SEE Part 3 Domains Explained

The short version

Part 3 has four domains. The IRS bulletin gives the number of scored questions in each, out of 85: Practices and Procedures 26, Representation before the IRS 25, Specific Areas of Representation 20 and Filing Process 14. The shares below are our own arithmetic on those counts. The 15 unscored questions are not broken down by domain.

Domain 1: Practices and Procedures (26 questions, about 31%)

What it covers. Practice before the IRS and who may do it, the duties placed on practitioners by Circular 230, sanctionable conduct, and the rules and penalties that apply to return preparers. The outline lists information to be furnished to the IRS, errors and omissions, former IRS employees, advertising and solicitation, fees, due diligence, conflicts of interest, refund check negotiation, standards for written advice and return positions, continuing education, return of client records, prompt disposition of matters, PTIN rules and supervision.

In practice. A client leaves for another firm and asks for their records. A prospective client’s interests clash with an existing client’s. A colleague proposes a contingent fee. Each maps to a specific Circular 230 rule.

Typical traps.

Mixing up what needs written consent and what needs only disclosure.
Remembering that a fee dispute usually does not excuse you from returning client records.
Confusing the penalty for a position without substantial authority with the one for willful or reckless conduct.

What to practice. Write each duty as a one-line rule with its exception. Then practice scenarios that test the exception.

Domain 2: Representation before the IRS (25 questions, about 29%)

What it covers. Power of attorney, building the taxpayer’s case, the taxpayer’s financial situation, supporting documents, legal authority and related issues. The outline includes Form 2848 versus Form 8821, the CAF number, withdrawing or changing representatives, transcripts through e-services, authoritative versus non-authoritative sources (Code, regulations, revenue rulings and procedures, case law, the Internal Revenue Manual, private letter rulings), statutes of limitations, FOIA requests, the Taxpayer Advocate Service and identity theft.

Typical traps.

Treating Form 8821 as if it lets someone act for the taxpayer. It covers receiving or inspecting information.
Treating all IRS publications and manuals as binding authority.
Missing that criminal exposure changes how you handle a case.

What to practice. Walk through the lifecycle of an engagement: authorization, transcripts, research, documents, then position. Practice ranking sources by authority.

Domain 3: Specific Areas of Representation (20 questions, about 24%)

What it covers. Collection (extensions of time to pay, installment agreements, offers in compromise, collection appeals, liens, levies, currently not collectible status, summonses, the collection statute, the trust fund recovery penalty, amended returns and refund claims, passport revocation), penalty and interest abatement, audits and examinations, and Appeals.

Typical traps.

Choosing between collection due process and the collection appeals program: the facts decide, and the deadline matters.
Mixing up the lien, the notice of federal tax lien, and the levy.
Forgetting what stops or extends the collection statute.
Confusing the 30-day letter with the 90-day letter.

What to practice. Draw the path from audit to Appeals to Tax Court, and the path from balance due to levy. Mark each place where the taxpayer can appeal.

Domain 4: Filing Process (14 questions, about 16%)

What it covers. Accuracy and reliance on software, how long to keep returns and records, data security, and electronic filing: applying to be an e-file provider, the e-file mandate and its exceptions (Form 8948), advertising standards, the responsibilities of an electronic return originator (ERO), levels of infractions, EFIN revocation appeals, e-file authorization (Forms 8879 and 8453), and rejected returns.

Typical traps.

Mixing up Form 8879 and Form 8453.
Treating software output as proof of accuracy.
Mixing up what an ERO is responsible for and what a transmitter is.

What to practice. Make a short checklist of the e-file provider lifecycle: apply, comply, be reviewed, appeal.

How the domains fit together

The domains overlap. A single question can ask about a conflict of interest (Domain 1), the authorization form you need (Domain 2) and the collection option that fits (Domain 3). Study each domain, then do mixed sets.