Which office is responsible for issuing preparer tax identification numbers and acting on applications for enrollment?
Based on: IRS Publication 947 (02/2018), Practice Before the IRS and Power of Attorney
Enrolled Agent Exam (SEE) · Representation
Representation Before the IRS: Form 2848, Authority and Its Limits
Representation before the IRS is 25 of the 85 scored questions on Part 3, and the questions are unusually mechanical: they turn on what a specific form authorises, and on the exceptions written into the authorisation. Learn the exceptions and this topic becomes reliable marks.
Practice
Free practice questions
Which of the following is practice before the IRS under Circular 230?
Based on: IRS Publication 947 (02/2018), Practice Before the IRS and Power of Attorney
Roberta prepares a return for compensation and appears as a witness for the taxpayer, but does nothing else. Do these acts by themselves constitute practice before the IRS requiring authorization?
Based on: IRS Publication 947 (02/2018), Practice Before the IRS and Power of Attorney
A recognized representative who is authorized generally to practice must do what to represent a particular taxpayer?
Based on: IRS Publication 947 (02/2018), Practice Before the IRS and Power of Attorney
What are an appraiser's rights before the IRS under Circular 230?
Based on: IRS Publication 947 (02/2018), Practice Before the IRS and Power of Attorney
Under what condition may an attorney or CPA practice before the IRS?
Based on: IRS Publication 947 (02/2018), Practice Before the IRS and Power of Attorney
Is an enrolled agent's practice before the IRS limited to particular Internal Revenue Code sections?
Based on: IRS Publication 947 (02/2018), Practice Before the IRS and Power of Attorney
The practice of an enrolled retirement plan agent or an enrolled actuary before the IRS is limited to what?
Based on: IRS Publication 947 (02/2018), Practice Before the IRS and Power of Attorney
An unenrolled return preparer may represent a taxpayer only in what circumstance?
Based on: IRS Publication 947 (02/2018), Practice Before the IRS and Power of Attorney
Which act may an unenrolled return preparer NOT perform for a taxpayer?
Based on: IRS Publication 947 (02/2018), Practice Before the IRS and Power of Attorney
How authority is established
A recognised representative must file a written declaration stating that they are authorised and qualified to represent the taxpayer. Form 2848, Power of Attorney and Declaration of Representative, is the usual instrument. Filing it is what makes you recognised; holding a credential is not enough on its own, and neither is having a CAF number. A Centralized Authorization File number only confirms that a file exists for you. It is not recognition, and it is not authority to practise.
What an unlimited power of attorney lets you do
An unlimited power of attorney lets the representative do anything the taxpayer could do, with one flat exception: the representative may never negotiate or endorse a refund check. Within that boundary the authority is broad. The representative may sign a consent extending the statutory period for assessment or collection. They may not, however, sign the taxpayer's return unless two conditions are both met: the Code and regulations permit signing in that situation, and the taxpayer specifically authorised it in the power of attorney. The regulations permit signing where the taxpayer has been continuously absent from the United States for at least 60 days before the filing due date, and in cases of disease, injury or specific IRS permission.
- Third-party disclosure consents may be executed only if the taxpayer specifically delegated that authority on line 5a of Form 2848
- Incapacity or incompetency generally terminates a power of attorney, unless the taxpayer authorised continuation on line 5a and the durable power meets IRS requirements
- After a substitution only the new representative is recognised; after a delegation both the original and the new representative are recognised
- On a joint return each spouse must file a separate Form 2848, even where both appoint the same representative
- The IRS routinely sends copies of notices and communications to no more than two representatives
The rules that get powers of attorney rejected
The IRS will not record a general reference. All years, all periods and all taxes are not acceptable descriptions, and a power of attorney using them is returned. Nor will the IRS record future years or periods that extend more than three years beyond 31 December of the year it receives the form. A power of attorney drafted outside the IRS system, a durable power under state law for example, can still be used, but it must be perfected: Form 2848 must be completed and attached for it to go on the CAF system, the original must actually grant authority over federal tax matters, it must identify the tax types, form numbers and specific years or periods, and the attorney-in-fact must attach a statement signed under penalties of perjury that the original is valid under the governing law.
Who else may represent, and how far
An unenrolled return preparer's representation is confined to the examination of a return they both prepared and signed, and only before revenue agents, customer service representatives and similar IRS employees. They may not execute closing agreements, extend a statutory period, execute waivers or sign documents for the taxpayer. Holders of an Annual Filing Season Program Record of Completion are in the same position: returns they prepared and signed only, and never before collection or appeals. Beyond the credentialed and the limited-practice categories there is a narrow safety valve. Any individual may represent a person who is outside the United States when the representation also happens outside the United States. And the Commissioner or a delegate may authorise a special appearance on written request to OPR, granted only in extremely compelling circumstances.
Losing and regaining the right to practise
An enrolled individual who lets enrollment lapse is placed on the inactive roster for three years and must renew within that period or be terminated. A practitioner who has been sanctioned may seek reinstatement at the earlier of the end of a specified suspension period or five years after disbarment. OPR may reinstate if it finds the practitioner is not likely to conduct themselves contrary to the regulations and that reinstatement would not be contrary to the public interest. Separately, losing a state licence as an attorney or CPA, for any reason at all, causes loss of eligibility to practise before the IRS.
| Representative | Scope of representation | Key restriction |
|---|---|---|
| Enrolled agent (active status) | Any taxpayer, any tax matter, any IRS office | Cannot negotiate or endorse a refund check |
| Enrolled actuary / ERPA | Limited to Code sections on employee retirement plans; ERPAs cover 5300 and 5500 series forms | ERPAs cannot represent on actuarial forms or schedules |
| Unenrolled preparer / AFSP holder | Examination of a return they prepared and signed, before revenue agents and similar employees | Never before appeals, collection or Counsel; cannot execute waivers or closing agreements |
| Limited practice under section 10.7 | Self, immediate family (spouse, child, parent, brother, sister), own partnership, own employer | Closed entirely to anyone suspended or disbarred |
FAQ
Frequently asked questions
What can a representative with an unlimited power of attorney not do?
Negotiate or endorse the taxpayer's refund check. That single exception applies no matter how broadly the power of attorney is drafted. Signing the taxpayer's return is also restricted: it needs both a regulation permitting it and specific authorisation in the power of attorney.
Does a CAF number mean I am authorised to represent a taxpayer?
No. A Centralized Authorization File number only records that the IRS holds a centralized authorization file for you. It is not recognition and confers no authority to practise. Authority comes from filing the written declaration, usually Form 2848.
Can I write All years on a Form 2848?
No. The IRS does not accept general references such as All years, All periods or All taxes and returns any power of attorney that uses them. You must name the tax types, form numbers and specific years or periods, and you cannot list future periods more than three years beyond 31 December of the year the IRS receives the form.
What is the difference between substitution and delegation of a representative?
After a substitution only the newly recognised representative remains recognised. After a delegation both the original representative and the newly named one are recognised.
Do a husband and wife filing jointly need one Form 2848 or two?
Two. Each spouse must file a separate Form 2848 to be represented, even if they are appointing the same representative for the same year.
Who counts as immediate family for limited practice?
Only a spouse, child, parent, brother or sister. Grandparents, grandchildren, in-laws, aunts, uncles and cousins are outside the definition, which is what makes this a favourite exam distractor.