Circular 230 Sanctions Practice Question
Work the complete fact pattern before revealing the explanation. This question is adapted from the IRS public sample set for the current exam law period.
Which statement from Circular 230 is correct regarding sanctions against an enrolled agent?
- A
Monetary and nonmonetary sanctions cannot both be imposed
- B
An enrolled agent can be imprisoned for up to three years under Circular 230
- C
An enrolled agent can be censured
Correct answer - D
A monetary penalty can exceed the gross income derived from the conduct
An enrolled agent can be censured
Censure is one of the sanctions authorized under Circular 230.
Transfer the reasoning, not the wording.
Restate the tested rule without the answer choices. Then change one decisive fact and explain which option would need to change. That short exercise makes the explanation retrievable instead of merely familiar.
Official sample source
PassFast adapted this public IRS sample for web practice and added the concise explanation above.