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Special Enrollment Examination

Part 1SEE Part 1: Individuals✓Part 2SEE Part 2: Businesses Part 3SEE Part 3: Representation, Practices and Procedures

Part 3 Examinations, Appeals and Penalty Relief question: federally authorized tax practitioner privilege

Part 3Examinations, Appeals and Penalty Relief

The federally authorized tax practitioner privilege under section 7525 applies to:

A Information gathered to prepare the client's return
B All client communications, including in criminal cases
C Written communications promoting tax shelters
D Tax advice in noncriminal matters before the IRS

Show the answer and explanation

Answer: D. Tax advice in noncriminal matters before the IRS

Section 7525 extends the common-law attorney-client privilege to tax advice between a taxpayer and a federally authorized tax practitioner (such as an EA or CPA) in noncriminal tax matters before the IRS or noncriminal federal court proceedings. It does not apply in criminal matters, to information gathered for return preparation, or to written communications promoting tax shelters. Source: IRC 7525(a)-(b); IRM 34.6.3. Tax year: 2025 (law as of 31 Dec 2025).

Common mistake

Assuming the privilege covers criminal matters or return preparation.

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Original study material mapped to the public IRS SEE content outlines; not a real exam question.Not affiliated with or endorsed by the IRS or PSI. Verify figures and rules against current guidance before relying on them.