ENROLLED AGENT SPECIAL ENROLLMENT EXAM
PART 2 |ACTUAL QUESTIONS AND VERIFIED
ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
Which form of business entity is not a legal entity separate and apart from its owner?
A. Corporation
B. Partnership
C. Sole proprietorship
D. S corporation
CORRECT ANSWER
C
Question 2
Under which circumstance is an entity required to apply for a new employer identification
number?
A. Proprietorship that incorporates
B. Business name change
C. Electing or revoking S corp status
D. 50% change of interest in partnership within 12 months.
CORRECT ANSWER
A
1
,Question 3
LLC's may be an attractive small business alternative as opposed to an S corp because LLC's
offer the following advantage(s) not available in S corps:
A. Inclusion of entity-level liabilities in tax basis
B. Pass-through taxation
C. Flexibility in types of owners and ownership interest
D. Both inclusion of entity-level liabilities in tax basis and flexibility in types of owners and
ownership interests.
CORRECT ANSWER
D
Question 4
A domestic LLC with at least two members that does not file Form 8832, Entity
Classification Election, is classified as
A. An entity disregarded as an entity separate from its owners by applying the rules in
Regulations Section 301.7701-3
B. A partnership
C. A corporation
D. A non-entity that requires members to report the income and related expenses on Form
1040
CORRECT ANSWER
B
Question 5
2
, Which of the following statements regarding accounting methods is false?
A. If inventories are necessary, the accrual method is used for sales and purchases
B. A combination (hybrid) method is not an acceptable method of accounting
C. A change from the accrual to the cash method of accounting requires consent from the
IRS
D. Under the cash method of accounting, gross income includes all items of income actually
or constructively received during the year
CORRECT ANSWER
B
Question 6
You can compute your taxable income under which of the following accounting methods?
A. Hybrid method
B. Accrual method
C. Special method for certain items
D. All of the answers are correct
CORRECT ANSWER
D
Question 7
Which of the following accounting changes do not require the filing of Form 3115 to
request a change in accounting method?
A. Correction of a math error
3
PART 2 |ACTUAL QUESTIONS AND VERIFIED
ANSWERS|BRAND NEW 2026-2027
UPDATE|GRADED A+
Question 1
Which form of business entity is not a legal entity separate and apart from its owner?
A. Corporation
B. Partnership
C. Sole proprietorship
D. S corporation
CORRECT ANSWER
C
Question 2
Under which circumstance is an entity required to apply for a new employer identification
number?
A. Proprietorship that incorporates
B. Business name change
C. Electing or revoking S corp status
D. 50% change of interest in partnership within 12 months.
CORRECT ANSWER
A
1
,Question 3
LLC's may be an attractive small business alternative as opposed to an S corp because LLC's
offer the following advantage(s) not available in S corps:
A. Inclusion of entity-level liabilities in tax basis
B. Pass-through taxation
C. Flexibility in types of owners and ownership interest
D. Both inclusion of entity-level liabilities in tax basis and flexibility in types of owners and
ownership interests.
CORRECT ANSWER
D
Question 4
A domestic LLC with at least two members that does not file Form 8832, Entity
Classification Election, is classified as
A. An entity disregarded as an entity separate from its owners by applying the rules in
Regulations Section 301.7701-3
B. A partnership
C. A corporation
D. A non-entity that requires members to report the income and related expenses on Form
1040
CORRECT ANSWER
B
Question 5
2
, Which of the following statements regarding accounting methods is false?
A. If inventories are necessary, the accrual method is used for sales and purchases
B. A combination (hybrid) method is not an acceptable method of accounting
C. A change from the accrual to the cash method of accounting requires consent from the
IRS
D. Under the cash method of accounting, gross income includes all items of income actually
or constructively received during the year
CORRECT ANSWER
B
Question 6
You can compute your taxable income under which of the following accounting methods?
A. Hybrid method
B. Accrual method
C. Special method for certain items
D. All of the answers are correct
CORRECT ANSWER
D
Question 7
Which of the following accounting changes do not require the filing of Form 3115 to
request a change in accounting method?
A. Correction of a math error
3
