P3-U03 · PART 3 · SOURCE CYCLE 2026-2027
Authorization and Disclosure
How to complete this unit
This unit uses 24 source-gated recall cards and 23 admissible practice questions. Complete the sequence in order; the unreleased wiki prose remains outside the learner path.
- 1 · LearnBuild the rule
Answer each recall prompt before opening it. Then learn the exact rule, test the controlling facts through four quick challenges, explore common questions, and finish with one own-words teach-back.
- 2 · ApplyUse it in context
Complete at least 20 mapped questions over two sessions. Review the explanation even when the answer is correct.
- 3 · ProveTest readiness
Use the Part 3 mock under time pressure. Return here for every flagged or missed concept before the next attempt.
Verified recall questions
Only cards whose complete question and answer were checked against exact primary-authority evidence appear here. Stable unit ownership gathers this lesson across 1 textbook collection.
Q1.Maya is named only on Form 8821. May she advocate the taxpayer's legal position before the IRS?
No; Form 8821 does not authorize advocacy or representation. Form 8821 does not authorize a designee to advocate or represent the taxpayer.
Q2.Which form should generally be used to authorize a qualified individual to represent a taxpayer before the IRS?
Form 2848. The Form 8821 instructions direct taxpayers to use Form 2848 to authorize representation before the IRS.
Q3.What should a representative verify about signature authority (e.g., extension of assessment period, closing agreement)?
Form 2848 does not automatically authorize every high-consequence act; signing returns and specified acts require the form's express rules.
Q4.Give the practical federal-tax rule for proper completion of power of attorney (Form 2848).
Form 2848 must identify the taxpayer, representative, tax matters, and periods with the specificity required by its instructions.
Q5.What is the key limitation involving alternate forms of power of attorney (durable)?
A non-IRS durable or general power of attorney must contain the required information and declaration before IRS representation is recognized.
Q6.How should a practitioner handle rules for client privacy and consent to disclose?
A representative's access to confidential tax information depends on taxpayer authorization and the disclosure rules.
Q7.What official rule governs requirements to be met when changing or dropping representatives or withdrawal of representative?
A taxpayer revokes, or a representative withdraws from, an authorization by following the Form 2848 instructions, including the required notation and signature.
Q8.Summarize the correct treatment of purpose of a Centralized Authorization File (CAF) number.
A CAF number is the IRS identifier for a representative's authorization records; it is not the representative's PTIN.
Q9.What common mistake should be avoided with conference and practice requirements (Publication 216)?
A recognized representative must be eligible to practice and properly authorized for the conference or matter.
Q10.Give the practical federal-tax rule for transcripts from IRS (e.g., access to and use of e-services).
IRS transcripts can provide account and return information, but access requires the taxpayer or a properly authorized person.
Q11.Summarize the correct treatment of representing a decedent.
A decedent's personal representative handles the decedent's final return and related tax responsibilities under the applicable authority.
Q12.What happens to an ITIN that has not been used on a federal tax return for three consecutive years?
It expires
Q13.Esteban is an enrolled agent. He fires his client, Jackie, for nonpayment. Esteban had submitted a power of attorney for Jackie several months ago, but now Esteban does not want to represent Jackie anymore, or receive any more IRS notices regarding her tax accounts. What should Esteban do?
Esteban should write the word "WITHDRAW" on the POA form and mail or fax it to the IRS.
Q14.The Centralized Authorization File (CAF) is:
An IRS computer database with information regarding the authority of individuals appointed under powers of attorney or designated under tax information authorizations.
Q15.What is the primary purpose of Form 2848 in tax-related matters?
To grant power of attorney to a representative.
Q16.Bellamy self-prepared his own tax return in 2025. He later received an audit notice for that return, but he does not want to deal with the IRS. Bellamy wants to hire someone to represent him at the examination. In order to have someone else represent him during the audit, all the following statements are correct except:
In order to save some money, Bellamy can potentially hire an unenrolled preparer, as long as that person has an AFSP certificate.
Q17.Which of these tasks is NOT permitted for an authorized representative to carry out on behalf of a taxpayer, even with a power of attorney?
Deposit a client's refund into their own bank account.
Q18.How many representatives can a taxpayer appoint using a single Form 2848?
Four
Q19.Taxpayers are granted a limited confidentiality privilege with any federally-authorized tax practitioner. Confidential communications include all of the following except:
Participation in a tax shelter.
Q20.Which authorization form gives the appointed person the greatest rights to represent a taxpayer?
Form 2848, Power of Attorney and Declaration of Representative.
Q21.How many years in the future can an authorization on a Form 2848 be recorded to the Centralized Authorization File (CAF)?
Current year + 3 years.
Q22.Which of the following relationships is considered "related" for the purpose of disclosing tax return information?
A child and their parent
Q23.What form must a taxpayer complete to renew an expiring ITIN?
Form W-7
Q24.Which of the following statements regarding the §7525 tax practitioner confidentiality privilege is correct?
Advice on non-criminal tax matters from a federally authorized practitioner has the same confidentiality protection as communication with an attorney.
Ready to move on?
- ▸ Explain at least 80% of these 24 rules without opening the answer, twice on different days.
- ▸ Score 80% across 20 or more mapped questions over two sessions, not one memorized round.
- ▸ Complete a timed Part 3 mock and return to this unit if its concepts remain flagged or missed.
Use these checks to choose your next study action. They do not predict a PSI scaled score.