EA Exam Part 1, 2, & 3: What’s Actually on the EA Exam?

The IRS’s EA Exam is the single most important milestone on your journey to becoming an Enrolled Agent and growing your tax career. It consists of three separate exam parts, each with 100 multiple choice questions. Understand what you’ll need to know to pass EA Exam Part 1, 2, and 3 to avoid surprises on exam-day and boost your success! 

Summary 

The IRS Enrolled Agent (EA) Exam is a three-part assessment that evaluates a candidate's knowledge of individual taxation, business taxation, and representation, practices, and procedures. 

What’s on the EA Exam Part 1? 

The EA Exam Part 1: Individual Taxation covers everything that tax professionals must understand to provide top services for individual clients. 

You will be tested on your knowledge of preliminary work and taxpayer data, income and assets, deductions and credits, and taxation regulations. Likewise, you must know the technical details of advising the individual taxpayer, including his/her reporting obligations, retirement planning, and more. 

Also expect questions that cover specialized returns for individuals—topics like estate tax, gift tax, and international information reporting. 

What’s on the EA Exam Part 2? 

While EA Exam Part 1 focuses on individuals, EA Exam Part 2 focuses solely on Business Taxation. 

Expect to be tested on: 

• Business entities and considerations 
  • Business entities, partnerships, corporations in general, forming a corporation, and S corporations 
• Business tax preparation 
  • Business income, expenses, deductions, credits, assets, record analysis, and advising 
• Specialized returns and taxpayers 
  • Trust and estate income tax, exempt organizations, retirement plans, farmers, and rental properties 
     

What’s on the EA Exam Part 3?

EA Exam Part 3: Representation, Practices, and Procedures tests your understanding of an EA’s role and authority, and how to apply that expertise (and how not to) for your clients. 

You should understand what constitutes practice before the IRS and the requirements that Enrolled Agents must meet in their work. You should also know what not to do, and the rules and penalties that go along with an EA’s practice. 

The exam will also test your knowledge of representation before the IRS: defining and implementing power of attorney, building the taxpayer’s case, understanding the financial situation, gathering documentation, and leveraging your legal authority. 

You’ll be tested on specific areas of representation—be it during the collection process or while facing penalties—and need to demonstrate your knowledge of representing in the audit process and appeals. 

And finally, expect to face questions dedicated to the filing process: from accuracy to record maintenance and electronic filing. 

How to Prepare for the EA Exam Part 1, 2, & 3 

Knowing what topics you’ll face on EA Exam day isn’t quite the same as understanding them. But Becker’s EA Exam Review combines expert video instruction, textbooks, and adaptive learning tools to walk you step-by-step toward being ready to pass EA Exam Part 1, 2, and 3. 

Try Becker’s EA Exam Review FREE for 14 days and experience how clear guidance and extensive support make all the difference in your exam-day success! 

Try Becker's EA Exam Review FREE for 14 days!

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