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Cheat sheet

Enrolled Agent EA Cheat Sheet

Practice this exam

Part 1 Individuals

  • 33% of exam
  • Filing Dependents Income Deductions Credits

Part 2 Businesses

  • 33% of exam
  • Entities Payroll Accounting Depreciation K-1

Part 3 Representation

  • 34% of exam
  • Practice Circular 230 POA Research Penalties

Quick Facts

  • Exam IRS SEE
  • Parts 3
  • Questions 100 per part
  • Scored 85 per part
  • Time 3.5 hours
  • Pass 500 scaled (200–800)
  • Vendor PSI
  • Law year 2025
  • Tax law tested TY2025; cutoff Dec-31-2025

Child Tests IN

  • Relationship, age, residency, support, joint
  • QC five tests QR four tests Support matters

Extension vs Payment IN

Extension

  • Extends filing
  • Form 4868
  • October deadline

Payment

  • Still April
  • Interest accrues
  • Penalty possible
  • File later, pay now

Individual Form Picker IN

  • Individual return → Form 1040
  • Senior return → 1040-SR
  • Need filing extension → Form 4868
  • Correct filed return → 1040-X
  • Interest/dividends → Schedule B
  • Rentals/royalties → Schedule E

Filing Basics IN

  • Form 1040 Individual return
  • 1040-SR Senior return
  • April 15 Standard due date
  • Form 4868 File extension
  • October 15 Extended filing date
  • 1040-X Amended return
  • PTIN Preparer ID
  • Due diligence Verify reasonableness

QC vs QR IN

Qualifying child

  • Age test
  • Residency test
  • Relationship test

Qualifying relative

  • Gross income test
  • Support test
  • No age test
  • Child tests vs relative

Status + Dependents IN

  • Single Unmarried filer
  • MFJ Joint married return
  • MFS Separate married return
  • HOH Qualifying home support
  • QSS Surviving spouse status
  • Qualifying child Five tests
  • Qualifying relative Four tests
  • Support test Over half support

Individual Income IN

  • W-2 Employee wages
  • 1099-NEC Nonemployee pay
  • Schedule B Interest/dividends
  • Schedule E Rentals/royalties
  • Alimony post-2018 Not taxable
  • Gambling winnings Taxable income
  • Cancellation debt Possible income
  • K-1 Pass-through share

Deductions + Credits IN

  • Standard deduction No Schedule A
  • Itemized Schedule A
  • Medical floor 7.5% AGI
  • SALT cap $40,000; $20,000 MFS
  • QBI Section 199A
  • CTC Child tax credit
  • EITC Earned income credit
  • AOC Education credit

Property + Retirement IN

  • Basis Tax investment
  • Short-term gain One year or less
  • Long-term gain Over one year
  • Capital loss $3,000 limit
  • Section 121 Home-sale exclusion
  • Wash sale Loss disallowed
  • Traditional IRA Pre-tax possible
  • Roth IRA After-tax contributions

Tax Year 2025 Figures IN

  • Single/MFS standard deduction $15,750
  • MFJ/QSS standard deduction $31,500
  • HOH standard deduction $23,625
  • Child tax credit $2,200; ACTC up to $1,700
  • SALT phase-down 30% above $500K MAGI; MFS $250K
  • SALT floor $10,000; $5,000 MFS
  • Section 179 $2.5M maximum; $4M phaseout start
  • Bonus depreciation 100%: acquisition + placement after Jan-19-2025
  • 2025 estate/gift basic exclusion $13,990,000
  • Annual gift exclusion $19,000 per donee

Business Forms BU

  • C, 1065, 1120, 1120-S
  • Sole prop Partnership C corp S corp

Employee vs Contractor BU

Employee

  • W-2
  • Employer control
  • Payroll taxes

Contractor

  • 1099-NEC
  • Independent work
  • SE tax
  • Control drives status

Entity Return Picker BU

  • Sole proprietor → Schedule C
  • Partnership → Form 1065
  • C corporation → Form 1120
  • S corporation → Form 1120-S
  • Trust or estate → Form 1041
  • Exempt organization → Form 990

Entity Types BU

  • Schedule C Sole proprietor
  • Partnership Form 1065
  • C corp Form 1120
  • S corp Form 1120-S
  • Trust/estate Form 1041
  • Exempt org Form 990
  • LLC State-law entity
  • Form 8832 Entity election

Cash vs Accrual BU

Cash

  • When received
  • When paid
  • Simpler timing

Accrual

  • When earned
  • When incurred
  • Matching concept
  • Cash flow vs rights

Accounting + Payroll BU

  • Cash method Income when received
  • Accrual Earned/incurred timing
  • Inventory COGS rules
  • Constructive receipt Available income
  • Form 941 Payroll taxes
  • FUTA Federal unemployment
  • TFRP Trust fund penalty
  • EIN Business tax ID

Deductions + Assets BU

  • Ordinary Common in business
  • Necessary Helpful and appropriate
  • Meals Usually 50%
  • Home office Regular exclusive use
  • MACRS Tax depreciation
  • Section 179 Expense election
  • Bonus depreciation Accelerated recovery
  • Listed property Strict substantiation

Pass-Throughs BU

  • Partner basis Outside basis
  • Inside basis Entity asset basis
  • Guaranteed payment Partner service pay
  • At-risk Loss limitation
  • Passive activity Participation limit
  • S election Form 2553
  • Reasonable comp S corp wages
  • Built-in gains S corp tax

SEE Parts RE

  • Individuals, businesses, representation
  • Part 1 Part 2 Part 3

2848 vs 8821 RE

2848

  • Represent taxpayer
  • Acts authorized
  • Practitioner signs

8821

  • Receive data
  • No representation
  • Information only
  • Act vs view

Representation Picker RE

  • Represent taxpayer → Form 2848
  • Receive information → Form 8821
  • Third-party designee → Checkbox authority
  • Apply as EA → Form 23
  • Renew EA status → Form 8554
  • Client omission → Advise client promptly

Representation Rules RE

  • EA Unlimited IRS practice
  • Circular 230 Practice rules
  • OPR Practitioner discipline
  • Form 2848 Power of attorney
  • Form 8821 Info authorization
  • CAF Authorization file
  • Form 23 Enrollment application
  • Form 8554 Enrollment renewal

Authority RE

  • IRC, regs, rulings, cases
  • Statute first Regs interpret Cases apply

EA vs Unenrolled RE

EA

  • Unlimited IRS rights
  • Circular 230
  • All taxpayers

Unenrolled

  • AFSP: limited rights
  • Only returns they prepared
  • PTIN only: no rights
  • Unlimited vs limited

Penalty Picker RE

  • Late return → Failure-to-file
  • Late payment → Failure-to-pay
  • Good history → FTA
  • Facts justify → Reasonable cause
  • Payroll trust funds → TFRP
  • Joint-return relief → Form 8857

Research + Penalties RE

  • IRC Highest tax statute
  • Regulations Treasury interpretation
  • Rev. Rul. IRS position
  • Tax Court Prepayment forum
  • FTA First-time abatement
  • Reasonable cause Penalty defense
  • Innocent spouse Form 8857
  • FOIA Records request

Common Traps

Extension trap

  • Extends filing only ≠ Tax still due

Post-2018 alimony

  • Recipient excludes ≠ Payer cannot deduct

SALT cap

  • Itemized only ≠ $40,000 cap ($20,000 MFS) for 2025

2848 vs 8821

  • 2848 represents ≠ 8821 receives data

State vs tax entity

  • LLC is state-law ≠ Tax election controls

Pass vs score

  • Pass hides score ≠ Fail shows scaled score

Last Minute

  • 1. Each part has 100 questions
  • 2. 85 scored, 15 experimental
  • 3. Pass = 500 scaled (200–800)
  • 4. Law year = 2025
  • 5. Extension files, not pays
  • 6. QC has five tests
  • 7. LLC tax status elected
  • 8. S corp needs wages
  • 9. 2848 acts; 8821 views
  • 10. Circular 230 governs practice