# EA Exam Part 2 — Businesses Enrolled Agent Part 2 (Businesses) study plan. Free IRS publications are the corpus — Pub 334, 15, 946, 541, 542. Adaptive flashcards, quizzes, and weekly schedule. Canonical URL: https://exclam.ai/ea/part-2/ [EA](https://exclam.ai/ea/index.md)›Part 2, Businesses SEE Part 2 · Updated August 2026 SEE Part 2 covers business taxation — entity choice, partnership and corporate returns, employment taxes, depreciation, and specialized returns. 100 multiple-choice questions across three domains. Most candidates rate Part 2 as the hardest of the three. Typical prep ~60 hours Typical weeks ~8 weeks Domains 3 Pass rate ~55–65% [Start EA today, first week free](https://exclam.ai/pricing/index.md) [See duration plans](https://exclam.ai/ea/part-2/index.md#plans) ## Exam format 100 multiple-choice questions across three domains. 3.5 hours testing time. Delivered by PSI Services, which replaced Prometric on March 1, 2026. The domestic testing window runs through February 28, 2027. International scheduling and testing remain delayed, with no announced restart date. Business Tax Preparation alone is ~37 questions — over a third of the exam. Depreciation (MACRS, §179, bonus depreciation) is a consistent trouble spot. Entity choice analysis (sole prop vs partnership vs S corp vs C corp) is heavily tested. Most candidates prep 6–10 weeks at 8–12 hours per week. Exam fee is $317 per part. PSI Services replaced Prometric on March 1, 2026 and the current testing window runs through February 28, 2027. Always verify current details at [irs.gov/enrolled-agents](https://www.irs.gov/tax-professionals/enrolled-agents) before scheduling. ## Part 2 domains The 3 domains tested on SEE Part 2, paraphrased from the public IRS content outline. Approximate question counts are published by the IRS and may shift between testing cycles. ### Business Entities and Considerations ~30 questions Entity selection, formation, and operation: sole proprietorships, partnerships, C corps, S corps, LLCs, and trusts. Choice-of-entity analysis is heavily tested. Sole proprietorship (Schedule C) tax treatment Partnership (Form 1065) and K-1 flow-through rules C Corporation (Form 1120) with double taxation and accumulated earnings S Corporation (Form 1120-S) eligibility, reasonable compensation, and basis rules LLC classification (check-the-box elections) Estate and trust entities (Form 1041) Tax-exempt organizations (Form 990 series) Choice-of-entity comparison: liability, tax, and administrative trade-offs Key IRS publications [Pub 334](https://www.irs.gov/pub/irs-pdf/p334.pdf) [Pub 541](https://www.irs.gov/pub/irs-pdf/p541.pdf) [Pub 542](https://www.irs.gov/pub/irs-pdf/p542.pdf) ### Business Tax Preparation ~37 questions The operational mechanics of business tax returns: income recognition, expense deduction, depreciation, and employment taxes. Largest single domain on Part 2. Business income recognition (cash vs accrual, long-term contracts) Deductible business expenses and §263A capitalization rules Depreciation (MACRS), §179 expensing, and bonus depreciation Vehicle, travel, meals, and home office deduction rules Inventory methods (LIFO, FIFO, specific identification) and §471 Employment tax (941, 940, W-2, W-3) and payroll tax deposits Independent contractor classification (Form 1099-NEC, §530 safe harbor) Key IRS publications [Pub 15](https://www.irs.gov/pub/irs-pdf/p15.pdf) [Pub 946](https://www.irs.gov/pub/irs-pdf/p946.pdf) [Pub 463](https://www.irs.gov/pub/irs-pdf/p463.pdf) [Pub 538](https://www.irs.gov/pub/irs-pdf/p538.pdf) ### Specialized Returns and Taxpayers ~18 questions Farm returns, exempt organizations, retirement plans, trust returns, and niche business filings. Farm income and expenses (Schedule F, Form 943) Retirement plans for small business (SEP, SIMPLE, solo 401(k)) Trust and estate income taxation (Form 1041) Tax-exempt organizations and Form 990/990-EZ/990-N International business considerations (foreign tax credit, Form 5471) Key IRS publications [Pub 225](https://www.irs.gov/pub/irs-pdf/p225.pdf) [Pub 560](https://www.irs.gov/pub/irs-pdf/p560.pdf) exclam.ai does not reproduce IRS exam questions. Domain names and question shares above are paraphrased from the publicly published SEE content outline at irs.gov. ## Free IRS corpus for Part 2 Every IRS publication below is a work of the U.S. federal government, public domain under 17 U.S.C. §105. Download them and upload to exclam.ai to build a study plan from the source material itself. [Pub 334 Tax Guide for Small Business Sole proprietorship tax treatment, deductible business expenses, and Schedule C mechanics.](https://www.irs.gov/pub/irs-pdf/p334.pdf) [Pub 541 Partnerships Partnership formation, operation, distributions, liquidations, and basis tracking.](https://www.irs.gov/pub/irs-pdf/p541.pdf) [Pub 542 Corporations C corp taxation, dividends-received deduction, NOLs, and reorganizations.](https://www.irs.gov/pub/irs-pdf/p542.pdf) [Pub 15 (Circular E) Employer's Tax Guide Employment tax withholding, FICA/FUTA, and Form 941/940 preparation.](https://www.irs.gov/pub/irs-pdf/p15.pdf) [Pub 946 How To Depreciate Property MACRS, §179, and bonus depreciation mechanics. Heavily tested.](https://www.irs.gov/pub/irs-pdf/p946.pdf) [Pub 463 Travel, Gift, and Car Expenses Deductible travel, meals (with current percentage limit), and vehicle expense methods.](https://www.irs.gov/pub/irs-pdf/p463.pdf) [Pub 538 Accounting Periods and Methods Cash vs accrual method, accounting period elections, and changes in accounting method.](https://www.irs.gov/pub/irs-pdf/p538.pdf) [Pub 225 Farmer's Tax Guide Farm income recognition, farm expenses, and special rules (income averaging, crop insurance).](https://www.irs.gov/pub/irs-pdf/p225.pdf) [Pub 560 Retirement Plans for Small Business SEP, SIMPLE, and qualified plan rules for small employers.](https://www.irs.gov/pub/irs-pdf/p560.pdf) ## How exclam.ai helps with Part 2 ### Upload the free IRS PDFs The publications above are all public domain. Upload them to exclam.ai and skip the commercial prep cost entirely — or upload your Gleim/Surgent notes alongside them for a hybrid approach. ### Generate flashcards & practice Adaptive flashcards and SEE-format multiple-choice practice questions, mapped to the 3 Part 2 domains. Edit any card. Add your own. ### Weekly adaptive plan Coverage phase across all 3 domains, review phase for weak topics, mocks in the final 1-2 weeks. Rebalances when you fall behind. ## EA study plan One adaptive EA study plan covering all three SEE parts, with a built-in timeline toggle — pick a 4-, 6-, 10-, 16-, or 24-week window and the schedule recomputes for your testing window. [Open the EA study plan](https://exclam.ai/ea/index.md) ## Commercial EA prep vendors exclam.ai works alongside any of these vendors, or with free IRS publications alone. Upload your session notes from any commercial prep program and exclam.ai builds the weekly plan and flashcard layer. Gleim EA Review Premium tier ~$598. Extensive partnership and corporate question coverage. Surgent EA Review Ultimate Pass ~$999. Adaptive engine shortens study time for those with business tax backgrounds. Fast Forward Academy Smart Bundle ~$539. Well-regarded video lectures on entity taxation. Direct IRS publications Free. Pub 334 + Pub 15 + Pub 541 + Pub 542 + Pub 946 covers most of Part 2. ## Part 2 questions Why is Part 2 considered the hardest? Breadth. Part 2 spans sole proprietorships, partnerships, C corps, S corps, LLCs, trusts, employment tax, and specialized returns — each with its own rules, forms, and basis concepts. Most candidates have not worked across all entity types professionally. How much does depreciation appear on Part 2? A lot. MACRS, §179, bonus depreciation, listed property limits, and Section 1250/1245 recapture all recur. Pub 946 is essentially required reading. Should I take Part 1 or Part 2 first? Most candidates take Part 1 first because individual tax knowledge carries into Part 2 (pass-through K-1 items, Schedule C). Some tax professionals with strong business backgrounds reverse the order. Part 3 is almost always last. Do I need to know bookkeeping to pass Part 2? Not accounting-grade bookkeeping, but you need comfort with financial statement concepts (balance sheet, income statement), accounting methods (cash vs accrual), and inventory flow. Pub 538 covers the accounting method rules tested.