EA Part 2 Syllabus 2026: Business Complete Guide

Last Updated On -26 Sep 2026

By Sagnika Sinha

EA Part 2 Syllabus 2026: Business Complete Guide

If Part 1 introduces you to taxation of individuals, EA Part 2 - Businesses takes you into the world of business taxation. You will study partnerships, corporations, S corporations, sole proprietorships, LLCs, trusts, estates, tax-exempt organisations, retirement plans and several specialised taxpayers.

That sounds like a lot - and it is. However, EA Part 2 becomes much easier once you stop studying every rule separately and begin comparing how different entities treat the same transaction. When performing the Enrolled Agent registration process, candidates learn about the PTIN to prometric change.

For example, how does contributing property affect a partnership compared with a corporation? How does basis change after a distribution? Who pays tax? Which form gets filed? Those comparisons are at the heart of Part 2.

For the July 1, 2026 - February 28, 2027 testing cycle, the exam uses the Internal Revenue Code, regulations, IRS forms, instructions, and publications as amended through December 31, 2025. Unless stated otherwise, exam questions refer to the 2025 calendar year.

EA Part 2 Core Domains & Syllabus

PSI divides Part 2 into three official content areas. Here are the tabular representations of the areas:

Domain	Scored Questions	Approx. Weight
Business Entities and Considerations	30	35%
Business Tax Preparation	37	44%
Specialized Returns and Taxpayers	18	21%
Total Scored Questions	85	100%

The actual examination contains 100 multiple-choice questions. Fifteen are experimental and do not affect your score, but you will not know which ones they are.

Domain 1: Business Entities and Considerations

This domain carries 30 scored questions, so you need a strong understanding of how different businesses are formed, taxed, and closed. Before you start preparing for Part 2, you must be aware of Enrolled Agent exam dates for 2026-27. The official syllabus includes:

Sole proprietorships
Partnerships
Qualified joint ventures
C corporations
S corporations
LLCs
Tax-exempt entities
Entity classification elections
Employer Identification Numbers
Tax years
Information reporting

Partnership taxation is especially important. You should understand contributions of property, partner basis, guaranteed payments, distributions, separately stated items, sale of partnership interests, and partnership termination.

For corporations, study formation rules, dividends, distributions, liquidations, stock redemptions, and Section 351 exchanges. S Corporation questions can test eligibility, elections, separately stated items, distributions, and shareholder basis.

The best approach is comparison. Create one table with columns for:

Sole Proprietorship | Partnership | C Corporation | S Corporation

Then compare filing forms, taxation, distributions, basis, losses, and owner compensation.

Domain 2: Business Tax Preparation

This is the largest Part 2 domain, with 37 scored questions. Expect questions covering business income, deductions, assets, accounting methods, and tax-planning decisions. Major syllabus areas include:

Gross receipts
Cost of goods sold
Business expenses
Depreciation
Section 179
Bonus depreciation
Business bad debts
Employment taxes
Interest expense
Business vehicles
Travel and meals
Qualified Business Income
General business credits
Net operating losses
Basis of business assets
Asset dispositions
Accounting methods
Book-to-tax reconciliations
Related-party transactions
Worker classification

The syllabus also includes financial statement concepts such as income statements, balance sheets, and reconciliation between book income and taxable income. Do not study this section only by reading.

Part 2 frequently requires you to apply a rule to numbers. Work through calculations until you can identify the correct treatment without repeatedly returning to your notes. Indian working professionals must learn about the Enrolled Agent exam fees in India.

Domain 3: Specialized Returns and Taxpayers

This domain contributes 18 scored questions. It covers taxpayers and returns that do not fit neatly into regular partnership or corporate taxation. Important topics include:

Trusts and estates: types of trusts, distributable net income, accounting income, deductions, K-1 items, and filing requirements.

Tax - exempt organisations: tax-exempt status, Forms 1023 and 1024, Form 990 reporting and unrelated business taxable income.

Retirement plans: employer and employee contributions, SEP and SIMPLE plans, prohibited transactions and plan reporting.

Farmers: farm income, depreciation, disaster provisions, farm rentals and estimated tax rules.

Rental property: real estate professional status, passive-loss rules, residential versus commercial rentals and allocation between personal and rental use.

The challenge here is breadth. Build summary sheets instead of trying to memorise every specialised rule at once. If the exams seem like a challenge, students and working professionals must develop insights into Enrolled Agent course fees.

Exam Structure & Logistics

EA Part 2 is a computer-based multiple-choice exam administered by PSI Services. PSI replaced Prometric as the EA Exam administrator effective March 1, 2026. You will learn more about this if you compare it with the Enrolled Agent exam syllabus.

The examination is closed-book. You cannot access books, notes, phones, or reference materials during the exam. PSI provides an on-screen calculator. Personal calculators are not permitted.

Questions & Time

EA Part 2 contains: 100 multiple-choice questions

Below are the divisions of the questions based on their markings.

85 are scored
15 are experimental and unscored

You receive 3.5 hours of exam time. PSI schedules a four-hour appointment to allow for the tutorial, survey, and breaks.

The current exam has two scheduled 10 - minute breaks. The first comes after Questions 1 - 34 and the second after Questions 35 -67. Once you complete a section and move forward, you cannot return to the questions in that earlier section.

That makes time management important. You have around two minutes per question on average.

Scoring & Window

The SEE now uses a scaled score from 200 to 800. The passing score is 500

A 500 score is not the same as getting exactly 62.5% of the questions correct. PSI converts your raw performance into a scaled score. Candidates who pass receive a passing designation, rather than a numerical passing score.

For US domestic candidates, the current testing window is: July 1, 2026 - February 28, 2027

International testing, including for candidates in India, remains temporarily delayed as of September 24, 2026. New international start dates have not yet been announced.

Once international testing resumes, it will be delivered remotely rather than through international physical test centres. Candidates can attempt each exam part up to four times during a testing window.

Recommended Study Strategy

Part 2 rewards understanding more than isolated memorisation. Build your preparation around four habits. Here are some of the significant strategies:

Master Entity Rules

Start by understanding each business entity. Ask the same questions every time:

Who owns it?
Which tax return does it file?
Who pays the tax?
How are profits distributed?
How are losses treated?
What happens when property enters or leaves the business?
How does the business terminate?

Once you can answer those questions for partnerships, C corporations, and S corporations, many Part 2 questions become easier. Furthermore, the Enrolled Agent exam dates highlight the testing windows and how to schedule the same.

Focus on Basis

Basis deserves special attention. You may encounter basis when studying:

Partnership contributions
Partnership distributions
Sale of partnership interests
S corporation shareholder losses
S corporation distributions
Business assets
Property contributions
Stock transactions

The official Part 2 outline specifically includes partner basis, shareholder basis, and basis of business assets. Do not memorise formulas without understanding the order of adjustments.

Create worked examples. Start with beginning basis, add increases, subtract decreases, and determine how much loss or distribution the taxpayer can recognise.

Use IRS Resources

Commercial review courses can simplify your study plan, but official resources remain valuable. The IRS recommends candidates use:

Internal Revenue Code
Code of Federal Regulations
IRS forms
Form instructions
IRS publications
IRS Tax Topics
Official sample SEE questions

For Part 2, spend time looking at forms such as Form 1065, Form 1120, Form 1120 - S, Schedule C, Schedule K - 1, and Form 1041. You do not need to memorise every line. Understand what each return is designed to report.

Practice Time MCQs

Reading creates familiarity. Questions build exam skill. Begin with topic-based MCQs while studying each entity. Then move to mixed questions. Finally, practise under timed conditions.

The IRS publishes official sample Part 2 questions based on tax law through December 31, 2025. Use them to understand the wording and style of the current SEE. It will also enhance your knowledge about why Enrolled Agents are in demand for US Tax outsourcing firms in India.

When you miss a question, do not simply memorise the correct option. That review process is where much of the learning happens.

Wrapping Up!

EA Part 2 can feel broad because it combines business entities, calculations, financial information, and specialised taxpayers. The solution is structure.

Then build strong comparisons between partnerships, corporations, and S corporations. Give extra attention to basis, distributions, depreciation, business deductions, and accounting methods.

If you are a Class 12 commerce student, you do not need to understand every rule immediately. Use Part 2 as an introduction to how business structures and taxation connect.

If you already work in accounting, CA, finance or US taxation, connect the syllabus with actual returns and business transactions you have seen. Most importantly, practise applying the rules.

EA Part 2 does not simply ask whether you remember a tax concept. It tests whether you can identify the correct tax treatment when a business transaction changes the facts.

Frequently Asked Questions

Is partnership taxation important for EA Part 2?

Yes. Partnership income, contributions, distributions, partner basis, guaranteed payments, and disposition of partnership interests are specifically included in the official syllabus.

Which EA Part 2 domain carries the most questions?

Business Tax Preparation is the largest domain with 37 of the 85 scored questions.

Does EA Part 2 include depreciation?

Yes. The syllabus includes depreciation, amortisation, Section 179, bonus depreciation, and depreciation recapture.

Is EA Part 2 open book?

No. The SEE is closed book. Books, notes, and personal electronic devices cannot be accessed during the exam or breaks.

What is the best way to prepare for EA Part 2?

Start with entity comparisons, master basis and distribution rules, practise calculations, review IRS forms, and complete timed MCQs. The IRS also provides official Part 2 sample questions for the current testing cycle.

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