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This bug is created as a clone of upstream ticket:
https://fedorahosted.org/freeipa/ticket/2345

{{{
$ ipa user-add --first=tim --last=user tuser1 --password
Password: ^D ipa: ERROR: EOFError: 
Traceback (most recent call last):
  File "/usr/lib/python2.7/site-packages/ipalib/cli.py", line 1241, in run
    sys.exit(api.Backend.cli.run(argv))
  File "/usr/lib/python2.7/site-packages/ipalib/cli.py", line 1026, in run
    self.prompt_interactively(cmd, kw)
  File "/usr/lib/python2.7/site-packages/ipalib/cli.py", line 1173, in prompt_interactively
    param.label, param.confirm
  File "/usr/lib/python2.7/site-packages/ipalib/cli.py", line 586, in prompt_password
    pw1 = getpass.getpass(u'%s: ' % unicode(label))
  File "/usr/lib64/python2.7/getpass.py", line 71, in unix_getpass
    passwd = _raw_input(prompt, stream, input=input)
  File "/usr/lib64/python2.7/getpass.py", line 135, in _raw_input
    raise EOFError
EOFError
ipa: ERROR: an internal error has occurred

Fixed upstream.

master: efb37739ab1b3a7c9d87af7a2d8ed57a1d0d5abe

ipa-2-2: 5e745086a7801ee5fe3db098729158a4d6098753

    Technical note added. If any revisions are required, please edit the "Technical Notes" field
    accordingly. All revisions will be proofread by the Engineering Content Services team.
    
    New Contents:
No documentation needed.

verified ::  

# ipa user-add --first=tim --last=user tuser1 --password
Password: 
ipa: ERROR: Could not get Password interactively

version :: 

ipa-server-2.2.0-11.el6.i686

Since the problem described in this bug report should be
resolved in a recent advisory, it has been closed with a
resolution of ERRATA.

For information on the advisory, and where to find the updated
files, follow the link below.

If the solution does not work for you, open a new bug report.

http://rhn.redhat.com/errata/RHBA-2012-0819.html