Enrolled Agent Exam Sample Questions: Part 3 Representations

Written by Vicky Sarin, CA (INSEAD), Founder of Eduyush. Original questions are Eduyush's own; verbatim items are reproduced from the IRS SEE sample set (public domain).

Part 3 Exam Format & How to Use These Questions

Part 3 (Representation, Practices & Procedures) has 100 multiple-choice questions — 85 scored and 15 unscored experimental — in 3.5 hours. Questions come in three formats: a direct question, an incomplete sentence, and an "all of the following except" narrative. The 85 scored questions span four domains in roughly this weighting:

Most questions below are original Eduyush practice questions testing the same Circular 230 rules and IRS procedures the exam tests; a few are verbatim official IRS samples (labelled). For the full official set, see the IRS SEE sample questions page. Part 3 is mostly rules and procedure rather than calculations — flashcard-style repetition works well here.

Domain 1 — Practices and Procedures Questions

Q1. Under Circular 230, which of the following is "incompetence or disreputable conduct" that can lead to sanction?

A. Conviction of any misdemeanour offence under local law
B. Conviction of any criminal offence involving dishonesty or breach of trust
C. Disclosing a client's return information with the client's consent
D. Forgetting to sign a return due to reasonable cause

Show answer & explanation

Answer: B. Conviction of any criminal offence involving dishonesty or breach of trust is disreputable conduct under §10.51. Disclosure with consent is permitted, and a reasonable-cause omission isn't disreputable.
Eduyush original question · Circular 230 §10.51.

Q2. An enrolled agent must complete how much continuing education to renew enrollment?

A. 16 hours total over three years
B. 72 hours per three-year cycle, with a minimum of 16 hours per year including 2 hours of ethics
C. 40 hours every year
D. None — EAs have no CE requirement

Show answer & explanation

Answer: B. EAs must complete 72 hours of CE per three-year enrollment cycle, with a minimum of 16 hours each year, including 2 hours of ethics annually.
Eduyush original question · Circular 230 §10.6(e).

Q3. An EA is asked to represent both spouses from a jointly filed return in the same IRS matter. Under Circular 230, the EA may do so only if — among other conditions:

A. The EA notifies the Tax Court
B. The EA reasonably believes they can provide competent and diligent representation to each client, and each gives informed consent in writing
C. One spouse waives all rights
D. Conflicts are never allowed under any circumstances

Show answer & explanation

Answer: B. A conflict of interest may be waived if the EA reasonably believes they can represent each client competently and diligently, it isn't prohibited by law, and each affected client gives informed consent in writing (retained for 36 months).
Eduyush original question · Circular 230 §10.29.

Q4. A preparer completes a return claiming the Earned Income Credit. To meet due-diligence requirements they must:

A. Do nothing extra — EIC has no special rules
B. Complete and submit Form 8867 and keep records of how, when and from whom the information was obtained
C. Only verbally confirm eligibility
D. File Form 2848

Show answer & explanation

Answer: B. EIC (and CTC/AOTC/HOH) due diligence requires completing and filing Form 8867 and retaining records of the information relied on. Each failure carries a penalty (inflation-adjusted).
Eduyush original question · IRC §6695(g); Treas. Reg. §1.6695-2.

Q5. (Official IRS sample — verbatim) Which of the following from Circular 230 is correct regarding sanctions against an enrolled agent?

A. There cannot be both monetary and nonmonetary sanctions imposed
B. An EA can face imprisonment up to 3 years
C. An EA can be censured
D. A monetary penalty can exceed the gross income derived from the conduct

Show answer & explanation

Answer: C. Sanctions under §10.50 include censure (a public reprimand), suspension, disbarment and monetary penalties — but a monetary penalty can't exceed the gross income from the conduct, and Circular 230 is civil, not criminal (no imprisonment).
Official IRS sample question (verbatim, public domain) · Circular 230 §10.50.

Q6. (Official IRS sample — verbatim) When advertising their services, an enrolled agent may use which phrase to describe their designation?

A. Certified to practice before the Internal Revenue Service
B. Admitted to practice before the Internal Revenue Service
C. Enrolled as a representative of the Internal Revenue Service
D. Licensed to practice before the Internal Revenue Service

Show answer & explanation

Answer: B. Circular 230 permits an EA to describe themselves as "enrolled to practice before the IRS" or "admitted to practice before the IRS" — not "certified," "licensed" or "an employee of" the IRS.
Official IRS sample question (verbatim, public domain) · Circular 230 §10.30(a).

Domain 2 — Representation Before the IRS Questions

Q7. What is the key difference between Form 2848 and Form 8821?

A. They are identical
B. Form 2848 (Power of Attorney) authorises a representative to act for the taxpayer; Form 8821 (Tax Information Authorization) only allows a designee to receive/inspect confidential information — not to represent
C. Form 8821 authorises representation; Form 2848 does not
D. Both authorise representation in Tax Court

Show answer & explanation

Answer: B. Form 2848 grants representation rights; Form 8821 only authorises a third party to receive or inspect the taxpayer's confidential information — it does not permit representation.
Eduyush original question · Forms 2848 & 8821 instructions; Publication 947.

Q8. Which professionals have unlimited rights to represent taxpayers before the IRS?

A. Only attorneys
B. Enrolled agents, CPAs and attorneys
C. Anyone with a PTIN
D. Only the preparer who signed the return

Show answer & explanation

Answer: B. EAs, CPAs and attorneys have unlimited representation rights — any taxpayer, any tax matter, any IRS office. Annual Filing Season Program participants have only limited rights.
Eduyush original question · Circular 230 §10.3; Publication 947.

Q9. A taxpayer wants to revoke an existing Form 2848 power of attorney. They can:

A. Only wait for it to expire on its own
B. Send the IRS a copy of the POA marked "REVOKE," signed and dated (or file a new Form 2848 for the same matters)
C. Phone the representative
D. Nothing — a POA cannot be revoked

Show answer & explanation

Answer: B. To revoke, the taxpayer sends the IRS a copy of the POA marked "REVOKE" with a current signature and date, or files a new Form 2848 (which revokes a prior POA for the same matters unless the retain box is checked).
Eduyush original question · Form 2848 instructions; Publication 947.

Q10. (Official IRS sample — verbatim) How many future years will the IRS record to the Centralized Authorization File (CAF) based on a valid Form 2848?

A. December 31 of year of receipt + 1 year
B. December 31 of year of receipt + 2 years
C. December 31 of year of receipt + 3 years
D. December 31 of year of receipt + 4 years

Show answer & explanation

Answer: C. The IRS will record authorisation for future periods up to December 31 of the year of receipt plus three years.
Official IRS sample question (verbatim, public domain) · 26 C.F.R. §601.506(d)(3)(ii); Form 2848 instructions.

Q11. The §7525 confidentiality privilege for a federally authorised tax practitioner generally applies to:

A. Tax-return preparation
B. Non-criminal tax advice in matters before the IRS (but not return preparation, criminal matters, or promoting tax shelters)
C. Any criminal tax investigation
D. Advice encouraging a tax shelter

Show answer & explanation

Answer: B. The §7525 privilege covers confidential tax advice in non-criminal matters before the IRS. It does not extend to return preparation, criminal proceedings, or communications promoting tax shelters.
Eduyush original question · IRC §7525.

Domain 3 — Specific Types of Representation Questions

Q12. A taxpayer owes a balance and wants an installment agreement. A core requirement is that the taxpayer must:

A. Owe less than $1,000
B. Be in filing compliance — all required returns filed
C. Pay no interest or penalties during the agreement
D. Have never owed tax before

Show answer & explanation

Answer: B. A taxpayer must be in filing compliance (all required returns filed) to qualify for an installment agreement. Interest and penalties continue to accrue during the agreement. Individuals owing $50,000 or less may apply online.
Eduyush original question · IRC §6159; Publication 594.

Q13. The IRS may accept an Offer in Compromise on which of these grounds?

A. The taxpayer simply doesn't want to pay
B. Doubt as to liability, doubt as to collectibility, or effective tax administration
C. The taxpayer has filed for bankruptcy
D. The taxpayer hasn't filed required returns yet

Show answer & explanation

Answer: B. The three OIC grounds are doubt as to liability (the debt may be wrong), doubt as to collectibility (can't pay in full), and effective tax administration (paying in full would create hardship/inequity). The taxpayer must be filing-compliant and not in open bankruptcy.
Eduyush original question · IRC §7122; Treas. Reg. §301.7122-1.

Q14. After receiving a Notice of Intent to Levy, a taxpayer wants to dispute the collection action. The right vehicle is generally:

A. A Collection Due Process (CDP) hearing request
B. A new tax return
C. A Tax Court petition only
D. Nothing can be done once a levy notice issues

Show answer & explanation

Answer: A. A taxpayer can request a CDP hearing (Form 12153) within 30 days of a Notice of Intent to Levy or after a Notice of Federal Tax Lien filing. Previously-considered or frivolous arguments can't be raised and may trigger a penalty.
Eduyush original question · IRC §§6320, 6330.

Q15. Audit reconsideration is generally available when:

A. The taxpayer has already paid the assessment in full
B. The taxpayer has information not previously considered, or did not appear/submit information during the original examination
C. The taxpayer simply disagrees with the law
D. More than ten years have passed

Show answer & explanation

Answer: B. Audit reconsideration is for taxpayers who didn't appear or submit information originally, or who have new information not previously considered. If the tax is already paid in full, the route is a claim for refund instead.
Eduyush original question · IRM 4.13; Publication 3598.

Q16. (Official IRS sample — verbatim) For the IRS to grant a guaranteed installment agreement, a taxpayer must not have failed to file or pay tax during any of the preceding:

A. 3 taxable years
B. 5 taxable years
C. 6 taxable years
D. 10 taxable years

Show answer & explanation

Answer: B. One condition for a guaranteed installment agreement is a clean filing/payment record for the preceding five taxable years.
Official IRS sample question (verbatim, public domain) · IRC §6159(c)(2).

Q17. (Official IRS sample — verbatim) The IRS may accept an Offer in Compromise under which condition?

A. The taxpayer's tax debt might not be accurate
B. All liabilities were referred to the Department of Justice
C. The taxpayer filed Chapter 13 bankruptcy
D. The taxpayer failed to file all required returns before the offer

Show answer & explanation

Answer: A. Doubt as to liability — the debt might not be accurate — is a valid OIC ground. An open DOJ referral, open bankruptcy, or unfiled returns each block an offer.
Official IRS sample question (verbatim, public domain) · IRC §7122(a); Treas. Reg. §301.7122-1.

Domain 4 — Completion of the Filing Process Questions

Q18. An e-filed return is rejected by the IRS. To still be timely, the taxpayer generally must file a paper return by:

A. The same day
B. The later of the return due date or 10 calendar days after the rejection notification
C. 30 days after rejection
D. The next quarter

Show answer & explanation

Answer: B. The e-file "perfection period" gives until the later of the original due date or 10 calendar days after the rejection notice to file a paper return and be treated as timely.
Eduyush original question · Notice 2010-13; Publication 1345.

Q19. A paid tax return preparer must, on every return they prepare for compensation:

A. Remain anonymous
B. Sign the return and include their PTIN
C. Use the taxpayer's SSN as the preparer ID
D. Attach Form 2848

Show answer & explanation

Answer: B. A paid preparer must sign the return and furnish their Preparer Tax Identification Number (PTIN); failures carry penalties.
Eduyush original question · IRC §6695(b),(c); §6109.

Q20. To avoid the accuracy-related penalty for a substantial understatement, a taxpayer may rely on "substantial authority." A preparer can also reduce exposure by disclosing a position on:

A. Form 1040 only
B. Form 8275 (Disclosure Statement) — or Form 8275-R if contrary to a regulation
C. Form 2848
D. A handwritten note

Show answer & explanation

Answer: B. The 20% accuracy-related penalty for substantial understatement can be avoided with substantial authority or by adequately disclosing the position on Form 8275 (or 8275-R if the position is contrary to a regulation) with a reasonable basis.
Eduyush original question · IRC §6662; Treas. Reg. §1.6662-4.

Q21. (Official IRS sample — verbatim) To show "substantial authority" for the tax treatment of an item, which of these is a type of authority a taxpayer may rely on?

A. www.irs.gov
B. Treasury regulations
C. IRS Forms
D. IRS Publications

Show answer & explanation

Answer: B. Treasury regulations are substantial authority. The IRS website, forms and publications are not on the list of authorities for the substantial-authority standard.
Official IRS sample question (verbatim, public domain) · Treas. Reg. §1.6662-4(d)(3)(iii).

From Practice Questions to Exam-Ready

Part 3 is the most rules-and-procedure heavy of the three — Circular 230, powers of attorney, collection options, penalties, e-file mechanics — and 21 questions only scratch the surface. That's where an AI-based platform earns its keep. Surgent EA Review, available via Eduyush, runs on adaptive A.S.A.P. technology that pinpoints your weakest representation topics and feeds you questions from a 2,000+ MCQ bank until you've closed the gap. Its ReadySCORE mirrors the real exam and shows the score you'd get if you sat today.

EA Part 3 Practice Questions — FAQs

Are these real EA exam questions?

Most are original Eduyush practice questions written to the same Circular 230 rules and IRS procedures the exam tests; a few are official IRS sample questions (clearly labelled). No one can publish live exam questions — these mirror the format and difficulty.

How many questions are on EA Part 3?

100 multiple-choice questions — 85 scored and 15 unscored experimental — in 3.5 hours, across four domains of representation, practices and procedures.

Is Part 3 easier than Parts 1 and 2?

Many candidates find it more manageable — it's mostly rules and procedure rather than calculations, and has a higher pass rate than Part 1. But it still requires memorising Circular 230 in detail. See the pass-rate breakdown.

What does Part 3 focus on?

Circular 230 ethics and sanctions, powers of attorney (Forms 2848 and 8821), the CAF, collection options (installment agreements, offers in compromise), appeals and CDP, penalties, and e-file procedures. Our Circular 230 explainer covers the ethics core.

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