Key Takeaways
- Family members can represent relatives without being enrolled practitioners.
- Regular full-time employees can represent their employer.
- Officers can represent corporations, partners can represent partnerships.
- Trustees/fiduciaries can represent trusts and estates.
- These special representatives cannot charge fees for representation.
- Student practice allowed under supervision in LITC programs.
Special Relationships: Exceptions to Practitioner Requirements
Why This Matters for the Exam
Circular 230 allows certain non-practitioners to represent taxpayers in specific relationships. The exam tests who qualifies, what limitations apply, and the critical no-fee rule.
Expect at least 2-3 questions on special relationships.
Overview of Special Relationships
| Relationship | Who Can Represent |
|---|---|
| Family | Spouse, parent, child, sibling, grandparent, grandchild |
| Employee | Full-time employee for their employer |
| Corporate Officer | Officer for their corporation |
| Partner/Member | Partner for their partnership, member for their LLC |
| Fiduciary | Trustee, executor, administrator for the trust/estate |
Family Member Representation
Immediate family members can represent each other before the IRS:
| Who Qualifies | Relationship |
|---|---|
| Spouse | Current spouse |
| Parent | Mother, father (including step) |
| Child | Son, daughter (including step) |
| Sibling | Brother, sister (including step) |
| Grandparent | Grandmother, grandfather |
| Grandchild | Grandson, granddaughter |
Key Limitation: Cannot charge a fee.
Employee Representation
| Employee Type | Can Represent |
|---|---|
| Regular full-time employee | Their employer only |
| Part-time employee | Generally no (must be "regular, full-time") |
| Contractor | No |
Example: A company's in-house accountant (full-time employee) can represent the company before the IRS without being an EA, CPA, or attorney.
Corporate Officers
| Position | Can Represent |
|---|---|
| Officer | Their corporation |
| Director | Generally no (must be officer) |
| Shareholder only | No |
Partnerships and LLCs
| Position | Can Represent |
|---|---|
| General Partner | The partnership |
| Member (LLC) | Member-managed LLC |
| Limited Partner | Generally no |
Fiduciary Representation
| Fiduciary | Can Represent |
|---|---|
| Executor/Administrator | The estate |
| Trustee | The trust |
| Guardian/Conservator | The ward |
| Receiver | The receivership |
The No-Fee Rule
Critical Rule: These special representatives cannot charge a fee for the representation.
| If Fee Is Charged | Result |
|---|---|
| Compensation received | Representation is unauthorized |
| Must be | EA, CPA, or attorney to charge |
| Exception | Salary as employee is OK (not "fee for representation") |
Student Practice (LITC)
Low Income Taxpayer Clinic (LITC) programs allow supervised student practice:
| Requirement | Detail |
|---|---|
| Supervision | Must be supervised by authorized practitioner |
| Program | Must be IRS-approved LITC or STCP |
| Client | Low-income taxpayers only |
Real-World Scenario
Scenario: Your elderly parent receives an audit notice. They ask you to represent them.
- As their child: You can represent them without being an EA, CPA, or attorney.
- No fee: You cannot charge your parent for the representation.
- If you want compensation: You must become an authorized practitioner (EA, CPA, or attorney).
On the Exam
Expect 2-3 questions on special relationships, typically:
- Who Questions: "Who can represent a corporation without being an enrolled practitioner?"
- Fee Questions: "What restriction applies to family member representation?"
- Employee Questions: "Can a part-time employee represent their employer?"
The key is to remember: Family, employees, officers, partners, fiduciaries can represent—but NO FEE can be charged.
Who can represent a corporation before the IRS without being an enrolled practitioner?
What restriction applies to family member representation?
Can a part-time employee represent their employer before the IRS?