After an examination, the taxpayer disagrees with a proposed deficiency of $40,000 for one year. What must accompany a request for Appeals consideration?

Nothing; a phone call is enough

What is the Tax Court's small tax case (S case) procedure limit?

$50,000 or less in dispute per year, including penalties

$100,000 or less in dispute for all years combined, including penalties

Which statement about the IRS Independent Office of Appeals is correct?

Appeals is independent of the examination function and may settle cases considering the hazards of litigation

Only attorneys can represent taxpayers in Appeals, because Appeals settles cases based on the hazards of litigation

What is Form 4549 in an examination?

The Report of Income Tax Examination Changes, which the taxpayer signs to agree to the proposed adjustments

A notice of deficiency that gives the taxpayer 90 days to petition the Tax Court before the proposed adjustments are assessed

Under IRC 7605(a), who sets the time and place of an examination?

The IRS sets a time and place that is reasonable under the circumstances

The taxpayer's representative, at a place convenient for the client and the firm

During an interview, a taxpayer asks to stop and consult his representative. What does IRC 7521 require?

The IRS must suspend the interview (except for an administrative summons) when the taxpayer clearly requests to consult a representative

The taxpayer must return the next day

The representative must attend by phone only, and the IRS may continue the interview while the taxpayer waits for the representative to call in

The IRS may continue the interview

What is a correspondence audit?

An examination conducted by mail, usually on a few specific issues

An audit conducted in person at an IRS office, usually on a few specific issues

An audit at the taxpayer's business

When is audit reconsideration generally available?

When a taxpayer did not appear for the exam, moved without receiving notices, or has new information after an assessment, and the tax remains unpaid or a refund is sought within the refund statute

After an OIC on the same liability is accepted

After the Tax Court has decided the liability

After signing a closing agreement

Audits, the 30-day letter, appeals and the 90-day letter

Q: What is a 90-day letter?

A statutory notice of deficiency. You have 90 days (150 if outside the U.S.) to petition the Tax Court before the IRS can assess.

Q: Do I need a written protest to go to Appeals?

Yes, a formal written protest if more than $25,000 is at issue for any period; a small case request otherwise.

An IRS exam ends with a revenue agent's report and a 30-day letter; you can agree (Form 4549), request Appeals (with a written protest if over $25,000 per period), or wait for the 90-day letter (statutory notice of deficiency), after which you have 90 days (150 if abroad) to petition the Tax Court before the IRS can assess.

Updated 2026-09-23 · 4 sources · By the EnrolledAgentKit team

Exam part

Part 3

Representation, Practices and Procedures

IRS domain

Specific Areas of Representation

20 of 85 scored Qs

Tax year tested

2025

2026-27 SEE

Practice questions

10 free below

The rules the exam tests

Figures for tax year 2025, the year the 2026-27 SEE tests. Verify against the cited primary source.
Rule	What it says (2025)	Source
Exam types	Correspondence, office, field	Pub 556
Time and place	IRS sets a reasonable time and place	IRC 7605(a)
One inspection rule	Books examined once per year unless notice given	IRC 7605(b)
Right to consult	Interview suspended on request (except summons)	IRC 7521(b)(2)
30-day letter	Agree, or request Appeals within 30 days	Pub 5
Protest	Formal written protest if > $25,000 per period; small case request otherwise	Pub 5
90-day letter	Notice of deficiency; 90 days (150 abroad) to petition; no assessment meanwhile	IRC 6212, 6213
Small tax case	<= $50,000 per year; not appealable	IRC 7463
Burden of proof shift	Credible evidence + substantiation + cooperation	IRC 7491
EA privilege	Noncriminal tax advice only	IRC 7525
Audit reconsideration	After assessment with new information; not after Tax Court decision or closing agreement	IRS

Worked example

Facts: A field exam proposes a $40,000 deficiency for 2023. The client disagrees with $30,000 of it.

Path: Sign a partial agreement for the $10,000 conceded issue (stops interest on that part), and within 30 days file a formal written protest (over $25,000) requesting Appeals. If Appeals cannot settle, the IRS issues a 90-day letter and the client has 90 days to petition the Tax Court; with $30,000 in dispute she may elect small tax case (S case) procedures, whose decisions cannot be appealed.

Exam traps

The Tax Court deadline is 90 days (150 abroad) from the notice of deficiency, and it cannot be extended.
Protest threshold is $25,000 per period; S-case limit is $50,000 per year.
EAs cannot argue in Tax Court unless admitted.
Audit reconsideration is unavailable after a Tax Court decision.