled agent can accept the client's statement in preparing a tax return without making any inquiries. 8. If an enrolled agent has knowledge that a client has filed an erroneous tax return, the client must be advised to correct the error. 9. An enrolled agent may not, in practice before the Internal Revenue Service, knowingly and directly or indirectly accept employment as associate, correspondent, or subagent from, or share fees with, any person who is under disbarment or suspension from practice before the Internal Revenue Service. 10. A Circular 230 practitioner may not, under any circumstances, charge a contingent fee for preparing a tax return or claim for refund. 11. An enrolled agent is permitted to charge any amount of fee to represent a client before the IRS. 12. An advertisement by an enrolled agent depicting the official IRS insignia is proper as long as the enrolled agent is currently enrolled with the Director of Practice. 13. An enrolled agent is permitted to publish the availability of a written schedule of fees for representation of the taxpayer before the IRS. 14. A certified public accountant who is suspended from practice in Puerto Rico can continue to practice before the Internal Revenue Service in Alaska. 15. A person disbarred from practice before the IRS can apply for reinstatement within 10 years following such disbarment. 16. An enrolled agent, in order to avoid disbarment or suspension proceedings, may offer his consent to suspension or his resignation. The Director of Practice must accept this offer. 17. The hearing for suspension or disbarment of a person authorized to practice before the IRS is before the U.S. Tax Court. 18. A disbarrment or suspension proceeding against an individual is begun with a complaint signed by the Director of Practice and delivered or mailed to the individual. 19. A taxpayer who has been audited for the same items in either of two preceding years, had no change proposed on his or her tax liability, and receives notice that his or her return has been selected for examination may contact the Internal Revenue Service and request that the examination be discontinued under the repeat examination rule. 20. A taxpayer can appeal to a court only after an unsuccessful appeal before an Internal Revenue Service Appeals Officer. 21. An enrolled agent is unqualifiedly permitted to represent the partnership and all of its individual partner

FAQs

What do the instructions for Questions 1–40 require you to do?

Determine whether each statement is true or false and select the most appropriate answer by marking the corresponding box for true (A) or false (B).

What authority limitations are addressed for practitioners before the IRS?

The statements cover who is authorized to practice before the IRS, eligibility requirements (including examinations for enrolled agents), and restrictions related to practicing in certain jurisdictions or while subject to suspension or disbarment.

Do the questions cover suspension or disbarment procedures and appeal rights?

Yes. The items discuss how suspension/disbarment proceedings begin, the forum for hearings, whether appeals can be taken to a court, and related procedural rights such as the repeat examination rule.

Sep 26, 2026

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