Practice Before the IRS and Enrollment

What counts as practice before the IRS, who may practice and how far, how an enrolled agent becomes and stays enrolled (Form 23, renewal cycles, continuing education, PTINs), and the limited practice and AFSP rules. Part 3 opens with these Circular 230 basics, and the SEE tests them with exact numbers: 72 hours, 16 hours, 60 days, 30 days.

Practices and Procedures4 min read6 sections

Must-know for the exam

Practice covers all matters connected with a presentation to the IRS about a client's rights or liabilities; merely preparing a return and furnishing requested information is not practice (31 CFR 10.2(a)(4)).
Attorneys, CPAs and enrolled agents in active status have unlimited practice rights before the IRS (31 CFR 10.3(a)-(c); Pub. 947).
After passing all three SEE parts, apply on Form 23 within 1 year of passing the third part; the enrollment fee is $140 (31 CFR 10.4(a); IRS EA FAQ).
EAs need 72 hours of CE per 3-year cycle, including 6 of ethics, and at least 16 hours each year, including 2 of ethics (31 CFR 10.6(e)(2)).
Renewal cycles follow the last digit of the SSN or TIN; renewal is filed on Form 8554 (31 CFR 10.6(d)(2)).
An EA in inactive status may not practice or hold out as an enrolled agent until renewed with the required CE (31 CFR 10.6(k)).
AFSP Record of Completion holders may represent only clients whose returns they prepared and signed, before examination and customer service staff, not Appeals or collection (Rev. Proc. 2014-42).
Limited practice lets individuals represent themselves, immediate family, their full-time employer, their partnership or corporation as partner or officer, and trusts as fiduciary (31 CFR 10.7(c)).
Anyone paid to prepare all or substantially all of a federal return needs a PTIN, renewed annually (Treas. Reg. 1.6109-2; 31 CFR 10.8).
An EA must report a change of address within 60 days; a denied applicant may appeal within 30 days of the notice (31 CFR 10.5(c), (e)).

On this page · 6 sections

Traps that cost marks

Treating every contact with the IRS as practice.
Assuming any power of attorney gives full practice rights.
Giving AFSP holders appeals or collection rights.
Confusing the enrollment, renewal and PTIN forms.
Forgetting the ethics component.
Assuming the 72 hours can be packed into the last year.
Basing renewal on the original enrollment date.
Treating Form 8821 as authority to represent.

Why it matters on the exam

Part 3 tests the rules that govern practitioners themselves, and this topic is the gateway: what practice is, who is allowed to do it, and what an enrolled agent must do to keep the credential. Questions are mostly recall, so the specific numbers carry the marks.

The SEE itself has 100 questions per part (85 scored), a 200-800 scale and a passing score of 500; each passed part is valid for 3 years (PSI Candidate Information Bulletin, revised 28 Aug 2026).

Who may practice and how far

Person	Practice rights
Attorney, CPA, enrolled agent (active)	Unlimited: any matter, any taxpayer
Enrolled retirement plan agent or enrolled actuary	Limited to retirement plan or actuarial matters
AFSP Record of Completion holder	Returns they prepared and signed; examination, customer service and TAS only
Unenrolled preparer without AFSP	No representation for returns prepared after 2015
Limited practice (10.7)	Self, immediate family, employer, own partnership or corporation, trust or estate as fiduciary
Student in an LITC or STCP

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Practices and Procedures