A new client walks into Brennan's office in March 2026, hands him a CP2000 notice, and asks for help responding. Brennan holds a current PTIN. He is not an EA, CPA, or attorney, and he is not in the Annual Filing Season Program. He prepared the underlying 2024 return. Can he sign the response, attend the resulting examination conference, and negotiate with the revenue agent? Three Circular 230 lines separate "yes," "yes but only this much," and "absolutely not."
"Practice before the IRS" means all matters connected with a presentation to the IRS relating to a taxpayer's rights, privileges, or liabilities under laws or regulations administered by the IRS. Four core activities count:
- Preparing and filing documents with the IRS on behalf of a taxpayer
- Corresponding and communicating with the IRS on a taxpayer's behalf
- Rendering written advice with respect to any entity, transaction, plan, or arrangement having a potential for tax avoidance or evasion
- Representing a client at conferences, hearings, and meetings with the IRS
Common mistakes
- Equating return preparation with practice before the IRS. A PTIN-only preparer who signs a return has not engaged in practice under §10.2(a)(4). Practice begins at representation. Trap answer: "preparing the return is practice, so all preparers must be EA/CPA/attorney."
- Granting AFSP participants Appeals representation. AFSP rights stop at revenue agents and similar IRS personnel. Appeals, Counsel, and Revenue Officers are unlimited-practice territory only. Trap answer: "AFSP can represent at any IRS office."
- Withholding all client documents during a fee dispute. §10.28 mandates return of records needed for tax compliance regardless of unpaid fees. Only practitioner work product is a candidate for retention, and even then only if state law allows and the client can comply without it.
Bottom line
- Practice before the IRS: communications and representation on a taxpayer's rights and liabilities, NOT mere return preparation alone
- Unlimited practice: Attorneys, CPAs, Enrolled Agents. Limited practice: AFSP participants, enrolled actuaries, ERPAs, plus §10.7 self/family/employer cases
- AFSP participants may represent only on returns they personally prepared, and only before revenue agents/customer-service personnel, never Appeals, Counsel, or Revenue Officers
- EA path: pass all 3 SEE parts within 2 years OR 5 years qualifying IRS experience; Form 23 application; $140 fee; tax compliance + suitability check; minimum age 18
Exam shortcut
When the fact pattern says "preparer holds only a PTIN," the answer to any representation question is no. Representation requires a §10.3 credential (attorney, CPA, EA, or AFSP within its narrow lane). PTIN alone covers preparation only.
The full lesson (about 2,966 words, 20 min read) adds 2 worked examples, all 6 common mistakes, a self-check, free in the app.
Learning objectives
- 1
Browse all free EA Part 3 lessons or jump into free EA Part 3 practice questions.