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You will need IRS Publication 470, IRS Circular 230, IRS Publication 947, and IRS Form 8275-R Instructions to complete the questions for this topic.

1. The following is a true statement regarding practitioners.

A. The practitioner must use reasonable efforts to identify and ascertain the facts, which may relate to future events if a transaction is prospective or proposed, and to determine which facts are relevant.
B. The practitioner can base an opinion on any unreasonable factual assumptions (including assumption as to future events).
C. The practitioner can base an opinion on any unreasonable factual representations, statements or findings or of the taxpayers or any other person.
D. It is reasonable for a practitioner to rely on a projection, financial forecast or appraisal if the practitioner knows or should know that it is incorrect or incomplete or was prepared by a person lacking skills or qualifications.

2. Any practitioner who has principal authority and responsibility for overseeing a firm's practice of providing advice concerning Federal tax issues must take reasonable steps to ensure that the firm has adequate procedures in effect for all members, associates, and employees. Any such practitioner will be subject to discipline for failing to comply with the requirements if

A. The practitioner takes reasonable steps to ensure that the firm has adequate procedures to comply with section 10.35, and individuals who are members of, associated with, or employed by, the firm are, or have engaged in a pattern or practice, in connection with their practice with the firm, fail to comply with such.
B. The practitioner knows or should know that one or more individuals that don't comply with section 10.35 and the practitioner fails to take prompt action to correct the noncompliance.
C. The practitioner does not give written advice as to the conduct of individuals who are not in compliance with section 10.35.
D. None of the above.

3. The Secretary of the Treasury, or delegate, after notice and an opportunity for a proceeding, may censure, suspend, or disbar any practitioner from practice before the Internal Revenue Service if the practitioner

A. Is shown to be incompetent or disreputable.
B. Fails to comply with any regulation under the prohibited conduct standards or with intent to defraud.
C. Willfully and knowingly misleads or threatens a client or prospective client.
D. Any of the above.

4. Incompetence or disreputable conduct for which a practitioner may be sanctioned includes

A. Willfully disclosing or otherwise using a tax return or tax return information in a manner authorized by the Internal Revenue Code.
B. Failing to sign a tax return prepared by the practitioner when the practitioner's signature is not required by the Federal tax laws.
C. Contemptuous conduct in connection with practice before the Internal Revenue Service, including the use of abusive language or making false accusations or statements, knowing them to be false.
D. Giving false or misleading information to the Department of the Treasury or any officer or employee thereof, or to any tribunal authorized to pass upon Federal tax matters, when not knowing the information to be false or misleading.

5. A complaint is not sufficient to just fairly inform the respondent of the charges brought so that the respondent is able to prepare a defense.

True False

6. To maintain active enrollment to practice before the Internal Revenue Service, each individual is required to have the enrollment renewed. The following statement is correct regarding enrollment renewal.

A. If you don't receive notification from the Director of the Office of Professional Responsibility of the renewal requirement it means the individual is not required to renew.
B. The effective date of renewal is the first day of the fourth month following the close of the period for renewal.
C. A minimum of 42 hours of continuing education credit must be completed during each enrollment cycle.
D. A minimum of 10 hours of continuing education credit must be completed during each enrollment year of an enrollment cycle.

7. To qualify for continuing education credit for an enrolled agent, a course of learning must

A. Be a qualifying program designed to enhance professional knowledge in Federal taxation or Federal taxation related matters.
B. Be a qualifying program consistent with the Internal Revenue Code and effective tax administration.
C. Be sponsored by a qualifying tax education sponsor.
D. All of the above.

8. A practitioner may take acknowledgements, administer oaths, certify papers, or perform official acts as a notary public with respect to any matter administered by the Internal Revenue Service.

True False

9. A practitioner shall not represent a client before the Internal Revenue Service if the representation involves a conflict of interest. A conflict of interest exists if

A. There is no significant risk that the representation of one or more clients will be materially limited by the practitioner's responsibility to another client, a former client or a third person, or by a personal interest of the practitioner.
B. The representation of one client will be directly adverse to another client.
C. The representation is prohibited by law.
D. Each affected client waives the conflict of interest and gives informed consent.

10. Tax advisors should provide clients with the highest quality representation concerning Federal tax issues by adhering to best practices in providing advice and in preparing or assisting in the preparation of a submission to the Internal Revenue Service. Best practice includes

A. Advising a client to take a position on a document, affidavit or other paper submitted to the Internal Revenue Service.
B. Advising a client to submit a document, affidavit or other paper to the Internal Revenue Service even if this impedes the administration of the Federal tax laws.
C. Establishing the facts, determining which facts are relevant, evaluating the reasonableness of any assumptions or representations, relating the applicable law to the relevant facts, and arriving at a conclusion supported by the law and the facts.
D. Advising a client to take any step necessary to avoid the payment of tax at all cost.

12. In cases where any part of the understatement of the tax liability is due to a willful attempt by the return preparer to understate the liability, or if the understatement is due to reckless or intentional disregard of the rules or regulations by the tax preparer, the prepare is subject to a

A. $5,000 penalty.
B. Penalty of 50% of income derived or to be derived.
C. $1,000 penalty.
D. Greater or A or B above.

13. A penalty will not be imposed on any part of an underpayment if there was reasonable cause for your position and you acted in good faith in taking that position. However, if you failed to keep proper books and records or failed to substantiate items properly, you

A. Can avoid the penalty by disclosure.
B. Cannot avoid the penalty by disclosure.
C. Cannot file Form 8275-R.
D. Should just pay the preparer penalty.

14. The penalty for reckless or intentional disregard of a regulation may be avoided by disclosure only if the position represents a good faith challenge to the validity of the regulation and has a reasonable basis. Generally, the accurate-related penalty of any portion of a tax underpayment attributable to negligence or disregard of rules or regulations is

A. 10%.
B. 20%.
C. 40%.
D. 50%.

15. An understatement is the excess of the amount of tax required to be shown on the return over the amount of tax shown on the return for the tax year, reduced by any rebates. There is an substantial understatement if the amount of the understatement for any year exceeds

A. 10% of the tax required to be shown on the return for the tax year.
B. $5,000 ($10,000 for a corporation).
C. $10,000,000.
D. The greater of A or B above.

16. Any individual engaged in limited practice before the IRS who is involved in disreputable conduct may be

A. Disbarred or suspended, or censured.
B. Dismissed.
C. Jailed.
D. Forced to meet with the IRS.

17. The following un-enrolled individual can represent the specified taxpayers before the IRS, provided this individual presents satisfactory identification.

A. A family member.
B. An Officer of a Corporation.
C. An employee representing employer.
D. Any of the Above.

18. In general, individuals who are not eligible or who have lost the privilege as a result of certain actions cannot practice before the IRS. If an individual loses eligibility to practice, his or her power of attorney will be

A. Discarded.
B. Return to him by certified mail.
C. Will not be recognized by the IRS.
D. (As long as he files one) recognized by the IRS.

19. As for negotiation of taxpayer refund checks, Practitioners who are income tax return preparers (un-enrolled) 

A. Can endorse any refund check issued to the taxpayer.
B. Must not endorse or otherwise negotiate (cash) any refund check issued to the taxpayer.
C. Can negotiate (cash) any refund check issued to the taxpayer.
D. Both A and C above.

20. Being convicted of any criminal offense under the revenue laws or of any offense involving dishonesty or breach of trust is

A. Acceptable conduct if offense was committed in a state other than the one you practice in.
B. Alright as long as it does not directly involve your client.
C. Not considered disreputable conduct.
D. Considered disreputable conduct.

21. Who presides over a hearing on a complaint for disbarment based on a violation of the laws or regulations governing practice before the IRS?

A. The Commissioner of the IRS.
B. Office of Professional Responsibility.
C. A United States Tax Court Judge.
D. The Secretary of the Treasury.

22. An appeal from the initial decision ordering disbarment is made to which of the following:

A. The Secretary of the Treasury.
B. The Administrative Law Judge.
C. Office of Professional Responsibility.
D. The United States Tax Court.

23. Individuals can lose their eligibility to practice before the IRS by

A. Not meeting the requirements for renewal of enrollment (such as continuing professional education).
B. Requesting to be placed in an inactive retirement status.
C. Being suspended or disbarred by state authorities to practice as an attorney or certified public accountant.
D. Any of the above.

24. A practitioner who knows that his or her client has not complied with the revenue laws or has made an error or omission in any return,

A. Has the responsibility to advise the client promptly of the noncompliance.
B. Has the responsibility to advise the client of the consequences of the noncompliance.
C. Has to do what the client tells him to do even if it is against the law.
D. Both A and B above.

25.  An un-enrolled return preparer is permitted to appear as your representative only before customer service representatives, revenue agents, and examination officers, with respect to an examination regarding the return he or she prepared. An un-enrolled tax return preparer can

A. Represent a taxpayer before other offices of the IRS, such as collection or appeals including the Automated Collection System (ACS) unit.
B. Execute closing agreements or waivers.
C. Extend the statutory period for tax assessments or collection of tax.
D. None of the above.

26. If the un-enrolled tax return preparer does not meet the requirements for limited representation he or she will be limited to receiving or inspecting your taxpayer information. 

True False

27. Preparing a tax return, furnishing information at the request of the IRS, or appearing as a witness for the taxpayers is considered practice before the IRS.

True False

28. The following is considered practice before the IRS

A. Communicating with the IRS for a taxpayer regarding the taxpayer's rights, privileges, or liabilities under laws and regulations administered by the IRS.
B. Representing a taxpayer at conferences, hearings, or meetings with the IRS.
C. Preparing and filing documents with the IRS for a taxpayer or corresponding and communicating with the IRS.
D. All of the above.

29. A power of attorney is not required in some situations when dealing with the IRS. The following situation does require a power of attorney. 

A. Authorizing the disclosure of tax return information through Form 8821.
B. Allowing the IRS to discuss return information with a third party designee.
C. Representing a taxpayer through a nonwritten consent.
D. None of the above.

30. After a valid power of attorney is filed, the IRS will recognize your representative. However, if it appears the representative is responsible for unreasonably delaying or hindering the prompt disposition of an IRS matter by failing to furnish, after repeated requests, non-privileged information, the IRS can contact the taxpayer directly. If the representative engages in such conduct, the matter can be referred to the Office of Professional Responsibility for consideration of possible disciplinary action.                       

True False

31. The one responsible for administering and enforcing the regulations governing practice before the IRS is

A. The Centralized Authorization File (CAF) System.
B. The enrolled agent.
C. The Office of Professional Responsibility.
D. The Society of Enrolled Agents.

32. The following is beyond the scope of authority permitted an unenrolled preparer:

A. Executing claims for refunds.
B. Executing closing agreements with respect to a tax liability or specific matter.
C. Receiving checks in payment of any refund of Internal Revenue taxes, penalties, or interest.
D. All of the above.

33. The unenrolled preparer who has been determined ineligible for limited practice before the Internal Revenue Service may request, after 6 months following the notice of final determination of ineligibility or decision on appeal, that eligibility for limited practice be reinstated.  

True False

34. An unenrolled preparer may, in a dignified manner, publish, use, or broadcast through any means of communication

A. The names of individual associated with the firm.
B. A factual description of the services offered.
C. Appropriate fee information.
D. Any of the above.

35. The unenrolled preparer will not be expected to recognize questions, issues and factual situations as expected of enrolled agents.

True False

36. An unenrolled individual who signs a return as its preparer may act as the taxpayer's representative

A. If accompanied by the taxpayer.
B. By filing a written authorization from the taxpayer.
C. Either A or B above.
D. As long as the unenrolled preparer has the required tax knowledge that is expected of enrolled agents.

37. As long as the unenrolled tax preparer does not use false, fraudulent, misleading or deceptive advertising, he or she can make uninvited solicitation of employment in matters relating to the Internal Revenue Service.

True False

38. An examining officer, or other Service officer or employee who has reason to believe that an unenrolled preparer's conduct has been or is such as would render the preparer ineligible to appear as the taxpayer's representative before the Internal Revenue Service shall communicate this information to

A. The District Director of the taxpayer.
B. The IRS Field Office.
C. The taxpayer.
D. The unenrolled preparer.

39. Any unerolled preparer who knows that the client has not complied with the revenue law, or that the client has made an error in or omission from any return, document, affidavit, or other paper that the client is required by law to execute, shall

A. Advise the Office of Professional Responsibility promptly of the noncompliance.
B. advise the client promptly of the fact of the noncompliance, error or omission.
C. Correct the error promptly and he or she does not need to notify the client.
D. Notify the client of the error only if it exceeds $50.

40. This is any person who is a member in good standing of the bar of the highest court of any state, territory, or possession of the United States, including a commonwealth, or the District of Columbia.

A. Certified Public Accountant.
B. An Attorney.
C. A practitioner.
D. The Commissioner.

41. Enrollment as an enrolled agent based on an applicant's formal employment with the Internal Revenue Service may be

A. Unlimited scope.
B. Limited to permit the presentation of matters only of the particular class for which the applicant's former employment has qualified the applicant.
C. Limited to permit the presentation of matters only before the particular unit or division of the Internal Revenue Service for which the applicant's former employment has qualified the applicant.
D. Any of the above.

42. Individuals may not appear on their own behalf before the Internal Revenue Service that is why we have enrolled agents.

True False

43. An applicant for enrollment as an enrolled agent who is requesting such enrollment based on former employment with the Internal Revenue Service must have had a minimum number of years of continuous employment with the Internal Revenue Service during which the applicant must have been regularly engaged in applying and interpreting the provisions of the Internal Revenue Code and the regulations relating to income, estate, gift, employment, or excise taxes. Minimum years of continuous employment must be

A. 2 years.
B. 3 years.
C. 5 years.
D. 7 years.

44. The director of the Office of Professional Responsibility must inform the EA enrollment applicant as to the reason for any denial of an applicant for enrollment. The applicant may

A. Petition to retake the EA examination to be reconsidered.
B. Within 30 days after receipt of the notice of denial of enrollment, file a written appeal of the denial with the Secretary of the Treasury or his or her delegate.
C. Be granted temporary recognition to practice pending a determination as to whether enrollment to practice should be granted.
D. Within 6 months after receipt of the notice of denial of enrollment, file a written appeal of denial.

45. Each individual applying for renewal of their EA enrollment must retain for a period of three years following the date of renewal of enrollment the information required with regard to qualifying continuing professional education hours. Such information does not include

A. The name of the sponsoring organization.
B. Location, title of and description of the content of the program.
C. The publisher information of the study material used.
D. Written outlines, course syllabi, textbook, and/or electronic materials provided or required for the course.

46. Subject to certain limitations, an individual who is not a practitioner may represent a taxpayer before the Internal Revenue Service, even if the taxpayer is not present, provided the individual presents satisfactory identification and proof of his or her authority to represent the taxpayer. Such as in the following situation.

A. An individual may represent a member of his or her immediate family.
B. A regular full-time employee of an individual employer may represent the employer.
C. A general partner or a regular full-time employee of a partnership may represent the partnership.
D. All of the above.

47. Any individual may prepare a tax return, appear as a witness for the taxpayer before the Internal Revenue Service, or furnish information at the request of the Internal Revenue Service or any of its officers or employees.

True False

48. An individual who prepares and signs a taxpayer's tax return as the preparer, or who prepares a tax return but is not required (by the instructions to the tax return or regulations) to sign the tax return may represent the taxpayer before revenue agents, customer service representatives or similar officers and employees of the Internal Revenue Service during an examination of the taxable year or period covered by that tax return,

A. And this right permits such individual to represent the taxpayer before appeal officers.
B. And this right permits such individual to represent the taxpayer before employees of the Internal Revenue Service or the Department of Treasury.
C. But, this right does not permit such individual to represent the taxpayer before appeals officers, revenue officers, counsel or similar officers or employees of the Internal Revenue Service.
D. Is subject to rules of general applicability regarding standards of conduct and other matters as the Director of the Office of Professional Responsibility prescribes.

49. A practitioner must, on a proper and lawful request by a duly authorized officer or employee of the Internal Revenue Service, promptly submit records or information in any matter before the Internal Revenue Service

A. Always.
B. Only after being authorized by the taxpayer to do so.
C. Unless the practitioner believes in good faith and on reasonable grounds that the records or information are privileged.
D. None of the above.