Enrolled Agent (EA) Practice Exam
Questions (1-100).
1. What is the primary role of an Enrolled Agent (EA)?
A. To represent taxpayers only in state tax matters
B. To represent taxpayers before the Internal Revenue Service (IRS) in tax matters
C. To prepare only corporate financial statements
D. To audit public companies
Correct Answer: B. To represent taxpayers before the Internal Revenue Service (IRS) in tax
matters
Rationale: An Enrolled Agent is federally authorized by the IRS to represent taxpayers in audits,
collections, appeals, and other federal tax matters.
2. Which federal agency administers the Enrolled Agent credential?
A. U.S. Department of Labor
B. Internal Revenue Service (IRS)
C. Social Security Administration
D. Securities and Exchange Commission (SEC)
Correct Answer: B. Internal Revenue Service (IRS)
Rationale: The IRS grants the Enrolled Agent credential to individuals who meet competency
and suitability requirements.
3. Which IRS publication governs the ethical standards for Enrolled Agents?
A. Publication 17
B. Circular 230
C. Publication 334
D. Publication 535
Correct Answer: B. Circular 230
,Rationale: Treasury Department Circular 230 establishes the rules governing practice before the
IRS.
4. Which filing status is generally available to an unmarried taxpayer who pays
more than half the cost of maintaining a home for a qualifying person?
A. Married Filing Jointly
B. Married Filing Separately
C. Head of Household
D. Qualifying Surviving Spouse
Correct Answer: C. Head of Household
Rationale: A taxpayer meeting the applicable requirements may qualify for the more favorable
Head of Household filing status.
5. What is the due date for most individual federal income tax returns, unless
extended or adjusted because of weekends or holidays?
A. January 31
B. March 15
C. April 15
D. December 31
Correct Answer: C. April 15
Rationale: Individual Form 1040 returns are generally due on April 15 unless the date changes
due to weekends, holidays, or IRS announcements.
6. Which IRS form is generally used by individuals to file a federal income tax
return?
A. Form W-2
B. Form 1040
C. Form 941
D. Form 1120
Correct Answer: B. Form 1040
Rationale: Form 1040 is the standard federal income tax return for individual taxpayers.
,7. Which document reports wages paid and federal income tax withheld from an
employee?
A. Form 1099-NEC
B. Form W-2
C. Schedule C
D. Form 1065
Correct Answer: B. Form W-2
Rationale: Employers provide Form W-2 to employees showing wages and tax withholding.
8. Self-employed individuals generally report business income and expenses on:
A. Schedule A
B. Schedule C
C. Schedule D
D. Schedule E
Correct Answer: B. Schedule C
Rationale: Sole proprietors typically report business income and deductible business expenses
on Schedule C.
9. Which of the following is generally considered taxable income?
A. Qualified tax-exempt municipal bond interest
B. Wages earned from employment
C. Certain qualified gifts received from individuals
D. Certain qualifying inheritances
Correct Answer: B. Wages earned from employment
Rationale: Wages are generally included in gross income unless specifically excluded by law.
10. Which of the following is generally NOT considered earned income?
, A. Salary
B. Wages
C. Interest income
D. Self-employment income
Correct Answer: C. Interest income
Rationale: Interest income is investment income rather than earned income.
11. What is the purpose of a tax deduction?
A. To increase taxable income
B. To reduce taxable income
C. To increase tax penalties
D. To eliminate filing requirements
Correct Answer: B. To reduce taxable income
Rationale: Deductions reduce the amount of income subject to tax.
12. What is the primary benefit of a tax credit?
A. It increases adjusted gross income.
B. It directly reduces the amount of tax owed, subject to the credit's rules.
C. It increases withholding.
D. It delays filing requirements.
Correct Answer: B. It directly reduces the amount of tax owed, subject to the credit's rules.
Rationale: Unlike deductions, tax credits directly reduce tax liability and may be refundable or
nonrefundable depending on the applicable law.
13. Which IRS form is commonly used to request an automatic extension of time
to file an individual income tax return?
A. Form 4868
B. Form W-4
C. Form 1099-INT
D. Form 2553
Questions (1-100).
1. What is the primary role of an Enrolled Agent (EA)?
A. To represent taxpayers only in state tax matters
B. To represent taxpayers before the Internal Revenue Service (IRS) in tax matters
C. To prepare only corporate financial statements
D. To audit public companies
Correct Answer: B. To represent taxpayers before the Internal Revenue Service (IRS) in tax
matters
Rationale: An Enrolled Agent is federally authorized by the IRS to represent taxpayers in audits,
collections, appeals, and other federal tax matters.
2. Which federal agency administers the Enrolled Agent credential?
A. U.S. Department of Labor
B. Internal Revenue Service (IRS)
C. Social Security Administration
D. Securities and Exchange Commission (SEC)
Correct Answer: B. Internal Revenue Service (IRS)
Rationale: The IRS grants the Enrolled Agent credential to individuals who meet competency
and suitability requirements.
3. Which IRS publication governs the ethical standards for Enrolled Agents?
A. Publication 17
B. Circular 230
C. Publication 334
D. Publication 535
Correct Answer: B. Circular 230
,Rationale: Treasury Department Circular 230 establishes the rules governing practice before the
IRS.
4. Which filing status is generally available to an unmarried taxpayer who pays
more than half the cost of maintaining a home for a qualifying person?
A. Married Filing Jointly
B. Married Filing Separately
C. Head of Household
D. Qualifying Surviving Spouse
Correct Answer: C. Head of Household
Rationale: A taxpayer meeting the applicable requirements may qualify for the more favorable
Head of Household filing status.
5. What is the due date for most individual federal income tax returns, unless
extended or adjusted because of weekends or holidays?
A. January 31
B. March 15
C. April 15
D. December 31
Correct Answer: C. April 15
Rationale: Individual Form 1040 returns are generally due on April 15 unless the date changes
due to weekends, holidays, or IRS announcements.
6. Which IRS form is generally used by individuals to file a federal income tax
return?
A. Form W-2
B. Form 1040
C. Form 941
D. Form 1120
Correct Answer: B. Form 1040
Rationale: Form 1040 is the standard federal income tax return for individual taxpayers.
,7. Which document reports wages paid and federal income tax withheld from an
employee?
A. Form 1099-NEC
B. Form W-2
C. Schedule C
D. Form 1065
Correct Answer: B. Form W-2
Rationale: Employers provide Form W-2 to employees showing wages and tax withholding.
8. Self-employed individuals generally report business income and expenses on:
A. Schedule A
B. Schedule C
C. Schedule D
D. Schedule E
Correct Answer: B. Schedule C
Rationale: Sole proprietors typically report business income and deductible business expenses
on Schedule C.
9. Which of the following is generally considered taxable income?
A. Qualified tax-exempt municipal bond interest
B. Wages earned from employment
C. Certain qualified gifts received from individuals
D. Certain qualifying inheritances
Correct Answer: B. Wages earned from employment
Rationale: Wages are generally included in gross income unless specifically excluded by law.
10. Which of the following is generally NOT considered earned income?
, A. Salary
B. Wages
C. Interest income
D. Self-employment income
Correct Answer: C. Interest income
Rationale: Interest income is investment income rather than earned income.
11. What is the purpose of a tax deduction?
A. To increase taxable income
B. To reduce taxable income
C. To increase tax penalties
D. To eliminate filing requirements
Correct Answer: B. To reduce taxable income
Rationale: Deductions reduce the amount of income subject to tax.
12. What is the primary benefit of a tax credit?
A. It increases adjusted gross income.
B. It directly reduces the amount of tax owed, subject to the credit's rules.
C. It increases withholding.
D. It delays filing requirements.
Correct Answer: B. It directly reduces the amount of tax owed, subject to the credit's rules.
Rationale: Unlike deductions, tax credits directly reduce tax liability and may be refundable or
nonrefundable depending on the applicable law.
13. Which IRS form is commonly used to request an automatic extension of time
to file an individual income tax return?
A. Form 4868
B. Form W-4
C. Form 1099-INT
D. Form 2553
