Enrolled Agent Licensure Exam Practice

Enrolled Agent Licensure Exam Practice Test Questions And Correct Answers (Verified Answers) Plus Rationales 2026 Q&A | Instant Download Pdf

Covers: Individuals, Businesses, Representation, Practices, and Procedures

• What is the standard deduction for a single filer under 65 for tax year

2024?

• $12,950
• $14,600
• $13,850
• $15,000

Rationale: The IRS increased the 2024 standard deduction to $14,600

for single filers to adjust for inflation.

• Which of the following income types is taxable?

a) Child support received 1 / 4

b) Life insurance proceeds due to death

c) Alimony received (for divorces finalized before 2019)

d) Gifts received from relatives

Rationale: Alimony from divorces before 2019 is taxable to the

recipient. Child support and gifts are non-taxable.

3. The due date for individual income tax returns (Form 1040) is:

a) March 15

b) April 15

c) May 15

d) June 15

Rationale: April 15 is the standard due date unless it falls on a

weekend or holiday.

• Which of the following is an above-the-line deduction?

a) Student loan interest

b) Mortgage interest

c) Charitable contributions

d) Medical expenses

Rationale: Above-the-line deductions include student loan interest,

moving expenses (military), and HSA contributions.

• / 4

• What IRS form is used to request an automatic extension for filing an

individual tax return?

a) Form 4868 for corporations

b) Form 4868 for individuals

c) Form 7004

d) Form 1040-ES

Rationale: Individuals file Form 4868 to obtain a six-month extension

for filing Form 1040.

• What is the penalty for failing to file a tax return on time?
• 0.25% per month
• 5% per month of unpaid tax
• 1% per month
• 10% total

Rationale: The failure-to-file penalty is 5% of the unpaid taxes per

month, up to 25% maximum.

• Which entity must file Form 1120-S?

a) C Corporation

b) S Corporation

c) Partnership

d) Sole Proprietorship 3 / 4

Rationale: S Corporations report income and expenses on Form 1120-

S, with flow-through to shareholders via Schedule K-1.

• A taxpayer receives a CP2000 notice. What does it usually indicate?

a) Discrepancy between reported income and IRS records

b) Audit appointment

c) Collection notice

d) Wage garnishment warning

Rationale: CP2000 is a proposed adjustment notice for mismatched

information between the return and IRS data.

• Which IRS form is used to report partnerships’ income?

a) Form 1040

b) Form 1120

c) Form 1065

d) Form 940

Rationale: Partnerships report their income and expenses on Form

1065, not directly taxed at entity level.

10. The statute of limitations for claiming a refund is generally:

• 2 years
• 3 years
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