FREE Enrolled Agent Study Guide 2026: All 3 Parts

This free Enrolled Agent study guide walks through everything the IRS Special Enrollment Examination (SEE) tests across all three parts, organized to the official Prometric content outlines.^[1]

It’s interactive, not a wall of text: every part has built-in checkpoint quizzes, flashcards, and practice questions, so you learn by doing — not just reading.

An enrolled agent is a federally authorized tax practitioner with the same unlimited rights to represent taxpayers before the IRS as a CPA or attorney. You earn the credential by passing the three-part Special Enrollment Examination: Part 1 (Individuals), Part 2 (Businesses), and Part 3 (Representation, Practices & Procedures).

We teach each part as one module, lead with the heaviest content, and test you at every step. Read a part, take the checkpoint, then drill gaps with our free practice test and flashcards.

This is a high-yield overview that maps the official outline — not a full tax textbook.

Enrolled Agent Exam Snapshot

Each part is its own appointment with its own scaled score, so plan and study one part at a time. The questions are not evenly spread within a part — the official outline gives each domain a set number of scored questions, so study by weight:^[1]

Part 1 · Individuals

The first SEE part covers the Form 1040 world: who must file, what counts as income, what reduces it, and how the tax and credits are figured. It has six official domains. If you prepare individual returns, much of this will feel familiar — the exam just demands precision on the rules and the current-year numbers.

1.1 Preliminary Work & Taxpayer Data

Every return starts with the basics: filing status, dependents, and the taxpayer’s identifying information. The five statuses are Single, Married Filing Jointly, Married Filing Separately, head of household, and qualifying surviving spouse. Marital status is determined on the last day of the tax year, and you choose the status that produces the lowest tax the taxpayer is entitled to.^[5]

Claiming a dependent unlocks filing status, the Child Tax Credit, and other benefits. A qualifying child must meet the relationship, age, residency, support, and joint-return tests; a qualifying relative is tested on relationship/household, gross income, and support. Taxpayers without a Social Security number use an ITIN, and certain foreign-account holders must file an FBAR or Form 8938.

1.2 Income & Assets

Almost everything is taxable income unless the law specifically excludes it — wages, interest, dividends, business income, retirement distributions, and gains on property. The path runs from total income to adjusted gross income (after above-the-line deductions) to taxable income.

Property is a heavy topic. A capital gain is the profit over the asset’s basis — generally cost plus improvements.

Hold an asset more than a year and the gain is long-term, taxed at preferential rates; a year or less and it is short-term, taxed as ordinary income. Net capital losses offset up to $3,000 of ordinary income per year, with the rest carried forward.^[7]

Know the home-sale exclusion (Section 121: up to $250,000 single / $500,000 MFJ) and that retirement distributions can be taxable with possible early-withdrawal penalties before age 59½.

1.3 Deductions & Credits

A taxpayer subtracts the greater of the standard deduction or total itemized deductions (Schedule A: medical over 7.5% of AGI, state and local taxes capped at $40,000 for 2025, mortgage interest, and charity). The crucial exam distinction is between a deduction and a tax credit: a deduction reduces taxable income (value depends on the bracket), while a credit reduces tax dollar-for-dollar — and a refundable credit can even produce a refund.

The big individual credits: the Child Tax Credit (up to $2,200 per child under 17 for the 2025 tax year, up to $1,700 refundable),^[6] the earned income tax credit (refundable, larger with more children — a high preparer due diligence area), and the two education credits — the American Opportunity Tax Credit and the Lifetime Learning Credit.

1.4 Taxation

Beyond the regular income tax, individuals can owe several add-on taxes the SEE loves to test. Self-employment tax (15.3% up to the Social Security wage base, 2.9% Medicare above it) applies to net earnings from self-employment, with half deductible above the line.

The Alternative Minimum Tax (AMT) is a parallel system that recaptures the benefit of certain preferences. High earners may owe the 3.8% Net Investment Income Tax and the 0.9% Additional Medicare Tax.

1.5 Advising the Individual Taxpayer

This domain tests judgment, not just rules: helping a taxpayer plan around life events. Marriage, divorce, and death change filing status, dependency, and property treatment — including community-property rules in some states and the taxation (or not) of alimony depending on the divorce date. Education and retirement planning (529 plans, IRA and employer-plan contributions) and recognizing when to file an amended return (Form 1040-X) or seek innocent- or injured-spouse relief all live here.

1.6 Specialized Returns for Individuals

The final Part 1 domain covers estate, gift, and international reporting for individuals. The federal gift tax has an annual exclusion ($19,000 per donee for 2025) and a lifetime exemption; gifts over the annual exclusion are reported on Form 709.

The estate tax (Form 706) applies to large estates, and an estate or trust with income files Form 1041. International reporting separates the FBAR (FinCEN Form 114) from Form 8938, with different thresholds and filing channels.

Part 2 · Businesses

Part 2 is the broadest and, for most candidates, the hardest SEE part. It covers how every kind of business is structured and taxed, the mechanics of preparing a business return, and a long tail of specialized entities. Its three official domains carry 30, 37, and 18 scored questions respectively — Business Tax Preparation is the single largest tested area on the whole exam.

2.1 Business Entities & Considerations

Start by knowing how each entity is taxed and what it files. A sole proprietorship and a single-member LLC report on Schedule C; a partnership files Form 1065; an S corporation files Form 1120-S; and a C corporation files Form 1120 and pays a flat 21% tax — then its dividends are taxed again to shareholders, the classic double taxation.^[8] A pass-through entity avoids entity-level tax by reporting income to its owners on Schedule K-1.

Within partnerships, master basis (it limits deductible losses and is increased by income and contributions, decreased by losses and distributions) and guaranteed payments. For S corporations, know the eligibility limits (100 shareholders, one class of stock, Form 2553 election) and that distributions in excess of basis are taxable gain. For C corporations, know earnings & profits, the dividends-received deduction, and the accumulated earnings tax.

2.2 Business Tax Preparation

The largest tested area is the actual mechanics of a business return. Income is gross receipts minus cost of goods sold (which brings in inventory and UNICAP rules).

The biggest deduction topic is depreciation: the regular MACRS recovery, plus Section 179 expensing and bonus depreciation that let a business deduct asset cost faster. Owners may also claim the qualified business income deduction — up to 20% of pass-through income, limited above thresholds and for a specified service trade or business.^[9]

Round it out with the net operating loss rules (carryforward offsetting up to 80% of later income), accounting methods and changes (Form 3115), the home-office deduction, worker classification (employee vs. independent contractor), and information returns (Forms 1099 and 8300). The book-to-tax reconciliation (Schedule M-1) is a frequent question source.

2.3 Specialized Returns & Taxpayers

The last Part 2 domain is a survey of less common filers. Estates and trusts (Form 1041) pass income to beneficiaries through distributable net income on a K-1.

Tax-exempt organizations apply on Form 1023/1024, file Form 990, and can owe tax on unrelated business income (UBTI). Retirement plans (SEP, SIMPLE, qualified plans) have contribution limits and prohibited-transaction rules.

Farmers (Schedule F) and rental real estate (the $25,000 passive-loss allowance, phased out by MAGI, and the real-estate-professional rules) round it out.

Part 3 · Representation, Practices & Procedures

Part 3 is what makes an enrolled agent an enrolled agent. It tests the rules of practice (Circular 230), how to represent a taxpayer, the collection and examination process, and the e-file/filing mechanics. Its four official domains carry 26, 25, 20, and 14 scored questions — the rules of practice and representation together dominate.

3.1 Practices & Procedures (Circular 230)

The backbone of Part 3 is Circular 230 — the Treasury regulations governing practice before the IRS.^[10] It defines who may practice (attorneys, CPAs, enrolled agents, and others), and a practitioner’s duties: exercise due diligence (§10.22), advise a client of known errors or omissions (§10.21), promptly return client records on request (§10.28), avoid conflicts of interest without informed written consent (§10.29), and observe the fee rules (no unconscionable fees; contingent fees restricted, §10.27).

Violations are enforced by the Office of Professional Responsibility (OPR), which can censure, suspend, disbar, or impose monetary penalties.^[11] This domain also covers the EA’s own housekeeping — the PTIN, enrollment, and continuing education — and the preparer penalties and due-diligence rules (such as §6695).

3.2 Representation Before the IRS

To represent a taxpayer, you need authority. A power of attorney (Form 2848) lets you argue, sign certain documents, and receive confidential information; a tax information authorization (Form 8821) only lets you receive information, not advocate.^[12]

Both route through the Centralized Authorization File (CAF). You also need to know the hierarchy of tax authority — the Internal Revenue Code, then Treasury regulations, then rulings and case law — and the statute of limitations (generally 3 years to assess, 10 to collect).

Building a case includes understanding a client’s ability to pay, which drives the collection alternatives: an installment agreement, an offer in compromise,^[13] or currently not collectible status. The IRS uses Collection Financial Standards to evaluate allowable living expenses, and the Taxpayer Advocate Service (TAS) helps when normal channels fail.

3.3 Specific Areas of Representation

This domain walks the dispute lifecycle. In an examination, know the §7525 practitioner privilege, the Revenue Agent Report, the 30-day letter, the CP-2000 (underreporter) notice, and burden of proof.

If unresolved, the notice of deficiency (the 90-day letter) opens the door to U.S. Tax Court without prepaying. In collection, know liens and levies, collection due process hearings (Form 12153), the trust fund recovery penalty, audit reconsideration, claims for refund (Form 843, Form 1040-X), and penalty abatement.

Underpinning all of it is the line between tax avoidance (legal planning) and tax evasion (a crime). An EA may advise on lawful avoidance but must never assist evasion, and must advise the client of errors (§10.21).

3.4 The Filing Process

The final domain is the practical mechanics of filing — increasingly electronic. An authorized e-file provider (ERO) needs an EFIN; preparers who file more than a small number of returns must e-file (with Form 8948 documenting any paper exceptions). Know the signature forms (Form 8879 for e-file authorization, Form 8453), the Identity Protection PIN, record-retention and data-security duties, and the rules for relying on tax software.

How to Use This Enrolled Agent Study Guide

This guide is built to be worked, not just read. The most efficient path to passing all three parts:

• Study one part at a time. Each part is its own appointment and its own scaled score — finish and pass one before splitting focus.
• Sequence smartly. Many candidates start with Part 1 (Individuals) or Part 3 (Representation) and save Part 2 (Businesses), the broadest part, for a dedicated push.
• Check off as you go. Use the Study Guide Contents to mark each domain done; it raises your exam-readiness score.
• Take every checkpoint. The end-of-part quizzes show you exactly which domains need another pass.
• Drill the weak domain. Send your weak area into the flashcards and a practice test until the score climbs comfortably above 105.
• Mind the tax year. Study the figures for the year your testing window covers (2025 tax law for the July 2026–Feb 2027 window).

Enrolled Agent Glossary

The high-yield tax and representation terms in one place — hover any dotted term in the guide, or flip the whole deck here as a self-grading flashcard set.

Above-the-line deduction

An adjustment to income subtracted from total income to reach adjusted gross income, available whether or not the taxpayer itemizes.

Adjusted gross income

Total (gross) income minus above-the-line adjustments such as deductible IRA contributions, student-loan interest, and the deductible part of self-employment tax.

Adjusted gross income phaseout

The income range over which a deduction or credit is gradually reduced as modified AGI rises.

American Opportunity Tax Credit

An education credit up to $2,500 per student for the first four years of college, 40$1,000.

Basis

A taxpayer's investment in property for tax purposes — usually cost plus improvements — used to figure gain or loss on a sale.

C corporation

A corporation taxed separately at a flat 21% rate, whose dividends are taxed again to shareholders — double taxation; files Form 1120.

Capital gain

Profit on the sale of a capital asset; long-term (held more than one year) gains are taxed at preferential 0%, 15%, or 20% rates.

Centralized Authorization File

The IRS database (CAF) that records third-party authorizations and assigns each representative a CAF number.

Child Tax Credit

A credit up to $2,200 per qualifying child under 17 for the 2025 tax year, up to$1,700 of it refundable, phasing out above $400,000 MFJ /$200,000 others.

Circular 230

Treasury Department regulations (31 CFR Part 10) governing practice before the IRS — duties, standards, restrictions, and sanctions for practitioners.

Collection due process

A hearing right (Form 12153) a taxpayer can request after a lien or levy notice to dispute the collection action.

Continuing education

The 72 hours every three years (including 6 hours of ethics, minimum 16 hours per year) an enrolled agent must complete to keep the credential.

Currently not collectible

A status that pauses IRS collection when a taxpayer cannot pay basic living expenses and the debt.

Dependent

A qualifying child or qualifying relative the taxpayer can claim, which can unlock filing status, credits, and other benefits.

Depreciation

The deduction that spreads the cost of business property over its useful life; Section 179 and bonus depreciation can accelerate it.

Due diligence

A practitioner's Circular 230 duty to take reasonable care in preparing returns and advising clients, and the §6695(g) standard for certain credits.

Earned income tax credit

A refundable credit for low-to-moderate-income workers, larger with more qualifying children; a high preparer due-diligence area.

EFIN

The Electronic Filing Identification Number the IRS issues to an authorized e-file provider (ERO) to file returns electronically.

Enrolled agent

A federally authorized tax practitioner empowered by the U.S. Treasury to represent any taxpayer before the IRS on any tax matter, with unlimited practice rights.

Filing status

The category (Single, MFJ, MFS, Head of Household, or Qualifying Surviving Spouse) that sets a taxpayer's standard deduction, rate brackets, and credit eligibility.

Guaranteed payment

A fixed payment to a partner for services or capital, deductible by the partnership and generally subject to self-employment tax.

Head of household

A status for an unmarried taxpayer who pays more than half the cost of a home for a qualifying person more than half the year; larger deduction and lower rates than Single.

Installment agreement

A payment plan that lets a taxpayer pay a tax debt over time in monthly amounts.

Itemized deductions

Specific allowable expenses (e.g., medical, state and local taxes, mortgage interest, charity) reported on Schedule A in place of the standard deduction.

Lifetime Learning Credit

An education credit up to $2,000 per return for any years of higher education or job-skill courses; entirely nonrefundable.

Net operating loss

A business loss that exceeds income; it can generally be carried forward to offset up to 80% of future taxable income.

Notice of deficiency

The 90-day letter (statutory notice) that lets a taxpayer petition the U.S. Tax Court before paying the disputed tax.

Offer in compromise

An agreement to settle a tax debt for less than the full amount when full payment is impossible or liability is doubtful.

Office of Professional Responsibility

The IRS office (OPR) that enforces Circular 230 and disciplines practitioners through censure, suspension, disbarment, or monetary penalties.

Partnership

A pass-through entity filing Form 1065 that reports each partner's distributive share on Schedule K-1.

Pass-through entity

A business (sole proprietorship, partnership, S corporation) whose income is taxed on the owners' returns rather than at the entity level.

Power of attorney

Form 2848, which authorizes a practitioner to represent and act for a taxpayer before the IRS.

PTIN

The Preparer Tax Identification Number every paid preparer (including enrolled agents) must obtain and renew annually.

Qualified business income deduction

The Section 199A deduction of up to 20% of qualified business income for eligible pass-through owners, subject to thresholds and limits.

Qualifying child

A dependent meeting the relationship, age, residency, support, and joint-return tests; central to the Child Tax Credit and EITC.

Qualifying surviving spouse

A status available for two years after a spouse's death for a taxpayer with a dependent child; uses joint rates and the joint standard deduction.

Refundable credit

A credit (e.g., EITC, the Additional Child Tax Credit) that can be paid out as a refund even when it exceeds the tax owed.

S corporation

A pass-through corporation (Form 1120-S + K-1) limited to 100 eligible shareholders and one class of stock, electing on Form 2553.

Schedule K-1

The form that reports each owner's share of a pass-through entity's income, deductions, and credits to report on their own return.

Section 179

An election to expense (deduct immediately) the cost of qualifying business property up to an annual limit, instead of depreciating it.

Self-employment tax

The Social Security and Medicare tax (15.3% up to the wage base, 2.9% above) paid by self-employed individuals on net earnings.

Special Enrollment Examination

The three-part IRS exam (SEE) — Individuals, Businesses, and Representation — that a candidate passes to become an enrolled agent.

Specified service trade or business

A business in fields such as health, law, accounting, or consulting whose QBI deduction is limited or eliminated above income thresholds.

Standard deduction

A fixed dollar amount that reduces taxable income, taken instead of itemizing; for the 2025 tax year it is $15,750 single,$31,500 married filing jointly.

Statute of limitations

The time limit for the IRS to assess (generally 3 years) or collect (generally 10 years) tax, with exceptions.

Tax avoidance

The legal minimization of tax using the code's deductions, credits, and structuring — lawful planning.

Tax credit

An amount that reduces tax dollar-for-dollar; refundable credits can produce a refund beyond zero tax, nonrefundable credits cannot.

Tax evasion

The illegal, willful attempt to defeat tax by concealing income or falsifying records — a federal crime.

Tax information authorization

Form 8821, which lets a third party receive and inspect a taxpayer's information but grants no authority to represent.

Enrolled Agent Study Guide FAQ

References

1. 1.Internal Revenue Service. “Publication 5279, Your Pathway to Becoming an Enrolled Agent.” irs.gov. ↑
2. 2.Internal Revenue Service. “Enrolled Agents — Frequently Asked Questions.” irs.gov. ↑
3. 3.Internal Revenue Service. “Become an Enrolled Agent.” irs.gov. ↑
4. 4.Internal Revenue Service. “IRS releases tax inflation adjustments for tax year 2025 (Rev. Proc. 2024-40).” irs.gov. ↑
5. 5.Internal Revenue Service. “Publication 501, Dependents, Standard Deduction, and Filing Information.” irs.gov. ↑
6. 6.Internal Revenue Service. “Child Tax Credit.” irs.gov. ↑
7. 7.Internal Revenue Service. “Topic No. 409, Capital Gains and Losses.” irs.gov. ↑
8. 8.Internal Revenue Service. “Business Structures.” irs.gov. ↑
9. 9.Internal Revenue Service. “Qualified Business Income Deduction.” irs.gov. ↑
10. 10.U.S. Department of the Treasury. “Treasury Department Circular No. 230 (Regulations Governing Practice before the IRS).” irs.gov. ↑
11. 11.Internal Revenue Service. “Office of Professional Responsibility and Circular 230.” irs.gov. ↑
12. 12.Internal Revenue Service. “About Form 2848, Power of Attorney and Declaration of Representative.” irs.gov. ↑
13. 13.Internal Revenue Service. “Offer in Compromise.” irs.gov. ↑
14. 14.Internal Revenue Service. “Maintain Your Enrolled Agent Status (continuing education).” irs.gov. ↑
15. 101.Internal Revenue Service. “Credits and Deductions for Individuals.” irs.gov, accessed 19 June 2026. ↑
16. 102.Internal Revenue Service. “Earned Income Tax Credit (EITC).” irs.gov, accessed 19 June 2026. ↑
17. 103.Internal Revenue Service. “Education Credits: AOTC and LLC.” irs.gov, accessed 19 June 2026. ↑
18. 104.Internal Revenue Service. “S Corporations.” irs.gov, accessed 19 June 2026. ↑
19. 105.Internal Revenue Service. “About Schedule K-1 (Form 1065).” irs.gov, accessed 19 June 2026. ↑
20. 106.Internal Revenue Service. “Enrolled Agent Information.” irs.gov, accessed 19 June 2026. ↑

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