When preparing yourself for your upcoming test, you need to know what is covered on the enrolled agent certification exam. Having this information before you sit down and practice will help you focus your efforts. You’ll be able to make efficient use of your study time and increase your chances of a successful exam. Additionally, you’ll know what to expect. So, don’t let anything catch you off guard.
General Details About the Test
Before getting into the substance of the exam, there are a few general details you should know to prepare. The first is that there are three sections to the test; each section contains roughly 100 questions you need to answer. As the test taker, you do not need to complete every section in one sitting; you can have some time between each one.
Go in knowing how many questions to expect, so you don’t overwhelm yourself. Know you can have breaks to decompress after every section. Use this free time to destress and refocus yourself on the remaining questions.
What You Can Expect To See
Each of the three exam sections covers a different aspect of the profession. Make sure to prepare yourself for the following topics.
Individuals
When working in the financial field—especially accounting—you will deal with individuals. Within the test, you will need to know several different aspects of individual accounting. These include the following:
Preliminary Information of Client. This includes personal information, taxpayer filing status, foreign accounts, minor children’s unearned income, and qualification of dependency.
The Client’s Income and Assets. This encompasses their taxable wages, personal property rentals, royalties, passive income, a constructive receipt of income.
Deductions and Credits. This contains dental, medical, and vision expenses, charity contributions, and interest expenses.
Businesses
Aside from individual people, you need to also have knowledge regarding businesses. This section includes information on the following topics:
The different kinds of business entities, partnerships, and what it takes to form a corporation.
Filing business income tax, knowing expenses, deductibles, and debts.
Analysis of financial records and business assets.
Representations, Practices, And procedures
The final section covers general agent information, which includes the following:
What constitutes sanctionable acts.
The requirements and responsibilities of power of attorney.
Auditing a taxpayer’s financial situation.
Understanding legal documents and authority.
Know How To Prepare
This is a general outline of what to expect on your enrolled agent certification exam. There are many ways to prepare yourself for your examination; one such way is using an enrolled agent prep exam. These provide an approximation of what you’ll see on the real test and will have advice and insight into your strengths and weaknesses regarding the exam.
