Study guide
29.2 The "Clock" of Representation (Master Deadlines)
Enrolled Agent EA
Track your progress as you read
Finished sections get a check mark.
1 Part 1, Chapter 1: Tax Return Basics & Filing Requirements
1.1 Form 1040 Overview & Structure 1.2 Form 1040-SR for Seniors 1.3 Who Must File (Income Thresholds) 1.4 Filing Deadlines & Extensions (Form 4868) 1.5 Penalties: Failure to File vs. Failure to Pay 1.6 Sources of Tax Information (W-2s, 1099s, K-1s) 1.7 Preparer Due Diligence Requirements 1.8 Amended Returns (Form 1040-X)
2 Part 1, Chapter 2: Filing Status & Dependents
2.1 Single & Married Filing Jointly 2.2 Married Filing Separately 2.3 Head of Household Requirements 2.4 Qualifying Surviving Spouse 2.5 Qualifying Child Test (5 Tests) 2.6 Qualifying Relative Test (4 Tests) 2.7 SSN, ITIN & Residency Status
3 Part 1, Chapter 3: Wages & Employee Compensation
3.1 W-2 Income & Withholding 3.2 Employee vs. Independent Contractor 3.3 1099-NEC, 1099-MISC & 1099-K Reporting 3.4 Fringe Benefits (Taxable vs. Non-Taxable) 3.5 Stock Options (ISO vs. NQSO) 3.6 Special Categories (Clergy, Military, Foreign)
4 Part 1, Chapter 4: Interest, Dividends & Other Income
4.1 Taxable vs. Tax-Exempt Interest 4.2 US Savings Bonds & OID 4.3 Ordinary vs. Qualified Dividends 4.4 Schedule B Requirements 4.5 Rental & Royalty Income Basics 4.6 Alimony, Gambling & Other Income 4.7 Cancelled Debt & Form 1099-C 4.8 Net Operating Loss (NOL)
5 Part 1, Chapter 5: Capital Gains & Property Transactions
5.1 Capital vs. Non-Capital Assets 5.2 Cost Basis Calculation 5.3 Inherited & Gifted Property Basis 5.4 Short-Term vs. Long-Term Gains 5.5 Capital Gains Tax Rates (0%, 15%, 20%) 5.6 Netting & the $3,000 Loss Limit 5.7 Wash Sales & Related Party Rules 5.8 Sale of Primary Residence (Section 121) 5.9 Installment Sales (Form 6252) 5.10 Like-Kind Exchanges (Section 1031)
6 Part 1, Chapter 6: Adjustments to Income
6.1 Educator Expenses & HSA Contributions 6.2 Self-Employment Tax Deduction 6.3 IRA Contributions (Traditional) 6.4 Student Loan Interest Deduction 6.5 Alimony Paid (Pre-2019 Divorces) 6.6 Other Adjustments & New OBBBA Deductions (Tips, Overtime, Auto Loan, Senior Bonus)
7 Part 1, Chapter 7: Deductions (Standard & Itemized)
7.1 Standard Deduction by Filing Status 7.2 Medical & Dental Expenses (7.5% Floor) 7.3 State & Local Taxes (SALT $40K Cap) 7.4 Mortgage Interest Deduction 7.5 Charitable Contributions 7.6 Casualty & Theft Losses 7.7 QBI Deduction (Section 199A)
8 Part 1, Chapter 8: Tax Calculation & Credits
8.1 Tax Tables & Rate Schedules 8.2 Alternative Minimum Tax (AMT) 8.3 Self-Employment Tax Calculation 8.4 Child Tax Credit & Additional CTC 8.5 Earned Income Tax Credit (EITC) 8.6 Education Credits (AOC & LLC) 8.7 Child & Dependent Care Credit 8.8 Other Credits (Saver's, Premium Tax)
9 Part 1, Chapter 9: Retirement Accounts & Social Security
9.1 Traditional vs. Roth IRA 9.2 401(k), 403(b) & TSP Basics 9.3 SEP-IRA & SIMPLE IRA 9.4 Required Minimum Distributions (RMDs) 9.5 Early Withdrawal Penalties & Exceptions 9.6 Social Security Taxation
10 Part 1, Chapter 10: Specialized Individual Returns
10.1 Estate Tax (Form 706) 10.2 Gift Tax (Form 709) 10.3 Foreign Income (Form 2555) 10.4 FBAR & FATCA Reporting 10.5 Farm Income (Schedule F) 10.6 Disaster Area Rules
11 Part 2, Chapter 11: Business Entity Types
11.1 Overview of Entity Types 11.2 State Law vs. Tax Classification 11.3 Entity Selection: Reasonable Comp & QBI 11.4 Form 8832 & Rev. Proc. 2009-41 11.5 LLC Deep Dive: Spouses & EINs 11.6 Changing Status: The 60-Month Rule
12 Part 2, Chapter 12: Starting a Business
12.1 Hobby vs. Business (Profit Motive) 12.2 Employer Identification Number (EIN) 12.3 Tax Year Selection 12.4 Recordkeeping Requirements 12.5 Statute of Limitations 12.6 Related Party Transactions 12.7 Start-Up Costs, Entity Choice & OBBBA Business Changes (2025)
13 Part 2, Chapter 13: Worker Classification & Payroll
13.1 Employee vs. Independent Contractor 13.2 Common Law Test (Behavioral, Financial, Relationship) 13.3 Statutory Employees & Non-Employees 13.4 Form 941 & Payroll Deposits 13.5 Trust Fund Recovery Penalty 13.6 FUTA & Unemployment Taxes
14 Part 2, Chapter 14: Accounting Methods & Income
14.1 Cash vs. Accrual Method 14.2 Hybrid Methods & Changes 14.3 Inventory & COGS 14.4 Gross Receipts & Income Recognition 14.5 Constructive Receipt 14.6 Form 1099 Reporting Requirements 14.7 §163(j) Business Interest Expense Limitation 14.8 §174 Research & Experimental Expenditures
15 Part 2, Chapter 15: Depreciation & Asset Treatment
15.1 MACRS Basics & Recovery Periods 15.2 Mid-Month, Mid-Quarter, Half-Year Conventions 15.3 Section 179 Expense Deduction 15.4 Bonus Depreciation 15.5 Listed Property Rules 15.6 Amortization of Intangibles 15.7 Depletion 15.8 Disposition of Business Assets
16 Part 2, Chapter 16: Business Deductions
16.1 Ordinary & Necessary Test 16.2 Business Travel Expenses 16.3 Business Meals (50% Limitation) 16.4 Business Use of Vehicle 16.5 Home Office Deduction 16.6 Business Interest Limitation (163(j)) 16.7 Business Bad Debts
17 Part 2, Chapter 17: Business Credits & Fringe Benefits
17.1 General Business Credit Overview 17.2 R&D Credit & Disabled Access Credit 17.3 Small Employer Health Insurance Credit 17.4 Fringe Benefit Rules 17.5 Cafeteria Plans (Section 125) 17.6 Achievement Awards & Other Benefits
18 Part 2, Chapter 18: Sole Proprietorships
18.1 Schedule C Overview 18.2 Calculating Net Profit/Loss 18.3 Self-Employment Tax (Schedule SE) 18.4 Estimated Tax Payments 18.5 Hobby Loss Rules
19 Part 2, Chapter 19: Partnerships
19.1 Partnership Formation 19.2 Partner's Basis Calculation 19.3 Form 1065 Overview 19.4 Schedule K-1 (Partner's Share) 19.5 Guaranteed Payments 19.6 Partnership Distributions 19.7 At-Risk & Passive Activity Rules 19.8 Partnership Termination & Liquidation
20 Part 2, Chapter 20: C Corporations
20.1 Form 1120 Overview 20.2 Corporate Tax Rate (21%) & CAMT 20.3 Accumulated Earnings Tax 20.4 Dividends Received Deduction 20.5 Earnings & Profits (E&P) 20.6 Corporate Distributions, Dividends & Stock Redemptions 20.7 §351 Transfers, §1032, §1202 QSBS & Other Corporate Provisions 20.8 Corporate Liquidation
21 Part 2, Chapter 21: S Corporations
21.1 S Election Requirements (Form 2553) 21.2 Form 1120-S Overview 21.3 Shareholder Basis Calculation 21.4 Reasonable Compensation 21.5 S Corporation Distributions 21.6 Built-In Gains Tax & Termination
22 Part 2, Chapter 22: Specialized Business Returns
22.1 Trusts & Estates (Form 1041) 22.2 Simple vs. Complex Trusts 22.3 Distributable Net Income (DNI) 22.4 Tax-Exempt Organizations (Form 990) 22.5 Retirement Plans (Form 5500) 22.6 Qualified Retirement Plans Overview 22.7 Farm Taxation 22.8 Rental Real Estate Activities
23 Part 3, Chapter 23: Practice Before the IRS
23.1 What is Practice Before the IRS? 23.2 Who Can Practice (Full Rights) 23.3 Limited Practice Rights (AFSP, Unenrolled) 23.4 Special Relationships (Family, Employees) 23.5 PTIN Requirements 23.6 Circular 230 Overview 23.7 Office of Professional Responsibility (OPR)
24 Part 3, Chapter 24: Becoming & Maintaining EA Status
24.1 Two Paths to EA (Exam vs. IRS Experience) 24.2 Application Process (Form 23) 24.3 Background & Compliance Checks 24.4 Renewal Requirements (Form 8554) 24.5 Continuing Education Requirements 24.6 Inactive Status & Termination
25 Part 3, Chapter 25: Practitioner Duties (Circular 230)
25.1 Due Diligence Requirements 25.2 Knowledge of Client's Omission 25.3 Conflict of Interest Rules 25.4 Fee Requirements (Contingent, Unconscionable) 25.5 Advertising & Solicitation Rules 25.6 Tax Return Position Standards 25.7 Written Advice Standards 25.8 Sanctions & Penalties for Violations
26 Part 3, Chapter 26: Power of Attorney & Authorization
26.1 Form 2848 (Power of Attorney) 26.2 CAF (Centralized Authorization File) 26.3 Form 8821 (Tax Information Authorization) 26.4 Third-Party Designee 26.5 Signing Returns for Taxpayers 26.6 Client Confidentiality & Privilege 26.7 Representing Clients in Audits (Examination) 26.8 Appealing IRS Decisions 26.9 Collection Representation
27 Part 3, Chapter 27: Legal Authority & Research
27.1 Hierarchy of Tax Authority 27.2 Internal Revenue Code 27.3 Treasury Regulations 27.4 Revenue Rulings & Procedures 27.5 Court Cases & Precedent 27.6 Statutes of Limitations
28 Part 3, Chapter 28: Specific Representation Issues
28.1 Trust Fund Recovery Penalty (TFRP) 28.2 Innocent Spouse Relief (Form 8857) 28.3 Injured Spouse Allocation (Form 8379) 28.4 Penalty Abatement (FTA & Reasonable Cause) 28.5 Taxpayer Advocate Service (TAS) 28.6 Freedom of Information Act (FOIA)
29 Part 3, Chapter 29: Final Review & Exam Strategy
29.1 Exam Structure & Logistics (2026-2027) 29.2 The "Clock" of Representation (Master Deadlines) 29.3 Ethics vs. Law (Sanctions & Penalties) 29.4 Final Mock Review & Exam Strategy
30 Part 3, Chapter 30: Filing Process & E-File
30.1 E-File Requirements (The "More Than 10 Returns" Rule) 30.2 ERO Responsibilities 30.3 EFIN & Application Process 30.4 Form 8879 (Signature Authorization) 30.5 Record Retention & Data Security (WISP) 30.6 Preparer Penalties (Filing Specific)
29.2 The "Clock" of Representation (Master Deadlines)
Key Takeaways Explain This Topic AI
30 Days: Time to protest a "30-Day Letter" (Examination Report).
30 Days: Time to request a CDP Hearing after Final Notice of Intent to Levy.
90 Days: Time to petition Tax Court after "Statutory Notice of Deficiency".
3 Years: Statute for Assessment (General) and Refund Claims.
6 Years: Statute for Assessment (Substantial Omission > 25%).
10 Years: Statute for Collection (CSED).
2 Years: Time to request Innocent Spouse Relief (from first collection notice).
Last updated: October 2026
- The Clock of Representation: Master Deadlines
- Why This Matters for the Exam
Time limits are a core Part 3 topic. The IRS operates on strict deadlines, and missing one can cost a taxpayer their appeal rights, their refund, or their chance to contest a deficiency. As an EA, you'll be expected to know these cold.
The Master Deadline Table
This is the single most important table in Part 3. Memorize it.
- Event Time Limit From When? Form/Action
- 30-Day Letter Response 30 Days Date of letter Protest letter to Appeals
- 90-Day Letter (Tax Court) 90 Days Date of letter Petition to Tax Court
- CDP Hearing Request 30 Days Final Notice of Intent to Levy Form 12153
- Equivalent Hearing 1 Year Final Notice of Intent to Levy Form 12153 (late)
- Refund Claim (General) 3 Years from filing OR 2 Years from payment Whichever is later Form 1040-X or 843
- Assessment Statute (General) 3 Years From due date or filing date IRS must assess within this period
- Assessment (Substantial Omission) 6 Years From due date or filing date If > 25% gross income omitted
- Assessment (Fraud) Indefinite No limit Civil fraud (no statute)
- Collection Statute (CSED) 10 Years From date of assessment IRS must collect within this period
- Innocent Spouse Relief 2 Years From first collection notice Form 8857
- Injured Spouse Claim 3 Years From due date (or 2 years from payment) Form 8379
- OIC (Offer in Compromise) No deadline Any time debt exists Form 656
- Understanding the Key Deadlines
- The 30-Day Window: "30-Day Letters"
When the IRS completes an examination (audit), they issue a 30-Day Letter (also called an Examination Report or RAR - Revenue Agent Report). This letter proposes adjustments to the taxpayer's return.
Options within 30 Days:
Agree: Sign the report and pay the proposed tax (or set up a payment plan).
Disagree: File a written protest with the IRS Office of Appeals.
Do Nothing: The IRS will issue a Statutory Notice of Deficiency (90-Day Letter).
Exam Trap: The 30-day deadline is NOT jurisdictional. Missing it doesn't automatically result in assessment—it just means the IRS will escalate to a 90-Day Letter.
The 90-Day Window: "Statutory Notice of Deficiency"
If the taxpayer disagrees with the IRS's proposed adjustments (or doesn't respond to the 30-Day Letter), the IRS issues a Statutory Notice of Deficiency , commonly called a "90-Day Letter" or "Ticket to Tax Court."
Critical Rule: The taxpayer has exactly 90 days (150 days if abroad) from the date of the notice to file a petition with the U.S. Tax Court.
Why It Matters:
The Tax Court is the only court where you can challenge the IRS before paying the tax.
If you miss the 90-day deadline, you must pay the tax first, then sue for a refund in District Court or Court of Federal Claims.
Treat the 90-day deadline as strict: the Tax Court dismisses late petitions for lack of jurisdiction, although the Third Circuit ( Culp v. Commissioner , 2023) has held the deadline non-jurisdictional and subject to equitable tolling.
The 30-Day CDP Window: Collection Due Process
When the IRS issues a Final Notice of Intent to Levy , the taxpayer has 30 days from the date of the notice to request a Collection Due Process (CDP) Hearing . After a Notice of Federal Tax Lien is filed, the IRS must notify the taxpayer within 5 business days, and the 30 days run after that 5-day period (the lien notice shows the deadline).
What Happens at a CDP Hearing:
The taxpayer can challenge the appropriateness of the collection action.
The taxpayer can propose alternatives (Installment Agreement, Offer in Compromise, Currently Not Collectible status).
A Settlement Officer presides over the hearing.
If You Miss the 30-Day Deadline: You can still request an Equivalent Hearing within 1 year , but you lose the right to appeal to Tax Court.
The Statutes of Limitations
Assessment Statute (3 Years - General): The IRS generally has 3 years from the date the return was filed (or due, if later) to assess additional tax.
Assessment Statute (6 Years - Substantial Omission): If the taxpayer omits more than 25% of gross income , the statute extends to 6 years .
Assessment Statute (Fraud - Indefinite): If the taxpayer commits fraud , there is no statute of limitations . The IRS can assess tax at any time.
Collection Statute (10 Years - CSED): Once tax is assessed, the IRS has 10 years to collect it. This is called the Collection Statute Expiration Date (CSED). After 10 years, the debt expires (unless the statute was tolled).
Real-World Scenario
Scenario: A taxpayer receives a 90-Day Letter dated March 1, 2026. They are in the US.
Question: What is the deadline to petition Tax Court?
Answer: May 30, 2026 (90 days from March 1).
If they miss it: They must pay the tax first, then file a refund suit.
On the Exam
Question types to practice on deadlines:
Direct Questions: "How long does a taxpayer have to petition Tax Court after receiving a Statutory Notice of Deficiency?"
- Scenario Questions: "A taxpayer receives a CDP notice on June 1. By what date must they request a hearing?"
- Consequence Questions: "What happens if a taxpayer misses the 90-day deadline?"
The key is to memorize the table and understand what happens when each deadline is missed.