Free SEE Part 3 sample questions
These five questions cover all four SEE Part 3 domains, in the formats PSI uses: direct questions, incomplete sentences and “all of the following EXCEPT”. They are original scenarios written to the content outline, not real exam items. Each answer explains the rule, because in Part 3 the rule is the whole point.
Question 1. An enrolled agent prepared a client's return and later discovers the client omitted a Form 1099-NEC from it. Under Circular 230, what must the enrolled agent do?
- A. Notify the IRS of the omission within 30 days
- B. Promptly advise the client of the omission and its consequences
- C. File an amended return on the client’s behalf
- D. Withdraw from the engagement immediately
Show answer
Answer: B
Section 10.21 requires a practitioner who knows of a client’s error or omission to advise the client promptly of the fact and of its consequences. It does not require the practitioner to notify the IRS or to amend the return; the decision to correct belongs to the client. Withdrawing may become appropriate later, but it is not what the rule requires, and staying silent breaches the duty.
Question 2. A taxpayer signs Form 2848 naming an enrolled agent as representative for income tax matters. Without further authorisation on the form, the representative may do all of the following EXCEPT:
- A. Receive and inspect the taxpayer’s confidential tax information for the listed periods
- B. Represent the taxpayer at an examination conference
- C. Sign a consent to extend the time to assess tax for a listed period
- D. Substitute another representative in their place
Show answer
Answer: D
By default a representative may receive and inspect confidential information and perform acts the taxpayer can perform for the listed matters, which includes signing a consent to extend the assessment period and representing the taxpayer at a conference. Adding or substituting another representative requires specific written permission on the form, as does signing a return.
Question 3. A client receives a notice of intent to levy that offers a Collection Due Process hearing. The client wants the chance to take the outcome to the Tax Court. What is the most important step?
- A. File Form 12153 within the period stated in the notice
- B. Request a hearing under the Collection Appeals Program instead
- C. Wait for the levy and then request an equivalent hearing
- D. Submit a new installment agreement request
Show answer
Answer: A
A timely CDP request, filed on Form 12153 within the 30 days given in the notice, preserves the right to seek judicial review of Appeals’ determination in the Tax Court. A late request can only get an equivalent hearing, which carries no right to court review. The Collection Appeals Program is faster but its decisions cannot be taken to court, and a new installment agreement request does not by itself preserve hearing rights.
Question 4. An enrolled agent wants to advertise the practice. Which description of the credential is acceptable under Circular 230?
- A. Certified by the IRS as a tax specialist
- B. IRS-certified enrolled agent
- C. Enrolled to practice before the Internal Revenue Service
- D. Tax representative working with the IRS
Show answer
Answer: C
Circular 230 prohibits enrolled agents from using the term certified and from implying an employment relationship with the IRS. It gives enrolled to practice before the Internal Revenue Service as an example of an acceptable description. The other options either use certified or suggest an IRS affiliation.
Question 5. An ERO transmits a client's timely individual return on the due date and it is rejected for a data mismatch the ERO cannot fix. What must the ERO do?
- A. Mail a paper return immediately without contacting the taxpayer
- B. Take reasonable steps to tell the taxpayer within 24 hours, with the reject reason
- C. Retransmit the same return until it is accepted
- D. Request an extension of time to file on the taxpayer’s behalf
Show answer
Answer: B
When a rejected return cannot be corrected by the ERO, the ERO must take reasonable steps to inform the taxpayer within 24 hours and give the reject reason. If the taxpayer corrects and resubmits within five calendar days after the due date, the return is treated as timely; otherwise a paper return can be filed within the time the rules allow. The ERO cannot simply file on paper without telling the client or keep retransmitting unchanged data.
How did you do?
Notice that none of these needs a calculation, and every wrong option is a plausible action. That is Part 3 in miniature: the exam checks whether you know the exact rule, not whether you can reason your way to something sensible. Question 2 in particular shows how EXCEPT questions work — three true statements and one that sounds like normal representative work but needs specific authorisation.
If you missed two or more, the domain guides are the fastest fix: Practices and Procedures, Representation, Specific Areas of Representation and Filing Process. When you are ready for more, take the 20-question practice test.