About the exam
EA Part 2 Exam structure
IRS Enrolled Agent SEE Part 2 Businesses prep with 601 original practice questions, PSI 2026 content outline mapping, business-tax calculation drills, weighted mocks, flashcards, and topic recovery.
Issuer and path
Enrolled Agent Part 2 Exam Prep is administered through IRS / PSI. Check official resources before booking, retesting, or relying on a stale requirement.
Business Entities and Considerations
30 scored + 0 pretest
Entity classification, EINs, tax years, partnerships, corporations, S corporations, LLCs, tax-exempt entities, owner basis, distributions, filings, penalties, and audit rules.
Business Tax Preparation
37 scored + 0 pretest
Business income, expenses, COGS, payroll, depreciation, credits, QBI, NOLs, assets, accounting methods, financial statements, book-tax reconciliation, and business advising.
Specialized Returns and Taxpayers
18 scored + 0 pretest
Trusts and estates, exempt organizations, retirement plans, farmers, rental property, real estate professionals, passive losses, vacation homes, and specialized filing requirements.
Before you schedule
Confirm PTIN status, PSI registration, domestic or international window, ID requirements, remote or test-center options, the $317 per-part fee, and that the 2026 cycle uses tax law through Dec. 31, 2025.
Official Outline Coverage Map
Coverage is mapped to official outline item counts so content depth can be checked without hard-coding a single exam.
| Topic | Official outline items | Your questions | Your flashcards | Confidence |
|---|---|---|---|---|
| Entity Classification, EIN and Tax Year | 8 | 53 | 10 | Priority |
| Partnerships, Basis, Distributions and Audits | 8 | 53 | 10 | Priority |
| Corporations, Formation, Earnings and Distributions | 7 | 53 | 10 | Strong |
| S Corporations, Shareholder Basis and Elections | 7 | 53 | 10 | Priority |
| Business Income, COGS and Ordinary Expenses | 7 | 44 | 10 | Priority |
| Depreciation, Section 179, Assets and Dispositions | 6 | 44 | 10 | Priority |
| Employment Taxes and Payroll Reporting | 5 | 44 | 10 | Strong |
| QBI, Credits, NOLs and Other Business Taxes | 6 | 44 | 10 | Priority |
| Accounting Methods, Financial Records and Book-Tax Reconciliation | 6 | 43 | 10 | Priority |
| Advising the Business Taxpayer and Compliance | 7 | 43 | 10 | Strong |
| Estates, Trusts and Exempt Organizations | 7 | 43 | 10 | Priority |
| Retirement Plans and Farmers | 6 | 42 | 10 | Strong |
| Rental Property and Specialized Taxpayers | 5 | 42 | 10 | Priority |
How to use this guide
How to study for EA Part 2
Build every answer around entity classification, filing obligation, owner basis, income and deduction character, payroll duties, accounting records, and specialized taxpayer rules.
1. Identify entity and filing duty
Check business form, election, owner type, tax year, EIN, return, and information reporting.
2. Classify the item
Income, COGS, expense, asset, payroll, credit, basis, distribution, accounting method, or specialized return.
3. Apply limits and records
Check basis, depreciation, QBI, passive limits, payroll deposits, substantiation, due dates, and book-tax differences.
4. Confirm return effect
Tie the answer to the business return, schedule, K-1, payroll form, owner return, penalty, or future-year planning.
Entity Classification, EIN and Tax Year
This topic covers sole proprietorships, partnerships, corporations, S corporations, LLC default classifications and elections, EINs, accounting periods, W-2 and 1099 reporting, and hobby versus business analysis.
Key rules
Rule 1
Entity Classification, EIN and Tax Year questions test whether an enrolled agent candidate can apply business tax rules to entity, return, owner, and recordkeeping facts.
Exam cue: Identify the entity, tax year, owner role, form, accounting method, record source, and whether the issue is income, deduction, credit, basis, payroll, or advice.
Rule 2
The best answer usually identifies the business form, tax year, filing obligation, income or deduction character, owner-level consequence, and penalty exposure before calculating.
Exam cue: Check basis, distributions, depreciation, employment tax deposits, QBI limits, method changes, due dates, penalties, and information reporting.
Rule 3
Eliminate answers that ignore entity classification, basis, payroll deposits, accounting method, book-tax reconciliation, or specialized taxpayer filing requirements.
Exam cue: Tie the result to the correct business return, schedule, K-1, payroll form, book-tax reconciliation, owner basis, or specialized taxpayer return.
Common traps
Solving as if every business were a sole proprietorship instead of respecting entity classification and owner-level rules.
Prevention: Name the controlling rule before selecting the answer.
Calculating a deduction or credit without checking basis, at-risk limits, passive limits, depreciation elections, or payroll compliance.
Prevention: Name the controlling rule before selecting the answer.
Missing specialized taxpayers such as trusts, estates, exempt organizations, retirement plans, farmers, and rental real estate.
Prevention: Name the controlling rule before selecting the answer.
Memory anchors
Sole Proprietorship
A sole proprietorship reports business income on the owner's individual return and is not a separate income tax entity.
Partnership
A partnership generally files an information return and passes separately stated items to partners on Schedule K-1.
Corporation
A corporation is a separate tax entity unless a valid S election changes pass-through treatment.
S Corporation
An S corporation passes items to shareholders and must satisfy eligibility and election requirements.
LLC Classification
An LLC's federal tax classification depends on owners and elections rather than state-law label alone.
EIN
An employer identification number identifies a business for employment, information return, and entity filing purposes.
Tax Year
A business tax year may be calendar, fiscal, or required by entity rules and elections.
Information Reporting
Forms W-2 and 1099 report compensation, payments, and other business transactions to taxpayers and the IRS.
Hobby Loss
A hobby versus business determination affects whether losses and deductions are allowed as business expenses.
Entity Election
Entity elections must be timely and consistent with the taxpayer's facts and requested classification.
Next best moves
Quick check-up
Use a short quiz to confirm the rule pattern is actually sticking.
Check-up Questions
A domestic LLC has one individual owner and has filed no entity-classification election. How is it generally treated for federal income tax?
Three individuals form a domestic LLC and make no federal classification election. Which return will the LLC generally file?
Answer all questions to submit.
Next step personalized recommendations
Open another topic next
Official resources
Verify the details with the official sources
Use these links for eligibility, scheduling, handbook rules, and issuer updates. Our guide helps you study; official sources tell you what the testing partner currently requires.
IRS Become an Enrolled Agent
IRS page covering the path to enrolled agent status and the 2026 PSI testing transition.
IRS Enrolled Agent FAQ
IRS FAQ with SEE parts, question counts, timing, tax-year basis, scheduling, fees, and testing windows.
PSI SEE Candidate Information Bulletin
PSI Candidate Information Bulletin with the current SEE examination topics and Part 2 content outline.
FAQ
Common EA Part 2 questions
Is this official IRS exam content?
No. These are original practice questions aligned to the public IRS/PSI Candidate Information Bulletin. They are not copied from secure SEE items.
What does EA Part 2 cover?
The IRS/PSI outline organizes Part 2 into Business Entities and Considerations, Business Tax Preparation, and Specialized Returns and Taxpayers.
How is the weighted mock built?
The mock uses the IRS/PSI Part 2 scored-outline weights: 30, 37, and 18 scored items, scaled to a 100-question practice set.
Does this reflect the 2026 testing vendor change?
Yes. The overview links to IRS guidance noting the 2026 transition to PSI and the 2026 domestic and international testing windows.
How should I use math mode?
Use math mode for basis, distributions, depreciation, section 179, QBI, payroll deposits, book-tax reconciliation, trust income, farm income, and rental loss calculations.