- Which of the following is correct regarding the authority of a non-credentialed tax return preparer who holds a valid Annual Filing Season Program Record of Completion for 2025 to represent taxpayers before the IRS?
Answer: The preparer may represent taxpayers only in an examination of a return the preparer prepared and signed during the period covered by the Record of Completion, and only before revenue agents, customer service representatives, and similar IRS employees.
References: Treasury Department Circular 230 § 10.3 (who may practice before the IRS); IRS Pub. 947, Practice Before the IRS and Circular 230; Annual Filing Season Program (AFSP) requirements. An unenrolled preparer with a valid AFSP Record of Completion may represent taxpayers only in an examination, before revenue agents, customer service representatives, and similar IRS employees, of a return the preparer actually prepared and signed during the period covered by the Record of Completion. The authority does not extend to the IRS Office of Appeals, collection matters such as Collection Due Process hearings, or the U.S. Tax Court, and a Form 2848 cannot enlarge it. Choice A correctly describes that limited authority. Choice B is wrong because a Collection Due Process hearing is a collection matter and is outside the limited AFSP representation right even for a return the preparer prepared. Choice C is wrong because an express grant in a Form 2848 cannot confer a practice right the preparer does not otherwise hold under Circular 230 or the AFSP. Choice D is wrong because eligibility to practice is personal to the individual; supervision or co-signature by an enrolled agent does not authorize an ineligible preparer to practice in broader proceedings.
- Which of the following is correct after the new Form 2848 is submitted to the IRS?
Answer: Adena's authorization is revoked, because a new Form 2848 recorded on the CAF for the same matter revokes the earlier one unless the line 6 retention box is checked.
Instructions for Form 2848, line 6 (Retention/Revocation of Prior Power(s) of Attorney). A power of attorney recorded on the CAF generally revokes any earlier power of attorney recorded for the same matter; to keep the earlier one in effect, the taxpayer must check the line 6 box and attach a copy of it. The decisive facts are that the new form covers the same matter and year, is recorded on the CAF, and leaves the retention box unchecked. Choice A is correct. Choice B is wrong because it states the reverse of the default: no separate revocation is needed. Choice C is wrong because Form 8821 is a tax information authorization and is not used to revoke a power of attorney. Choice D is wrong because the taxpayer may appoint a new representative directly; a substitution by the existing representative is not required.
- Which of the following is correct regarding the enrolled agent's authority to sign the return?
Answer: The Form 2848 does not, by itself, authorize the enrolled agent to sign the taxpayer's individual income tax return; being unavailable on the filing deadline is not a basis for an agent to sign it.
Treas. Reg. § 1.6012-1(a)(5); Instructions for Form 2848, line 5a. A Form 2848 authorizes representation before the IRS; it does not by itself authorize the representative to sign the taxpayer's income tax return. An agent may sign an individual income tax return only if the taxpayer cannot sign because of disease or injury, is continuously absent from the United States for at least 60 days before the due date, or has specific IRS permission for other good cause, and the Form 2848 must then grant that authority on line 5a. Being unavailable on the filing deadline is not one of these circumstances. Choice C is correct. Choice A is wrong because a power of attorney under Form 2848 does not include authority to sign a return unless line 5a grants it, and that authority may be granted only in the circumstances the regulation lists. Choice B is wrong because a written statement from the taxpayer does not create a permitted circumstance; without disease, injury, extended absence from the United States, or IRS permission, the regulation does not allow an agent to sign. Choice D is wrong because a business reason for being unavailable is not a permitted circumstance, and e-filing with the agent's PTIN does not affect who may sign the taxpayer's return; the PTIN identifies the paid preparer, not a signing agent.
- Which of the following is correct regarding the refund?
Answer: The refund check will be issued to the taxpayer, and the enrolled agent may not endorse or negotiate it or accept the refund into an account the agent controls.
Circular 230 § 10.31; Form 2848, line 5b and its instructions. A practitioner may not endorse or otherwise negotiate a government check issued to a client for a federal tax liability, including by directing or accepting payment into an account the practitioner owns or controls, and a Form 2848 does not authorize a representative to do so. The decisive fact is that the agent controls the trust account; the taxpayer's endorsement and consent do not change that. Choice A is correct. Choice B is wrong because a power of attorney covers acts in the tax matter, not receipt of the client's refund. Choice C is wrong because depositing the check into an account the agent controls is accepting payment that § 10.31 prohibits, whatever the taxpayer signs. Choice D is wrong because the power of attorney rules do not delay the refund; it is issued to the taxpayer.
- For 2025, which of the following is correct regarding who must sign a Form 2848, Power of Attorney and Declaration of Representative?
Answer: Spouses who filed a joint return must each submit a separate Form 2848 for a matter involving that return, even when both spouses authorize the same representative.
Governing authority: Instructions for Form 2848, Line 1 and Line 7. If spouses or former spouses submit powers of attorney in connection with a joint return, they must each submit separate Forms 2848, even if they are authorizing the same representative, and each spouse signs his or her own form. The representative must sign the Part II Declaration of Representative. Choice B states the rule. Choice A gives the spouse listed first on the return an authority the instructions do not give: each spouse authorizes representation only for himself or herself. Choice C misstates the form rule: spouses may not share one Form 2848, and a separate form signed by one spouse is valid as to that spouse. Choice D is wrong because the representative must sign the Part II declaration in every case; the taxpayer's signature alone is not enough.
- Which of the following is correct regarding a representative's substitution of another representative to appear before the IRS?
Answer: A representative may substitute or add a representative only if the taxpayer gave written permission or checked the line 5a box, and the representative then signs a new Form 2848 on the taxpayer's behalf.
Governing authority: Instructions for Form 2848, Line 5a (Substituting or adding a representative). Unless the power of attorney specifically provides otherwise, it does not include the power to substitute or add another representative. A representative may do so only if the taxpayer gives written permission or delegates the authority by checking the line 5a box. The representative then sends in a new Form 2848, signs it on the taxpayer's behalf, and submits it with a copy of the written permission or the original Form 2848 that delegated the authority; the new representative signs the Part II declaration. Choice B states the rule. Choice A drops the requirement of the taxpayer's written authority: sharing a credential does not permit a substitution. Choice C is wrong because the permission must be in writing or given on line 5a; an oral consent at a conference does not satisfy the rule. Choice D is wrong because a substitute's authority is limited to the matters and periods on the power of attorney.
- Which of the following is correct regarding Renata's authority?
Answer: Renata may represent the client only if the client files a Form 2848 naming Renata; Form 8821 authorizes disclosure of tax information to her but does not authorize her to represent the client at the examination.
IRC § 6103(c); Circular 230 § 10.7(c)(1)(viii); Form 2848 and Form 8821 instructions. Form 8821 is a tax information authorization: it permits the named designee to receive and inspect confidential tax information for the listed matters and periods, but it does not authorize the designee to represent the taxpayer before the IRS. Practice before the IRS, including appearing at an examination in a representative capacity, requires a written power of attorney (Form 2848) naming a person eligible to practice. Renata is eligible for limited practice because she prepared the signed return and holds a valid PTIN and a current Annual Filing Season Program Record of Completion, but the client's Form 8821 does not give her authority to act as the client's representative. Choice A misstates the effect of Form 8821, treating a disclosure authorization as the written authorization for representation. Choice B overstates the prohibition: unenrolled return preparers who meet the PTIN and Record of Completion requirements may represent taxpayers in examinations of returns they prepared. Choice C misstates the requirement: appearing at the examination and speaking on the client's behalf is practice before the IRS and requires a POA; having signed the return does not confer that right.
- Which of the following is correct?
Answer: File Form 8821 for the transcript access; it will not make the daughter a recognized representative for a collection due process hearing or any other IRS proceeding.
Choice C is correct. Form 8821 authorizes the IRS to disclose return information to an appointee and permits the appointee to inspect and receive information, but it does not authorize representation. The daughter cannot be a recognized representative for a collection due process hearing because she is not eligible to practice before the IRS, and Form 8821 cannot change that. Choice A is wrong because Form 2848 is for authorized representatives and does not make an ineligible person eligible. Choice B is wrong because Form 56 is for fiduciaries, and the daughter is not acting in a fiduciary capacity. Choice D is wrong because the third-party designee box is a limited disclosure authorization, not a power of attorney.
- Which of the following is the correct reason the IRS will not accept the Form 2848 as drafted?
Answer: A Form 2848 must identify specific tax matters and tax periods, and an authorization that purports to cover matters or years not yet identified is not a valid power of attorney for IRS purposes.
Form 2848 instructions, line 3. A power of attorney must describe the specific tax matter or matters and the specific tax period or periods for which the representative is authorized to act, and the IRS will not accept a general authorization such as 'all tax years' or 'all tax matters.' The client may list both the 2023 examination and the 2021 collection matter on the same Form 2848, but the catch-all language does not identify a tax matter or period and is not a valid grant of authority. Choice B misstates the rule: Form 2848 provides multiple lines so that several matters and periods may be listed on one form. Choice C misstates the rule: a taxpayer may file a Form 2848 before any matter is pending (for example, for the current tax year), and it is maintained in the Centralized Authorization File for future use. Choice D misstates the rule: Form 2848 does not require notarization; the taxpayer's signature and the representative's declaration are sufficient, and listing multiple matters does not change the form's character.
- For 2025, which of the following is correct regarding the scope of authority granted by a Form 2848, Power of Attorney and Declaration of Representative?
Answer: A Form 2848 authorizes the representative to perform acts the taxpayer can perform for the listed matters and periods, including receiving and inspecting confidential tax information, but not to negotiate a refund check issued to the taxpayer.
References: Form 2848, Power of Attorney and Declaration of Representative, Instructions (scope of authority granted). A Form 2848 authorizes the representative to perform acts the taxpayer can perform with respect to the tax matters and periods listed, including receiving and inspecting the taxpayer's confidential return information. The instructions are explicit that this authority does not include negotiating or endorsing the taxpayer's refund check; refund checks are issued to the taxpayer. Choice D states the scope and the refund-check limit correctly. Choice A is wrong because the prohibition on negotiating a taxpayer's refund check is not lifted by the form of the payee line or the representative's credential. Choice B is wrong because practice before the U.S. Tax Court is governed by the Tax Court's own admission rules; a Form 2848 is an IRS administrative authorization and does not admit anyone to practice before the Tax Court. Choice C is wrong because a power of attorney does not authorize the representative to direct a refund into an account the representative controls; the IRS permits direct deposit only into accounts held in the taxpayer's name.
- Which of the following is correct regarding Dana's authority?
Answer: Dana's authority over the 2021 collection matter terminates, but Dana remains authorized for the 2022 examination until that matter is resolved or the IRS receives a revocation or new Form 2848 covering it.
Form 2848 instructions (Revocation). Filing a new Form 2848 for the same tax matter and tax period revokes an earlier Form 2848 for that same matter and period; it does not revoke authorizations for other matters or periods. Because Priya's Form 2848 lists only the 2021 collection matter, Dana's authority over that matter has ended. Dana's separate authority over the 2022 examination continues until that matter is resolved, Dana withdraws, or the IRS receives a revocation or a new Form 2848 covering the 2022 examination. Choice A overstates the rule: a new power of attorney revokes prior powers of attorney only as to the matters and periods it covers. Choice C misstates the mechanics: a separate written revocation is not required when a new Form 2848 covering the same matter and period is filed, and the revocation operates regardless of whether the new form names a different representative. Choice D confuses revocation with withdrawal: a taxpayer may revoke a power of attorney at any time, and the IRS recognizes the new power of attorney when it is filed; a representative's withdrawal is a separate act and is not required for the revocation to take effect.
- Which of the following is correct regarding revocation of a power of attorney for a matter before the IRS?
Answer: A new Form 2848 recorded on the CAF generally revokes earlier powers of attorney recorded for the same matters, unless the line 6 box is checked and copies are attached.
Governing authority: Instructions for Form 2848, Line 6 and Revocation of Power of Attorney/Withdrawal of Representative. If the IRS records a new power of attorney on the CAF, it generally revokes any earlier power of attorney recorded for the same matter; a specific-use form revokes only an earlier form on file with the same office for the same matters. A taxpayer who wants to keep existing powers of attorney checks the line 6 box and attaches a copy of each. Choice A states the rule. Choice B is wrong because a revocation must be written and signed; an oral statement on a telephone call does not revoke the power. Choice C misstates the revocation procedure: a taxpayer who does not name a new representative writes REVOKE across the top of a copy of the power of attorney, signs and dates it, and sends it to the IRS, or sends a signed statement of revocation. Choice D is wrong because a representative withdraws by writing WITHDRAW across a copy of the power of attorney, signing and dating it, and sending it to the IRS; the taxpayer's consent is not required.
- Which of the following is correct regarding the Centralized Authorization File (CAF)?
Answer: A Form 2848 marked for specific use and filed with the office where a case is pending is not recorded on the CAF and is honored only for that specific case.
References: Form 2848, Power of Attorney and Declaration of Representative, Instructions, Specific Use Not Recorded on CAF; Form 8821, Tax Information Authorization, Instructions. The CAF is the IRS's national record of authorizations. A Form 2848 filed with the IRS is ordinarily recorded on the CAF, but a power of attorney limited to a specific matter and filed with the office handling the matter is not recorded on the CAF; it is kept in the case file and honored only for that specific matter. Choice B states this rule correctly. Choice A is wrong because a Form 8821 is normally also recorded on the CAF; the CAF contains both powers of attorney and tax information authorizations. Choice C is wrong because a power of attorney may be filed directly with the office where a case is pending; CAF recording is not a prerequisite to appearing in that case. Choice D is wrong because the recorded CAF authorization itself permits disclosure to the representative for the covered periods; the IRS does not require the taxpayer to re-verify the authorization annually by telephone.
- Which of the following is correct regarding the enrolled agent's authority?
Answer: The enrolled agent's authority under the Form 2848 terminated when the taxpayer died, and the executor must file Form 56 and execute a new Form 2848 for representation of the estate to continue.
Form 2848 instructions (Termination); Form 56 instructions. A power of attorney terminates if the taxpayer dies, and the representative may no longer act under it. To continue the examination, the estate's executor must notify the IRS of the fiduciary relationship by filing Form 56 and must execute a new Form 2848 in a fiduciary capacity; an oral statement by the executor is not sufficient. Choice A is wrong because the pending examination does not keep the decedent's power of attorney in effect, and oral confirmation does not satisfy the written-authorization requirement. Choice B is wrong because the power of attorney terminates upon death itself; the IRS need not receive notice for the termination to occur. Choice C is wrong because a written statement by the executor is not a substitute for Form 56 and a new Form 2848, and no rule requires the executor to be present when the representative signs documents.
- For 2025, which of the following is correct regarding a Form 8821, Tax Information Authorization?
Answer: A person designated on a Form 8821 may inspect and receive confidential tax information for the listed matters and periods, but may not represent the taxpayer before the IRS or sign documents for the taxpayer.
References: Form 8821, Tax Information Authorization, Instructions. A Form 8821 authorizes the IRS to disclose the taxpayer's confidential return information to the named designee for the tax matters and periods listed on the form. It is only an information authorization: the designee may inspect and receive information, but may not represent the taxpayer before the IRS, may not sign documents on the taxpayer's behalf, and has no authority to take action for the taxpayer. Choice A states that scope correctly. Choice B is wrong because the taxpayer's presence does not convert a Form 8821 designee into a representative; representation requires eligibility to practice and a valid power of attorney, not the taxpayer's attendance. Choice C is wrong because a Form 8821 designee has no authority to execute a waiver of the assessment period or any other document; being the paid preparer does not confer that authority. Choice D is wrong because only the taxpayer signs Form 8821; no designee signature is required, and a Form 2848 is not a prerequisite to a Form 8821.
