Form 2848 - ANSWER Power of Attorney and Declaration of Representative
TP authorizes specific individual to receive confidential tax information and perform the
actions details on the form
Stolen Identity Refund Fraud - ANSWER Tax refund fraud
Title 26 - ANSWER Internal Revenue Code - main body of tax law of the United States
Title 31 - ANSWER Bank Secrecy Act - for FBAR and international financial reporting
laws
Regulation of practice of representatives before the Dept of Treasury (including IRS) and
determinators of practitioner "fitness" to practice
Legislative branch - ANSWER Makes laws (Congress)
Executive branch - ANSWER Carries out laws (President)
Judicial branch - ANSWER Evaluates laws, determines whether tax law is constitutional
US Treasury Department - ANSWER Collects taxes through the IRS
1
,IRS - ANSWER Federal agency that enforces tax law, administers Internal Revenue
Code, translates law into detailed regulations, rules, and procedures
Collection arm of US Treasury Dept
IRS Documentation in order of importance - ANSWER Treasury Regulations
Revenue Rulings
Revenue Procedures
Private letter rulings
Technical advice memoranda (TAMs)
IRS notices
Primary authority - ANSWER Internal Revenue Code, decisions by US Supreme Court,
and international tax treaties
Substantial Authority - ANSWER TO serve as the basis for interpretation of current tax
law and to establish precedents for the future
- Temporary and final Treasury Regulations
- Court Cases
- Administrative pronouncements
- Congressional intent as reflected in committee reports
- Press releases, notices, similar documents published by IRS in Internal Revenue Bulletin
(Excludes IRS publications)
Treasury Regulation - ANSWER US Treasury Dept's official interpretation of the IRC
Steps to publish a Treasury Regulation - ANSWER 1) Published in Federal Register
2
,2) Regulations are organized by subject matter and codified in the Code of Federal
Regulations (CFR)
- Legislative regulations
- Interpretive regulations
- Procedural regulations
Legislative regulation - ANSWER Highest degree of authority - generally carries same
authority as the law
Interpretive regulation - ANSWER Issued under IRS' general authority to interpret the
IRC, explains meaning of portion of code
Revenue ruling - ANSWER Intended to promote uniform application of IRC, can be
used as guidance to avoid certain accuracy-related penalties, not binding in court
Revenue procedures - ANSWER Official IS statements of procedure that affect the
rights or duties of TPs under IRC
- Explains Revenue Ruling in detail
Large Business & International Division - ANSWER Corporations with assets > $10M
Small Business/Self-Employed Division - ANSWER - Small corps and parternships with
assets < $10M
- Filers of gift, estate, excise, employment, and fiduciary returns
- Individuals filing income tax return with Sch C, E, F, or employee business expenses (Form
2106)
Wage and Investment Division - ANSWER Individuals with wage and investment
income only filing individual return without Schedule C, E, F
3
, Tax-Exempt and Government Entities Division - ANSWER - Employee plans (including
IRAs) with filing requirement
- Exempt organizations
- Government entities
Taxpayer Advocate Service - ANSWER Separate, independent org within the IRS whose
goal is to help TPs resolve problems with the IRS
Right to Privacy and Confidentiality - ANSWER IRS will not disclose to anyone the info
a TP provides, except as authorized by law
Who can represent TPs before the IRS? - ANSWER - Attorneys
- EAs
- CPAs
- Enrolled actuaries (limited to area of expertise)
- Enrolled Retirement Plan Agents (limited to area of expertise)
AFSP Record of Completion requirements - ANSWER - Minimum 18 hours of
continuing education, including 6 hour annual Federal Tax Refresher course
- Passed knowledge-based comprehension test administered by CE provider at end of course
- Current PTIN
- Consented to duties and restrictions relating to practice before IRS Circular 230
Individuals exempt from AFSP record of completion course - ANSWER - State-based
return preparer program participants
- Passed SEE Part 1 in past 2 years
- RTRP test passers
- VITA/TCE volunteers
- Other accredited tax-focused credential holders
4
TP authorizes specific individual to receive confidential tax information and perform the
actions details on the form
Stolen Identity Refund Fraud - ANSWER Tax refund fraud
Title 26 - ANSWER Internal Revenue Code - main body of tax law of the United States
Title 31 - ANSWER Bank Secrecy Act - for FBAR and international financial reporting
laws
Regulation of practice of representatives before the Dept of Treasury (including IRS) and
determinators of practitioner "fitness" to practice
Legislative branch - ANSWER Makes laws (Congress)
Executive branch - ANSWER Carries out laws (President)
Judicial branch - ANSWER Evaluates laws, determines whether tax law is constitutional
US Treasury Department - ANSWER Collects taxes through the IRS
1
,IRS - ANSWER Federal agency that enforces tax law, administers Internal Revenue
Code, translates law into detailed regulations, rules, and procedures
Collection arm of US Treasury Dept
IRS Documentation in order of importance - ANSWER Treasury Regulations
Revenue Rulings
Revenue Procedures
Private letter rulings
Technical advice memoranda (TAMs)
IRS notices
Primary authority - ANSWER Internal Revenue Code, decisions by US Supreme Court,
and international tax treaties
Substantial Authority - ANSWER TO serve as the basis for interpretation of current tax
law and to establish precedents for the future
- Temporary and final Treasury Regulations
- Court Cases
- Administrative pronouncements
- Congressional intent as reflected in committee reports
- Press releases, notices, similar documents published by IRS in Internal Revenue Bulletin
(Excludes IRS publications)
Treasury Regulation - ANSWER US Treasury Dept's official interpretation of the IRC
Steps to publish a Treasury Regulation - ANSWER 1) Published in Federal Register
2
,2) Regulations are organized by subject matter and codified in the Code of Federal
Regulations (CFR)
- Legislative regulations
- Interpretive regulations
- Procedural regulations
Legislative regulation - ANSWER Highest degree of authority - generally carries same
authority as the law
Interpretive regulation - ANSWER Issued under IRS' general authority to interpret the
IRC, explains meaning of portion of code
Revenue ruling - ANSWER Intended to promote uniform application of IRC, can be
used as guidance to avoid certain accuracy-related penalties, not binding in court
Revenue procedures - ANSWER Official IS statements of procedure that affect the
rights or duties of TPs under IRC
- Explains Revenue Ruling in detail
Large Business & International Division - ANSWER Corporations with assets > $10M
Small Business/Self-Employed Division - ANSWER - Small corps and parternships with
assets < $10M
- Filers of gift, estate, excise, employment, and fiduciary returns
- Individuals filing income tax return with Sch C, E, F, or employee business expenses (Form
2106)
Wage and Investment Division - ANSWER Individuals with wage and investment
income only filing individual return without Schedule C, E, F
3
, Tax-Exempt and Government Entities Division - ANSWER - Employee plans (including
IRAs) with filing requirement
- Exempt organizations
- Government entities
Taxpayer Advocate Service - ANSWER Separate, independent org within the IRS whose
goal is to help TPs resolve problems with the IRS
Right to Privacy and Confidentiality - ANSWER IRS will not disclose to anyone the info
a TP provides, except as authorized by law
Who can represent TPs before the IRS? - ANSWER - Attorneys
- EAs
- CPAs
- Enrolled actuaries (limited to area of expertise)
- Enrolled Retirement Plan Agents (limited to area of expertise)
AFSP Record of Completion requirements - ANSWER - Minimum 18 hours of
continuing education, including 6 hour annual Federal Tax Refresher course
- Passed knowledge-based comprehension test administered by CE provider at end of course
- Current PTIN
- Consented to duties and restrictions relating to practice before IRS Circular 230
Individuals exempt from AFSP record of completion course - ANSWER - State-based
return preparer program participants
- Passed SEE Part 1 in past 2 years
- RTRP test passers
- VITA/TCE volunteers
- Other accredited tax-focused credential holders
4
