Specific Areas of Representation — Enrolled Agent — SEE Part 3 (Representation, Practices and Procedures) Practice Test

This Enrolled Agent — SEE Part 3 (Representation, Practices and Procedures) Specific Areas of Representation practice set has 127 practice questions based on the official exam materials, each with an instant explanation.

Sample questions

Three questions from the Specific Areas of Representation bank with the correct answer and an explanation. The practice quiz above draws 30 questions at random from the same bank.

1. Under IRC §6321, once a federal tax lien has arisen, to what does the lien attach?

   • All property and rights to property, whether real or personal, belonging to the taxpayer — Correct answer
   • Only the real estate the taxpayer owns in the state where the return was filed
   • Only the specific bank account into which the taxpayer's refund would have been deposited
   • Only property the taxpayer pledges after receiving a Notice of Federal Tax Lien

   Explanation: IRC §6321 provides that if a person liable to pay any tax neglects or refuses to pay after demand, the amount is a lien in favor of the United States upon 'all property and rights to property, whether real or personal,' belonging to that person. The lien is comprehensive — it reaches real estate, bank accounts, vehicles, wages, and intangible rights alike, not a single asset or state. (See also Pub 594.)

   Handbook: Specific Areas — Federal Tax Lien Arises (IRC §6321)

2. All of the following are required before a federal tax lien arises under IRC §6321 EXCEPT:

   • The IRS must file a public Notice of Federal Tax Lien (NFTL) — Correct answer
   • The tax must be assessed
   • The IRS must give the taxpayer notice and demand for payment
   • The taxpayer must neglect or refuse to pay after demand

   Explanation: The statutory ('silent') federal tax lien arises when three things occur: (1) the tax is assessed, (2) the IRS gives notice and demand for payment under IRC §6303, and (3) the taxpayer neglects or refuses to pay after that demand (IRC §6321). Filing a public Notice of Federal Tax Lien is NOT required for the lien to exist — the NFTL (IRC §6323) only perfects the lien's priority against certain competing creditors.

   Handbook: Specific Areas — Requirements for the Lien to Arise (IRC §6321/§6303)

3. Under IRC §6303, after making an assessment the IRS must give the taxpayer notice and demand for payment within ______.

   • 60 days of the assessment — Correct answer
   • 10 days of the assessment
   • 30 days of the assessment
   • 6 months of the assessment

   Explanation: IRC §6303(a) requires the IRS, as soon as practicable and within 60 days after making an assessment, to give notice to each person liable for the unpaid tax, stating the amount and demanding payment. This notice and demand is the second element (after assessment) that must be satisfied before the §6321 lien takes hold when the taxpayer then fails to pay.

   Handbook: Specific Areas — Notice and Demand (IRC §6303)