Key Takeaways
- Attorneys, CPAs, and Enrolled Agents have unlimited practice rights before the IRS.
- EAs must pass the SEE (3-part exam) or have qualifying IRS experience.
- CPAs and attorneys must be in good standing with their licensing authority.
- All must file Form 2848 (Power of Attorney) to represent clients.
- EAs require 72 hours of CE every 3 years (minimum 16/year, including 2 ethics annually).
- Unlimited rights means any taxpayer, any matter, any IRS office.
Who Can Practice: Full (Unlimited) Rights
Why This Matters for the Exam
Knowing who can represent taxpayers—and the scope of their authority—is core to Part 3. The exam tests which practitioners have unlimited rights, their qualifications, and their CE requirements.
Expect at least 4-5 questions on practitioner categories and requirements.
The Three Categories with Unlimited Rights
| Practitioner | Qualification | CE Requirement |
|---|---|---|
| Attorneys | Licensed by state bar, in good standing | Varies by state bar |
| CPAs | Licensed by state board, in good standing | Varies by state board |
| Enrolled Agents (EAs) | Pass SEE or 5 years IRS experience | 72 hours/3 years |
What "Unlimited Rights" Means
| Unlimited Means | Description |
|---|---|
| Any taxpayer | Individuals, businesses, estates, trusts |
| Any matter | Audits, appeals, collections, penalties |
| Any IRS office | Examination, Appeals, Collection, etc. |
| Any representation | Negotiate, sign documents, receive info |
Attorneys
Attorneys licensed and in good standing with any state bar have unlimited practice rights.
| Requirement | Detail |
|---|---|
| Licensing | State bar admission |
| Good standing | Current, active license |
| Circular 230 | Subject to Circular 230 when practicing before IRS |
| CE | Per state bar requirements (not IRS) |
Certified Public Accountants (CPAs)
CPAs licensed and in good standing with any state accountancy board have unlimited practice rights.
| Requirement | Detail |
|---|---|
| Licensing | State board of accountancy |
| Good standing | Current, active license |
| Circular 230 | Subject to Circular 230 when practicing before IRS |
| CE | Per state board requirements (not IRS) |
Enrolled Agents (EAs)
Enrolled Agents are federally authorized practitioners who specialize in tax.
| Path to EA | Requirement |
|---|---|
| Exam Path | Pass all 3 parts of SEE within 3 years |
| Experience Path | 5 years qualifying IRS technical experience |
| Both paths | Background check + Form 23 application |
EA CE Requirements:
| Requirement | Hours |
|---|---|
| Total per 3-year cycle | 72 hours |
| Minimum per year | 16 hours |
| Ethics per year | 2 hours |
| Total ethics per cycle | 6 hours |
Form 2848: Power of Attorney
To represent a taxpayer, all practitioners must file Form 2848 (Power of Attorney and Declaration of Representative).
| Form 2848 Purpose | Description |
|---|---|
| Authorizes representation | Act on taxpayer's behalf |
| Receive information | Access confidential tax info |
| Sign documents | Consents, waivers, agreements |
| Negotiate | Discuss and settle matters |
Comparison: EA vs. CPA vs. Attorney
| Factor | EA | CPA | Attorney |
|---|---|---|---|
| IRS Practice Focus | Tax exclusively | Tax + accounting | Tax + legal |
| Licensing | Federal (IRS) | State board | State bar |
| CE (for IRS) | IRS requirement (72/3 yrs) | State requirement | State requirement |
| Scope | Unlimited IRS practice | Unlimited IRS practice | Unlimited IRS practice |
| Other practice | N/A | Accounting, auditing | Legal matters |
Real-World Scenario
Scenario: A taxpayer needs representation in an IRS audit of their small business return. They also need someone to prepare their annual financial statements.
- EA: Can represent in the audit. Cannot prepare audited financial statements.
- CPA: Can represent in the audit AND prepare financial statements.
- Attorney: Can represent in the audit. Can handle legal issues. Cannot attest to financial statements.
All three have equal rights for IRS representation, but their broader professional scope differs.
On the Exam
Expect 4-5 questions on full practice rights, typically:
- Categories Questions: "Which practitioners have unlimited practice rights?"
- CE Questions: "How many CE hours must EAs complete per 3-year cycle?"
- Form Questions: "What form authorizes representation?"
- Scope Questions: "What does 'unlimited' practice rights mean?"
The key is to remember: Attorneys, CPAs, and EAs = unlimited rights. All use Form 2848. EAs = 72 hours/3 years, 16/year, 2 ethics/year.
How many CE hours must Enrolled Agents complete every 3 years?
Which form authorizes a practitioner to represent a taxpayer?
What does "unlimited practice rights" mean?