Collections, Installments, OIC and CDP
This topic covers collection process representation, extension of time to pay, installment agreements, offers in compromise, collection appeals program, collection due process, liens, levies, refund offsets, decedents, federal tax liens, seizure, currently not collectible, IRS summons, collection statute of limitations, trust fund recovery penalty, and passport revocation.
How to study for EA Part 3
Build every answer around practitioner authority, Circular 230 duties, taxpayer authorization, deadlines, documentation, appeal rights, e-file controls, and representation limits.
Core concepts
Concept 1
Collections, Installments, OIC and CDP questions test whether an enrolled agent candidate can apply representation, practice, procedure, and filing-process rules to client matters before the IRS.
Exam cue: Identify the taxpayer, representative, authorization form, IRS matter, deadline, record source, and whether the issue involves practice, representation, collection, audit, appeal, refund, or e-file.
Concept 2
The best answer usually identifies the practitioner's authority, duty, deadline, documentation, disclosure rule, conflict issue, appeal right, or sanction exposure before choosing an action.
Exam cue: Check authority, consent, confidentiality, conflict rules, due diligence, record retention, documentation, legal support, penalty relief, and appeal route.
Concept 3
Eliminate answers that exceed the representative's authority, ignore Circular 230 duties, skip authorization forms, miss statutory deadlines, or treat e-file compliance as optional.
Exam cue: Tie the result to Form 2848, Form 8821, CAF, transcript use, collection or exam procedure, appeal response, amended return, e-file requirement, or practitioner discipline rule.
Risk pitfalls and guardrails
Acting for a taxpayer without verifying the scope of authorization and whether the person may practice before the IRS.
Guardrail: Use a 15-second safety pause before finalizing your action.
Treating tax return preparation duties, written advice, advertising, fees, and client records as informal business choices instead of practice rules.
Guardrail: Use a 15-second safety pause before finalizing your action.
Missing collection, audit, appeal, refund, penalty abatement, e-file, data security, and record-retention deadlines.
Guardrail: Use a 15-second safety pause before finalizing your action.
Memory anchors
Collection Process
Collection representation addresses payment, enforcement, appeal, and relief options after tax is assessed.
Form 1127
Form 1127 can request an extension of time to pay in certain hardship situations.
Collection Appeals Program
The Collection Appeals Program can review certain collection actions quickly.
CDP
Collection due process gives a taxpayer appeal rights after certain lien or levy notices.
Federal Tax Lien
A federal tax lien secures the government's claim against taxpayer property after requirements are met.
Levy
A levy is a seizure of property or rights to property to collect tax.
Audit Reconsideration
Audit reconsideration can ask the IRS to reevaluate an assessment based on new information.
Collection Summons
A collection summons can require testimony or documents relevant to collection.
CSED
The collection statute expiration date limits how long the IRS generally has to collect assessed tax.
Trust Fund Recovery Penalty
The trust fund recovery penalty can apply to responsible persons for willful failure to collect or pay trust fund taxes.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
A taxpayer representation matter requires the correct rule, authorization, record, or procedure. The requirement is: Collection representation addresses payment, enforcement, appeal, and relief options after tax is assessed. What should the practitioner use?
Before responding to the IRS, a practitioner identifies the Part 3 concept that controls the file. The requirement is: Form 1127 can request an extension of time to pay in certain hardship situations. Which answer is most directly supported?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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