Circular 230: Circular 230 (Duties & Restrictions)
Circular 230: Circular 230 (Duties & Restrictions) is a critical concept in EA Exam Part 3, Practices & Procedures. This topic covers essential tax principles that frequently appear on the exam. Understanding circular 230 (duties & restrictions) is crucial for passing Part 3.
Quick answer
This subtopic covers a practitioner’s duties and restrictions under Circular 230: diligence, prompt disposition of matters, returning client records, conflicts of interest, and restrictions on fees and solicitation.
Circular 230 (Duties & Restrictions) is tested on EA Exam Part 3 (Practices & Procedures). Primary IRS reference: Circular 230 §10.20.
About this EA exam topic
This subtopic covers a practitioner’s duties and restrictions under Circular 230: diligence, prompt disposition of matters, returning client records, conflicts of interest, and restrictions on fees and solicitation.
The EA exam tests the duty to advise clients of errors/omissions, the prohibition on unconscionable fees, and the rules on contingent fees.
What you'll be tested on
- Due diligence and reliance on client information
- Duty to return client records and notify of errors
- Conflicts of interest and informed consent
- Fee restrictions, including contingent fees
How to prepare
- Remember records must generally be returned even in a fee dispute.
- Know when contingent fees are permitted.
- Memorize the conflict-of-interest consent rules.
Practice questions for Circular 230 (Duties & Restrictions)
What this topic covers
Circular 230 (Duties & Restrictions) appears in Part 3: Representation, Practices & Procedures within the Practices & Procedures domain. VantageEA practice questions focus on how circular 230 rules are applied in realistic EA exam fact patterns.
What candidates practice
Candidates practice identifying tested facts, choosing the best multiple-choice answer, and reviewing explanations tied to Circular 230 §10.20, Circular 230 §10.21, Circular 230 §10.22, Circular 230 §10.24, Circular 230 §10.25, Circular 230 §10.27, Circular 230 §10.28, Circular 230 §10.29, Circular 230 §10.30, Circular 230 §10.33, Circular 230 §10.34, Circular 230 §10.35. This topic supports timed 100-question PSI-style mock tests and shorter topic review sessions.
Related practice-question themes include circular-230, duties, due-diligence, conflicts.
Topic overview
Official IRS sources
Related keywords
Frequently asked questions
Must a practitioner tell a client about an error?
Yes. Circular 230 requires advising the client of any noncompliance, error, or omission and its consequences.
Which part?
Part 3 (Representation).
Reference?
Treasury Circular 230.
Continue studying
More Practices & Procedures topics from Part 3
Appeals Process: IRS Appeals Process
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Circular 230: Circular 230 (Best Practices & Standards)
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Circular 230: Circular 230 (Sanctions & Disciplinary)
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Circular 230: Circular 230 (Who May Practice)
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EA Enrollment: EA Enrollment, Renewal & CE
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Examination Process: IRS Examination Process
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