Current for the 2026-2027 EA examPSI scheduling update
EA Exam Part 3 / Practices and Procedures

Sanctions and Disreputable Conduct

Learn the decision pattern the exam can test, then apply it to a realistic taxpayer fact pattern.

By Jordan AshbyUpdated August 13, 2026Official IRS source below
Part 3Representation, Practices and Procedures
26 of 85questions in this domain
One decisionto practice before moving on

What changes the answer?

Disreputable conduct includes enumerated acts, but sanction analysis still requires facts, authority, and process.

A tax-practice scenario

An EA is convicted of an offense involving dishonesty and continues representing clients. Identify potential OPR consequences.

How to approach it

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 only tax crimes or return errors can affect practice eligibility.

Turn the rule into recall.

Learn sanction categories with the conduct examples and procedural path, not as an isolated penalty list.

  1. ExplainState the governing distinction without notes.
  2. ApplyChange one fact in the scenario and predict the new result.
  3. 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.