Top 20 Enrolled Agent Sample Questions That You Must Answer for Exam Success! Sections Covered Enrolled Agent Sample Questions A Pro Tip for EA Students Conclusion Schedule a call Enrolled agents with their certified tags are always in demand. With the changing face of tax laws and regulations, clients favor tax specialists who have earned the federal-approved certification, whether businesses or individuals.To make things work for you on the professional part, opt for an EA course and complete it within a year or so with the active guidance of a training institute of repute. You can consider NorthStar Academy as they have an impressive success record of helping students earn the EA degree. Earning an EA certification is not easy, but you can smooth your academic progress path if you get the right guidance. When preparing for the special enrollment exam, make use of a practice exam to familiarize yourself with the direct questions and ensure you understand the tax code thoroughly. The exam consists of three parts, and you’ll need to prepare thoroughly using resources such as the free EA study guides and EA exam materials to ensure success.Using practice questions as part of your study routine can help you navigate the special enrollment examination and improve your chances of passing the exam. The EA exam questions will test your knowledge of the tax code, so practicing with sample questions is a good way to prepare for what you’ll face at the test center. At the test center, you will be allowed to read each question carefully. It’s crucial to read the question thoroughly to answer every question correctly.Are you all set to take the exams? Need some confidence-boosting in a pseudo-setting where you can experience the real exam-taking vibe? Make the most of the practice papers and sample questions that will make your brain work in the right way so that you can easily cruise through the complexities of the EA exam and crack it. Let’s take you through some EA sample questions along with their answers that will give you a fair idea of how to prepare for the exam. Key Takeaways Enrolled Agent Sample Questions A Pro Tip for EA Students Enrolled Agent Sample Questions The enrolled agent exam consists of 100 multiple-choice questions, divided into three main sections of the EA exam that cover different aspects of tax representation. To prepare for the enrolled agent exam, you should focus on enrolled agent exam study materials, including sample enrolled agent exam questions, to understand the question types and exam structure. The exam structure and number of correct answers required for passing are crucial parts of the journey to becoming an enrolled agent, so be sure to thoroughly review enrolled agent exam review materials. Understanding the benefits of the enrolled agent designation, including the many benefits of the enrolled agent career path, can help you stay motivated as you prepare for the exam.These are some of the EA sample questions that you need to be aware of, and these might just appear in your exam for Enrolled Agent certification. 1. Which statement accurately describes a personal casualty loss?A. It is lowered by your standard deduction.B. Loss of property due to progressive deterioration is not deductibleC. It must be under 10% of your adjusted gross income.D. It is deducted over a consecutive three-year period.Answer: B2. Which phrase can be used by an enrolled agent to promote services and highlight his / her professional designation?A. Licensed to practice before the IRSB. Enrolled as an IRS representative C. Getting the right to practice before the IRSD. Certified to represent clients before the IRSAnswer: B3. On which Schedule or Form do taxpayers need to report all their income as Direct Sellers?A. Schedule 1, line 21B. Schedule EC. Schedule CD. Form 1040, line 1Answer: C4. The Net Investment Income Tax can apply to which of these?A. Taxable mutual fund distributionB. AlimonyC. Traditional IRA distributionD. Tax-exempt municipal bond interestAnswer: A5. When does the interest on US savings bonds not be taxable?A. When an individual pays a reduced rent that is government-subsidized B. Mortgage interest is paid with accuracy for a rental property C. Household income exceeds $1,000 D. When an individual spends more on higher education in the same yearAnswer: D 6. In which of these situations does the Form 1099 MISC report?A. Payments of $600 or more made to a supplier, physician, or healthcare/medical services provider during your business/trade.B. Non-employee compensation payment of $600 or higherC. $5 royalty income paymentD. $400 rent paymentAnswer: A7. How many shareholders can there be for a corporation to qualify to be regarded as an S corporation?A. 50B. 25C. 200D. 100Answer: D8. What is the next step if the Internal Revenue Service agency and a taxpayer cannot resolve a dispute without a docket at the Independent Office of Appeals? A. Making a payment demand and sending a noticeB. Sending the case back to the assigned Revenue Agent for additional reviewC. Sending a deficiency noticeD. Referring the case to the Taxpayer Advocate ServiceAnswer: C9. Typically, the basis of an S corporation stockholder gets raised by which of the following?A. Taxable incomeB. Loss items stated separately C. DistributionsD. Non-taxable discharge of indebtednessAnswer: A10. What types of income are typically categorized as "other income" on Form 1040, Schedule C?A. Revenue generated from global salesB. Amounts recovered from previously written-off debtsC. Taxes collected on sales transactionsD. Revenue earned from the exchange of goods or servicesAnswer: B11. Recapture calculations are not needed if the business uses a percentage of Section 179 or listed property that exceeds what percent:A. 25%B. 10%C. 50%D. 45%Answer: C12. When a paycheck is issued to a taxpayer for his work before demise but processed after the date of demise, it is regarded as:A. Income in respect of a decedentB. Deferred incomeC. Excess compensationD. Non-taxable incomeAnswer: A13. To be eligible under Section 501(c)(3), an organization should be organized and operated exclusively for which purpose?A. BusinessB. CharitableC. PersonalD. Political actionAnswer: B14. Which of these do you typically need to include if you have to account for inventories?A. Supplies not associated with the intended item for saleB. Donations of items to charityC. Raw materialsD. IRS interest and penaltiesAnswer: C15. When can the Net Investment Income Tax apply? A. Taxable mutual fund distribution B. Alimony C. Traditional IRA distribution D. Tax-exempt municipal bond interest Answer: A16. Written communications between an enrolled agent and a client may be considered privileged if they pertain to:A. Compiling the tax returns of the clientB. A criminal tax investigationC. Urging the client to take part in a tax shelterD. Advocating for the client during an IRS examinationAnswer: D17. When a corporation provides a shareholder with a below-market loan for federal tax purposes, the corporation is typically regarded to having made a payment to the shareholder. The payment so deemed is regarded as a (n):A. DividendB. A payment of compensationC. GiftD. HonorariumAnswer: A18. What type of authority can taxpayers rely on to demonstrate substantial authority for the tax treatment of an item and avoid the accuracy-related penalty of income tax?A. IRS FormsB. www.irs.govC. Treasury regulationsD. IRS PublicationsAnswer: C19. The standard deduction is raised for people aged 65 and more, and/or which other group of people is among the following?A. Getting unemployment compensationB. Retired from the militaryC. A trust beneficiary D. BlindAnswer: D20. Which of the following is excluded from the calculation to determine whether any social security benefits are taxable?A. Adoption benefits offered by employerB. Meals excluded from gross income under section 119C. Tax-exempt interestD. Earnings from a foreign placeAnswer: B A Pro Tip for EA Students To take the enrolled agent exam, you should review practice questions and enrolled agent course materials to become familiar with the exam conditions and the types of questions within the test. It’s crucial to read each question carefully and understand the end of the question stem before selecting your answer, as you may need to change your answers if necessary. After running through the EA sample questions, you might jump with joy that you got most of the answers right or that your instincts worked. The enrolled agent exam prep should include practicing with questions that contain 100 questions and addressing the part of the question to ensure you know what the question is asking. On the other hand, if you get some incorrect answers, there is no need to worry. This evaluation is just for practice and will help you identify your weak points where you need to focus more. And now comes the pro tip:Don’t rejoice on the surface level! MCQs are tricky, and you should always know the underlying reasons and logic behind an answer. Guesswork and gut feelings will be your weapons when you try to deal with very difficult questions at the end of the exams. Your knowledge and expertise on tax-related matters should rule your mind and push you to tick the right answers with confidence and pass the EA exams with flying colors. Conclusion The enrolled agent exam is a three-part exam consisting of questions related to tax credit, qualified business income, and other aspects of tax law knowledge. The EA exam requires a good understanding of tax laws and the ability to apply them to tax issues affecting both individual and business tax situations. The exam is divided into three parts, and you'll need to pass each part to earn your enrolled agent designation, which involves demonstrating proficiency in various aspects of tax representation.Exam fees and exam results are important aspects to consider when planning your career as an enrolled agent, and knowing everything you need before you start is essential for success.Do you wish to prepare and have full confidence before you sit for the EA exams? Join hands with NorthStar Academy for the best academic assistance. Our premier online training institute can help you crack the Enrolled Agent exam and become a certified tax preparer within a year. Join today and reach out to the expert faculty members via WhatsApp. Make the most of world-class study materials, EA sample questions, practice test papers, matchless mentorship, and more.Even after you clear the EA exam, you can receive excellent career assistance, help with building the best resume, find the best jobs for your skills, and so on. So, enroll now and begin your preparations for a glorious future ahead as an Enrolled Agent! You can enjoy a prestigious job, a good compensation package, and a career growth scope all by starting your professional journey with NorthStar Academy.
