Enrolled Agent Special Enrollment
Examination (EA SEE) Questions And
Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
Question 1
Which IRS form is generally used by an individual taxpayer to file an annual federal
income tax return?
A. Form 1120
B. Form 1041
C. Form 1040
D. Form 1065
Rationale: Form 1040 is the standard individual income tax return used by most
taxpayers in the United States. Form 1120 is used for corporations, Form 1041 is
for estates and trusts, and Form 1065 is for partnerships. Understanding the
correct filing form is foundational for EA SEE candidates because representation
and tax preparation responsibilities frequently begin with identifying the correct
return type.
Question 2
A taxpayer who cannot file a tax return by the due date may request an automatic
extension using:
A. Form 4869
B. Form 7004
C. Form 2555
D. Form 4868
,Rationale: Form 4868 provides an automatic extension of time to file an
individual federal income tax return. However, it does not extend the time to pay
taxes owed. Form 7004 applies to business returns. EA candidates must
understand the distinction between filing extensions and payment obligations
because penalties and interest continue to accrue on unpaid balances.
Question 3
What filing status is generally available to an unmarried taxpayer who maintains a
household for a qualifying child?
A. Married Filing Jointly
B. Single
C. Head of Household
D. Qualifying Widow(er) only
Rationale: Head of Household status provides more favorable tax brackets and a
higher standard deduction than Single status. To qualify, the taxpayer must
generally be unmarried, pay more than half the cost of maintaining a
household, and have a qualifying dependent. This filing status frequently
appears on the EA SEE because it involves multiple eligibility tests.
Question 4
Which of the following taxes is primarily used to fund Social Security benefits?
A. FUTA tax
B. Federal excise tax
C. FICA tax
D. Estate tax
Rationale: The Federal Insurance Contributions Act (FICA) tax funds Social
Security and Medicare programs. Employees and employers each contribute
portions of these payroll taxes. FUTA funds unemployment programs rather than
Social Security. Payroll taxation is a heavily tested EA topic because enrolled
agents often advise employers and self-employed individuals.
Question 5
,A dependent taxpayer with earned income generally computes the standard
deduction as:
A. $1,350 only
B. Earned income plus $10,000
C. Earned income plus a limited additional amount up to the regular standard
deduction
D. Twice the earned income amount
Rationale: Dependents with earned income receive a standard deduction equal
to earned income plus a limited amount, subject to a maximum equal to the
regular standard deduction for their filing status. This rule prevents excessive
deductions while allowing working dependents basic tax relief. EA candidates
must understand dependent deduction limitations thoroughly.
Question 6
Which taxpayer identification number is issued to businesses by the IRS?
A. ITIN
B. PTIN
C. SSN
D. EIN
Rationale: An Employer Identification Number (EIN) identifies business entities
for federal tax purposes. ITINs are issued to certain individuals who are not
eligible for Social Security numbers. PTINs identify paid tax preparers. EA
candidates must understand taxpayer identification systems because these
identifiers appear throughout tax administration and compliance processes.
Question 7
Which of the following is considered taxable income?
A. Qualified municipal bond interest
B. Return of capital distributions
C. Wages received from employment
D. Gifts received from relatives
, Rationale: Wages are generally taxable compensation included in gross income
under Internal Revenue Code Section 61. Municipal bond interest is typically
exempt from federal income tax, gifts are usually excluded from the recipient’s
income, and return of capital distributions reduce basis rather than create
immediate taxable income.
Question 8
The due date for calendar-year partnership returns is generally:
A. April 15
B. June 15
C. March 15
D. January 31
Rationale: Calendar-year partnerships file Form 1065 by March 15. This due date
allows partners to receive Schedule K-1 information before individual filing
deadlines. Due dates are critical on the EA SEE because failure-to-file penalties
can be significant for pass-through entities.
Question 9
What is the primary purpose of depreciation?
A. To increase inventory value
B. To accelerate payroll deductions
C. To allocate the cost of a business asset over its useful life
D. To reduce gross receipts
Rationale: Depreciation spreads the cost of qualifying tangible business assets
across their useful lives, matching expenses with the revenue generated by the
assets. This accounting and tax concept is fundamental for determining
allowable business deductions and taxable income.
Question 10
Which of the following taxpayers may generally contribute to a traditional IRA?
Examination (EA SEE) Questions And
Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
Question 1
Which IRS form is generally used by an individual taxpayer to file an annual federal
income tax return?
A. Form 1120
B. Form 1041
C. Form 1040
D. Form 1065
Rationale: Form 1040 is the standard individual income tax return used by most
taxpayers in the United States. Form 1120 is used for corporations, Form 1041 is
for estates and trusts, and Form 1065 is for partnerships. Understanding the
correct filing form is foundational for EA SEE candidates because representation
and tax preparation responsibilities frequently begin with identifying the correct
return type.
Question 2
A taxpayer who cannot file a tax return by the due date may request an automatic
extension using:
A. Form 4869
B. Form 7004
C. Form 2555
D. Form 4868
,Rationale: Form 4868 provides an automatic extension of time to file an
individual federal income tax return. However, it does not extend the time to pay
taxes owed. Form 7004 applies to business returns. EA candidates must
understand the distinction between filing extensions and payment obligations
because penalties and interest continue to accrue on unpaid balances.
Question 3
What filing status is generally available to an unmarried taxpayer who maintains a
household for a qualifying child?
A. Married Filing Jointly
B. Single
C. Head of Household
D. Qualifying Widow(er) only
Rationale: Head of Household status provides more favorable tax brackets and a
higher standard deduction than Single status. To qualify, the taxpayer must
generally be unmarried, pay more than half the cost of maintaining a
household, and have a qualifying dependent. This filing status frequently
appears on the EA SEE because it involves multiple eligibility tests.
Question 4
Which of the following taxes is primarily used to fund Social Security benefits?
A. FUTA tax
B. Federal excise tax
C. FICA tax
D. Estate tax
Rationale: The Federal Insurance Contributions Act (FICA) tax funds Social
Security and Medicare programs. Employees and employers each contribute
portions of these payroll taxes. FUTA funds unemployment programs rather than
Social Security. Payroll taxation is a heavily tested EA topic because enrolled
agents often advise employers and self-employed individuals.
Question 5
,A dependent taxpayer with earned income generally computes the standard
deduction as:
A. $1,350 only
B. Earned income plus $10,000
C. Earned income plus a limited additional amount up to the regular standard
deduction
D. Twice the earned income amount
Rationale: Dependents with earned income receive a standard deduction equal
to earned income plus a limited amount, subject to a maximum equal to the
regular standard deduction for their filing status. This rule prevents excessive
deductions while allowing working dependents basic tax relief. EA candidates
must understand dependent deduction limitations thoroughly.
Question 6
Which taxpayer identification number is issued to businesses by the IRS?
A. ITIN
B. PTIN
C. SSN
D. EIN
Rationale: An Employer Identification Number (EIN) identifies business entities
for federal tax purposes. ITINs are issued to certain individuals who are not
eligible for Social Security numbers. PTINs identify paid tax preparers. EA
candidates must understand taxpayer identification systems because these
identifiers appear throughout tax administration and compliance processes.
Question 7
Which of the following is considered taxable income?
A. Qualified municipal bond interest
B. Return of capital distributions
C. Wages received from employment
D. Gifts received from relatives
, Rationale: Wages are generally taxable compensation included in gross income
under Internal Revenue Code Section 61. Municipal bond interest is typically
exempt from federal income tax, gifts are usually excluded from the recipient’s
income, and return of capital distributions reduce basis rather than create
immediate taxable income.
Question 8
The due date for calendar-year partnership returns is generally:
A. April 15
B. June 15
C. March 15
D. January 31
Rationale: Calendar-year partnerships file Form 1065 by March 15. This due date
allows partners to receive Schedule K-1 information before individual filing
deadlines. Due dates are critical on the EA SEE because failure-to-file penalties
can be significant for pass-through entities.
Question 9
What is the primary purpose of depreciation?
A. To increase inventory value
B. To accelerate payroll deductions
C. To allocate the cost of a business asset over its useful life
D. To reduce gross receipts
Rationale: Depreciation spreads the cost of qualifying tangible business assets
across their useful lives, matching expenses with the revenue generated by the
assets. This accounting and tax concept is fundamental for determining
allowable business deductions and taxable income.
Question 10
Which of the following taxpayers may generally contribute to a traditional IRA?
