Fees, Advertising, and Solicitation
Learn the decision pattern the exam can test, then apply it to a realistic taxpayer fact pattern.
What changes the answer?
A fee arrangement may be restricted based on the matter, while truthful credential advertising can still require precise wording.
A tax-practice scenario
An EA proposes a percentage-of-refund fee and advertises guaranteed IRS outcomes. Test each statement and arrangement.
Identify the taxpayer, entity, transaction, and tax period first. Write the controlling tests in order, apply only the relevant facts, and keep the reporting result separate from any planning recommendation.
Do not take this shortcut.
Assuming client agreement cures an otherwise prohibited fee or misleading claim.
Turn the rule into recall.
Review engagement letters and public claims against the rule for the specific service and proceeding.
- ExplainState the governing distinction without notes.
- ApplyChange one fact in the scenario and predict the new result.
- RetrieveAnswer an unseen question, then review every option.
Official source and scope
This lesson follows the current PSI content outline and uses the IRS reference below for the underlying tax or practice framework. Always confirm current forms, instructions, thresholds, and effective dates before advising a taxpayer.