IRS Enrolled Agent SEE Part 3 (Representation, Practices and Procedures) Glossary
26 essential terms and definitions for IRS Enrolled Agent SEE Part 3 (Representation, Practices and Procedures). Each definition is written for exam preparation, covering the concepts as they are tested on the 2026 syllabus.
A
- Annual Filing Season Program (AFSP)
- The Annual Filing Season Program is a voluntary IRS program for tax-return preparers who are not attorneys, CPAs, or EAs. Completing the AFSP grants limited representation rights for the returns the preparer signed and a Record of Completion.
- Appeals Conference
- An appeals conference is a meeting between the taxpayer (or representative) and an IRS Appeals officer to discuss disputed issues. It is administrative and less adversarial than litigation, and most cases settle at this stage.
- Audit Reconsideration
- Audit reconsideration is the process by which a taxpayer requests the IRS to reconsider an audit assessment. It is available when new information is presented, when the audit was conducted without the taxpayer's participation, or when assessed liabilities are disputed.
B
- Bank Secrecy Act (BSA)
- The Bank Secrecy Act is the federal anti-money-laundering law requiring financial institutions and certain non-bank businesses to report large cash transactions (Form 8300, CTR) and suspicious activity (SAR). It is administered by FinCEN.
C
- The CAF is the IRS database that records taxpayer authorizations of representatives via Form 2848 (POA) or Form 8821 (tax information authorization). The representative receives a CAF number used to identify them on later filings.
- Circular 230
- Circular 230 contains the Treasury Department regulations that govern practice before the IRS. It sets standards of conduct, due diligence, confidentiality, contingent-fee restrictions, and sanctions for attorneys, CPAs, EAs, and other authorized representatives.
- Closing Agreement (Form 906)
- A closing agreement is a final agreement between the IRS and a taxpayer that resolves a tax issue with binding effect on both parties. It can address a specific issue (Form 906) or settle the taxpayer's full liability (Form 866).
- Collection Due Process (CDP) Hearing
- A CDP hearing is a pre-collection right available to taxpayers facing a levy or a notice of federal tax lien. It allows the taxpayer to propose collection alternatives, challenge the underlying liability in limited cases, and obtain Tax Court review of an adverse determination.
- Collection Statute Expiration Date (CSED)
- The CSED is generally 10 years from the date the tax is assessed. The IRS cannot collect after the CSED unless specific events toll the statute, such as offers in compromise pending, certain bankruptcy proceedings, or military service.
- Currently Not Collectible (CNC)
- Currently not collectible is an IRS designation for accounts where collection would cause economic hardship. Active collection is suspended, but the liability persists, interest and penalties continue to accrue, and the IRS may revisit the determination.
D
- Doubt as to Collectibility
- Doubt as to collectibility is one of the three statutory bases for the IRS to accept an Offer in Compromise. It applies when the taxpayer's reasonable collection potential (assets plus future income) is less than the assessed tax liability.
- Doubt as to Liability
- Doubt as to liability is the OIC basis available when there is genuine dispute about whether the assessed tax is owed or in what amount. It requires a factual or legal basis for the dispute and is rarely accepted.
E
- Effective Tax Administration
- Effective tax administration is the OIC basis applicable when collecting the full tax would cause economic hardship or be inequitable due to compelling public-policy or equity considerations, even if the taxpayer technically could pay.
- Enrolled Agent (EA)
- An enrolled agent is a tax practitioner authorized by the federal government to represent taxpayers before all administrative levels of the IRS. EAs earn the credential by passing the Special Enrollment Examination or via prior IRS employment.
- Examination (Audit)
- An examination, or audit, is an IRS review of a taxpayer's return to verify accuracy. It may be conducted by correspondence (most common), in an IRS office, or in the field (typically for businesses and complex returns).
F
- Form 2848 (Power of Attorney)
- Form 2848 is the IRS power of attorney that authorizes a representative to act on behalf of the taxpayer for specified matters and tax years. Only attorneys, CPAs, EAs, enrolled actuaries, and a few other listed practitioners may serve as the named representative.
- Form 8821 authorizes the IRS to share confidential tax information with a third party. Unlike Form 2848, it does not grant authority to represent the taxpayer or to advocate; it is purely an information-disclosure authorization.
I
- Identity Protection PIN (IP PIN)
- An IP PIN is a six-digit number that confirmed identity-theft victims (and voluntary opt-ins) include on their tax return to prevent fraudulent filings. The IRS reissues a new IP PIN annually.
- Innocent Spouse Relief
- Innocent spouse relief is available when a spouse jointly liable for an understatement of tax did not know and had no reason to know of the understatement, and it would be inequitable to hold them liable. Three statutory varieties exist: traditional innocent spouse, separation of liability, and equitable relief.
- Installment Agreement
- An installment agreement is an arrangement that allows a taxpayer to pay outstanding tax over time in monthly installments. Categories include guaranteed installment agreements (small balances), streamlined IAs (under specified thresholds), and routine IAs requiring full financial disclosure.
L
- Levy
- A levy is a legal seizure of taxpayer property to satisfy a tax debt. Common targets include wages (continuous), bank accounts (one-time), and accounts receivable. Pre-levy notice and CDP rights generally apply.
N
- Notice of Federal Tax Lien (NFTL)
- The notice of federal tax lien is a public filing that perfects the federal tax lien against the taxpayer's property and establishes priority against later creditors. The lien itself attaches automatically once the tax is assessed and unpaid after demand.
O
- Offer in Compromise (OIC)
- An OIC is an agreement that settles a tax liability for less than the full amount owed. The IRS may accept on three bases: doubt as to liability, doubt as to collectibility, or effective tax administration.
S
- Statute of Limitations on Assessment
- The statute of limitations on assessment is generally three years from the later of the due date or the filing date. It extends to six years for substantial omission of income (over 25%) and is indefinite for fraudulent returns or returns never filed.
T
- Tax Court (US Tax Court)
- The US Tax Court is a federal court that hears disputes over IRS deficiency determinations before the tax is paid. A petition must be filed within 90 days of a Notice of Deficiency (150 days if the taxpayer is outside the US).
- Taxpayer Advocate Service (TAS)
- TAS is an independent organization within the IRS that helps taxpayers resolve problems they have been unable to resolve through normal channels. The National Taxpayer Advocate also reports systemic issues to Congress.