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IRS Special Enrollment Examination (SEE) for Enrolled Agents

2. Representation before the IRS: practice questions

Our Enrolled Agent (SEE) bank has 53 questions on this topic. Here are 5 of them with answers; the full mock exam draws from every topic, like the real one.

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Question 1

A fiduciary, such as an executor, notifies the IRS of the fiduciary relationship on:

  1. Form 2848
  2. Form 56
  3. Form 8821
  4. Form 4506
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B. Form 56 — A fiduciary stands in the taxpayer's shoes and does not act as a representative; Form 56 notifies the IRS of the relationship.

Question 2

A CP2000 notice:

  1. Means the return is under field audit
  2. Is a bill for tax already assessed
  3. Proposes changes based on a mismatch between the return and third-party information returns
  4. Is a statutory notice of deficiency that starts the 90-day period to petition
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C. Proposes changes based on a mismatch between the return and third-party information returns — The Automated Underreporter program issues CP2000 notices proposing adjustments. The taxpayer may agree, partly agree, or disagree with documentation by the response date.

Question 3

Which is one of the ten rights in the Taxpayer Bill of Rights?

  1. The right to retain representation
  2. The right to pay no interest on late payments
  3. The right to an automatic refund
  4. The right to choose the auditor
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A. The right to retain representation — The ten rights include the right to be informed, quality service, pay no more than the correct amount, challenge the IRS, appeal in an independent forum, finality, privacy, confidentiality, retain representation and a fair tax system.

Question 4

What is a CAF number?

  1. A number the IRS assigns to a representative in its Centralized Authorization File
  2. A taxpayer's ID for e-file
  3. A firm's e-file ID
  4. A preparer's PTIN shown on returns the representative signs
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A. A number the IRS assigns to a representative in its Centralized Authorization File — The CAF unit records authorizations. A representative's CAF number is entered on Form 2848 and Form 8821. It does not by itself authorize practice.

Question 5

A taxpayer who files a new Form 2848 for the same matter without retaining the prior power of attorney:

  1. Automatically revokes the earlier power of attorney for that matter
  2. Invalidates both forms
  3. Keeps both representatives with equal authority for that matter until revoked
  4. Must call the IRS to revoke the earlier one
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A. Automatically revokes the earlier power of attorney for that matter — A newly filed Form 2848 revokes earlier ones for the same matters unless the taxpayer checks the box to retain prior powers of attorney and attaches copies.

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