Section 1: Preliminary Work and Tax Payer Data (16 items) – 15%

1 Preliminary work to prepare tax returns

  1. Use of prior years’ returns for comparison, accuracy, and carryovers for current year’s return
  2. Taxpayer biographical information (e.g., date of birth, marital status, dependents)
  3. Residency status and/or citizenship (e.g., citizen, visas, green cards, resident alien or nonresident alien)
  4. Taxpayer filing status (e.g., single, MFJ, MFS, QW, HOH)
  5. Sources of all taxable and non-taxable income (e.g., interest, wages, business, sales of property, dividends, rental income, flow-through entities, alimony received)
  6. Sources of applicable adjustments to gross income (e.g., retirement plans, HSAs, alimony paid, health insurance, moving expenses, self employment tax)
  7. Sources of applicable deductions (e.g., itemized, standard)
  8. Sources of applicable credits (e.g., education, foreign tax, retirement, energy, dependent care)
  9. Sources of tax payments and refundable credits (e.g., withholding, estimated payments, earned income tax credit)
  10. Previous IRS correspondence with taxpayer
  11. Additional required returns filed and taxes paid (e.g., employment, gifts, and information returns)
  12. Special filing requirements (e.g., foreign income, presidentially declared disaster areas, Form 1040-NR)
  13. Foreign account and asset reporting (e.g., FBAR, Form 8938)

2 Taxpayer data

  1. Filing requirements for tax returns and extensions (e.g., dates)
  2. Personal exemptions including dependents
  3. Minor children’s unearned income (Kiddie tax)

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Section 2: Income and Assets (34 items) – 25%

1 Income

  1. Taxability of wages, salaries and other earnings (e.g., earned income, statutory employee)
  2. Interest Income (e.g., taxable and non-taxable)
  3. Dividends and other distributions from mutual funds, corporations, and other entities (e.g., qualified dividends)
  4. Rental income and expenses (e.g., vacation homes, not-for-profit rentals, calculation of deprecation)
  5. Gambling income and allowable deductions (e.g., W-2G, documentation)
  6. Tax treatment of forgiveness of debt (e.g., 1099C, foreclosures)
  7. Tax treatment of a U.S. citizen/resident with foreign income (e.g., individual tax treaties, form 2555)
  8. Other income (e.g., scholarships, fellowships, Social Security benefits, barter income, independent contractor income, hobby income, alimony, non-taxable combat pay, unearned income, taxable recoveries)
  9. Constructive receipt of income (e.g., cash vs. accrual)
  10. Constructive dividends (e.g., payments of personal expenses)
  11. Passive income and loss (e.g., loss limitations)
  12. Royalties and related expenses

2 Retirement income

  1. Basis in a traditional IRA (Form 8606)
  2. Comparison of and distributions from traditional and Roth IRAs
  3. Distributions from qualified and non-qualified plans (e.g., pre-tax, after-tax, rollovers, 1099R)
  4. Excess contributions and tax treatment (e.g., penalties)
  5. Prohibited transactions and tax effects
  6. IRA conversions and recharacterizations (Form 8606)
  7. Required minimum distributions and excess accumulations
  8. Loans from IRC section 401(k) plans and other qualified plans
  9. Taxability of Social Security benefits

3 Property, real and personal

  1. Capital gains and losses (e.g., netting effect, short-term, long-term)
  2. Basis of assets (e.g., purchased, gifted or inherited)
  3. Basis of stock after stock splits and/or stock dividends (e.g., research, schedules, brokerage records)
  4. Sale or disposition of property
  5. Sale of a personal residence (e.g., Sec 121 exclusions)
  6. Installment sales (e.g., related parties, original cost, date of acquisition, possible recalculations and recharacterization)
  7. Options (e.g., stock, commodity, ISO, ESPP)
  8. Like-kind exchange
  9. Non-business bad debts (e.g., documentation required)

4 Adjustments to income

  1. Self-employment tax
  2. Retirement contribution limits and deductibility (e.g., earned compensation requirements)
  3. Health savings accounts
  4. Other adjustments to income (e.g., student loan interest, alimony, moving expenses, write in adjustments)

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Section 3: Deductions and Credits (18 items) – 25%

1 Itemized deductions

  1. Medical and dental expenses
  2. Various taxes (e.g., state income, personal property, real estate)
  3. Interest expense (e.g., mortgage interest, investment interest, tracing rules, points)
  4. Charitable contributions (e.g., cash, non-cash, 50% vs. 30%, documentation required)
  5. Nonbusiness casualty and theft losses
  6. Miscellaneous itemized deductions
  7. Employee travel, transportation and entertainment expenses
  8. Other employee expenses (e.g., education, reimbursement, eligibility, home office)
  9. AGI limitations
  10. Allowed itemized deductions for Form 1040-NR

2 Credits

  1. Child and dependent care credit
  2. Child tax credits
  3. Education credits
  4. Foreign tax credit
  5. Earned income tax credit (e.g., paid preparer’s earned income credit checklist, eligibility and disallowance)
  6. Retirement contribution credit
  7. Adoption credits (e.g., carryovers, limitations, special needs)
  8. Other credits (refundable and non-refundable)

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Section 4: Taxation and Advice (21 items) – 20%

1 Taxation

  1. Alternative minimum tax
  2. Credit for prior year minimum tax
  3. Penalties and exceptions on premature distributions from qualified retirement plans and IRAs
  4. Household employees
  5. Underpayment penalties and interest
  6. Conditions for filing a claim for refund (e.g., amended returns)
  7. Self employment tax
  8. Excess social security withholding
  9. Tax provisions for members of the clergy

2 Advising the individual taxpayer

  1. Reporting obligations for individuals
  2. Property sales (e.g., homes, stock, businesses)
  3. Education planning (e.g., lifetime learning credit, IRC section 529 plans)
  4. Estate planning (e.g., gift versus inheritance, trusts, family partnerships, charitable giving, LTC, life insurance)
  5. Retirement planning (e.g., annuities, IRAs, employer plans, early retirement rules, required minimum distribution, beneficiary ownership)
  6. Marriage and divorce (e.g., divorce settlement, common-law, community property)
  7. Items that will affect future returns (e.g., carryovers, net operating loss, Schedule D, Form 8801)
  8. Injured spouse
  9. Innocent spouse
  10. Estimated tax
  11. Adjustments, deductions, and credits for tax planning
  12. Use of capital gain rates versus ordinary income rates (e.g., character of transaction)

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Section 5. Specialized Returns for Individuals (13 items) – 15%

1 Estate tax

  1. Gross estate
  2. Taxable estate: calculations and payments
  3. Unified credit
  4. Jointly-held property
  5. Life insurance and taxable estate
  6. Marital deduction and other marital issues
  7. IRAs and retirement plans
  8. Filing requirements

2 Gift tax

  1. Gift-splitting
  2. Annual per donee exclusion
  3. Unified credit
  4. Effect on estate tax (e.g., Generation skipping transfer tax)
  5. Filing requirements

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See Prometric 2014 Candidate Bulletin

See Prometric’s list of 2014 topics – start here

To download IRS Forms, Instructions and Publications, click here:

Part 2 Businesses (112 items)

Section 1: Businesses (43 items) – 45%

1 Business entities

Types of business entities and their filing requirements:

  1. Sole proprietorships
  2. Partnerships
  3. Corporations
  4. S corporations
  5. Farmers
  6. LLCs
  7. Tax-exempt entities and associations
  8. Elections for type of entity
  9. Employer identification number
  10. Accounting periods (tax year)
  11. Accounting methods

2 Partnerships

  1. Partnership income, expenses, distributions, and flow-through (e.g., self employment income)
  2. Family partnerships
  3. Partner’s dealings with partnership (e.g., exchange of property, guaranteed payments, contribution of property to partnership)
  4. Basis of partner’s interest
  5. Disposition of partner’s interest
  6. Partnership formation (e.g., partnership agreement, general vs. limited partners, capital contributions)
  7. Dissolution of partnership (e.g., sale, death of partner)
  8. Filing requirements and due dates
  9. Services rendered in return for partnership interest
  10. Debt discharge

3 Corporations in general

  1. Filing requirements and due dates
  2. Earnings and profits
  3. Shareholder dividends, distributions, and recognition requirements
  4. Special deductions and credits (e.g., dividends received deductions, charitable deduction)
  5. Liquidations and stock redemptions
  6. Accumulated earnings
  7. Estimated tax payments

4 Forming a corporation

  1. Services rendered to a corporation in return for stock
  2. IRC section 351 exchange
  3. Transfer and/or receipt of money or property in addition to corporate stock
  4. Mortgaged property transferred
  5. Controlled groups
  6. Closely held corporations
  7. Personal service corporations (e.g., 35% rate)

5 S corporations

  1. Requirements to qualify
  2. S corp income, expenses and separately stated items
  3. Treatment of distributions (e.g., reasonable compensation)
  4. Shareholder’s basis (e.g., loan basis, distributions and losses in excess of basis)
  5. Revocation, termination and reinstatement
  6. Debt discharge
  7. Non-cash distributions
  8. Election procedure

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Section 2: Business Financial Information (46 items) – 40%

1 Business income

  1. Gross business income
  2. Cost of goods sold (e.g., inventory practices, expenditures included, uniform capitalization rules)
  3. Net income, net operating losses, and loss limitations including passive activity and at risk limitations
  4. Gain or loss on disposition of depreciable property
  5. Cancellation of business debt

2 Business expenses, deductions and credits

  1. Employees’ pay (e.g., deductibility of compensation, fringe benefits, rules of family employment, statutory employee, necessary and reasonable)
  2. Reporting requirements for contractors and employees (e.g., W-2, W-4, Form 1099)
  3. Business rental deduction
  4. Depreciation, amortization, IRC section 179, and depletion
  5. Business bad debts
  6. Business travel, entertainment, and gift expenses
  7. Interest expense
  8. Insurance expense
  9. Taxes (e.g., deductibility of taxes, assessments, and penalties; proper treatment of sales taxes paid)
  10. Employment taxes
  11. Federal excise tax
  12. Casualties, thefts, and condemnations
  13. IRC section 199 deduction (domestic production activities)
  14. Eligibility and deductibility of general business credits (e.g., disabled access credit, investment credit)
  15. Alternative minimum tax net operating loss deduction
  16. Home office

3 Business assets

  1. Basis of assets
  2. Disposition of depreciable property
  3. Like kind exchange

4 Analysis of financial records

  1. What type of business (e.g., service, retail, manufacturer, farm)
  2. Income statement
  3. Balance sheet (e.g., proofing beginning and ending balances)
  4. Method of accounting (e.g., accrual, cash, hybrid)
  5. Depreciation and amortization
  6. Depreciation recovery (e.g., recapture, Sec 280F)
  7. Pass-through activity (e.g., K-1, separately stated items, non-deductible expenses)
  8. Reconciliation of tax versus books (e.g., M-1, M-2, M-3)
  9. Related party activity
  10. Loans to and from owners

5 Advising the business taxpayer

  1. Filing obligations (e.g., extended returns)
  2. Deposit obligations (e.g., employment tax, excise tax)
  3. Reporting obligations for businesses (e.g., 1099 series, 1031 exchanges, Form 8300)
  4. Record-keeping requirements (e.g., mileage log, accountable plans)
  5. Related party transactions
  6. Selection of business entity (e.g., benefits and detriments)
  7. Comingling (e.g., personal usage of business accounts, separation of business and personal accounts)
  8. Advice on accounting methods and procedures (e.g., explanation of requirements)
  9. Transfer elections in or out of the business (e.g., contributed property, distributions)
  10. Life cycle of the business (e.g., formation, dissolution)
  11. Type of industry (e.g., personal service corporation)
  12. Worker classification

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Section 3: Specialized Returns and Tax Payers (23 items) – 15%

1 Trust and estate income tax

  1. Trust types (e.g., grantor, irrevocable, tax shelters)
  2. Distributable net income and accounting income
  3. Exclusions and deductions
  4. Fraudulent trusts
  5. Income in respect of a decedent
  6. Income (e.g., allocations)
  7. Separately stated items
  8. Filing requirements

2 Exempt organizations

  1. Qualifying for and maintaining tax-exempt status (e.g., 501(c))
  2. Filing requirements (e.g., 1023, 1024, 990 series)
  3. Unrelated business taxable income (UBTI)

3 Retirement plans

  1. Employer and employee contributions
  2. Reporting requirements
  3. Plans for self-employed persons (e.g., SEP and SIMPLE)
  4. Prohibited transactions
  5. Qualified and non-qualified plans
  6. Non-discrimination rules

4 Farmers

  1. Farm inventory
  2. Depreciation for farmers
  3. Various disaster-area provisions
  4. Disposition of farm assets
  5. Farm income (e.g., self-raised livestock, crop insurance proceeds)
  6. Farm tax computation (e.g., Schedule J, Schedule SE, estimated tax)

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To download IRS Forms, Instructions and Publications, click on the following link:
http://www.irs.gov/Forms-&-Pubs

Part 3 Representation, Practices and Procedures (130 Items)

Section 1: Practices and Procedures (29 items)     35%

1 Practice before the IRS

  1. What constitutes practice before the IRS
  2. Categories of individuals who may practice and extent of practice privileges

Requirements for Enrolled Agents

  1. Information to be furnished to the IRS
  2. Omission or error on return, document, or affidavit
  3. Rules for employing or accepting assistance from former IRS employees or disbarred/suspended persons
  4. Rules for restrictions on advertising, solicitation and fee information
  5. Fee rules (e.g., contingent, unconscionable)
  6. Due diligence requirements
  7. Conflict of interest
  8. Rules for refund check negotiation
  9. Standards for written advice, covered opinions, tax return positions and preparing returns
  10. CPE requirements
  11. Tax shelters
  12. Enrollment cycle and renewal
  13. Rules for prompt disposition of matters before the IRS
  14. Rules for returning a client’s records and documents
  15. PTIN requirements
  16. Practioner supervisory responsibilities (Circular 230 Section 10.36)

3 Sanctionable acts

  1. Disreputable conduct that may result in a disciplinary proceeding
  2. Sanctions imposed by OPR
  3. Frivolous submissions (returns and documents)
  4. Fraudulent transactions (e.g., badges of fraud)

4 Rules and penalties

  1. Assessment and appeal procedures for preparer penalties
  2. Types of penalties (e.g., negligence, substantial understatement, overvaluation)
  3. Furnishing a copy of a return to a taxpayer
  4. Signing returns and furnishing identifying numbers
  5. Keeping copies or lists of returns prepared
  6. Employees engaged or employed during a return period (e.g., Section 6060)
  7. Preparer penalty involving the earned income credit

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Section 2: Representation before the IRS (50 items)     30%

 

Power of attorney

  1. Purpose of power of attorney
  2. Signature authority (e.g., extension of assessment period, closing agreement)
  3. Authority granted by taxpayer
  4. Prohibition for negotiating taxpayer refund check (e.g., cannot cash or deposit)
  5. Limitations on signing tax returns on behalf of taxpayer
  6. Proper completion of power of attorney (Form 2848)
  7. Alternate forms of power of attorney (durable)
  8. Rules for client privacy and consent to disclose
  9. Distinctions between power of attorney (Form 2848) and tax information authorization (Form 8821)
  10. Requirements to be met when changing or dropping representatives or withdrawal of representative
  11. Purpose of a Centralized Authorization File number
  12. Conference and practice requirements (Pub 216)

2 Building the taxpayer’s case–Preliminary work

  1. Tax issue(s) identification with supporting details
  2. Potential for criminal aspects
  3. Competence, expertise and time to handle issue
  4. Conflict of interest
  5. Transcripts from IRS

3 Taxpayer financial situation

  1. Taxpayer’s ability to pay the tax (e.g., installment agreements, offer in compromise)
  2. General financial health (e.g., filed for bankruptcy, lawsuits, garnishments, cash flow and assets)
  3. Third-party research (e.g., property assessment for municipal taxes, asset values, stateand local tax information)
  4. Discharge of the tax liability in bankruptcy
  5. IRS Collection Financial Standards

4 Supporting documentation

  1. Financial documents (e.g., cancelled checks or equivalent, bank statements, credit card statements, receipts, brokerage records)
  2. Legal documents (e.g., birth certificate, divorce decrees, lawsuit settlements)
  3. Prior and subsequent tax returns
  4. Other substantive and contemporaneous documentation (e.g., corporate minutes)
  5. Employment reimbursement policies
  6. Business entity supporting documents (e.g., partnership agreement, corporate bylaws)
  7. Expense records (e.g., deductible, allowable, personal, mileage log)

5 Legal authority and references

  1. Internal Revenue Code
  2. Treasury regulations
  3. Revenue rulings
  4. Revenue procedures
  5. IRS notices
  6. Case law
  7. IRS publications
  8. Private letter rulings
  9. Forms and instructions
  10. Internal Revenue Manual
  11. Authoritative versus non-authoritative source material

6 Related issues

  1. Statute of limitations
  2. Post-filing correspondence (e.g., math error notices, under reporting notices)
  3. Deadlines and timeliness requirements
  4. Third-party correspondence (e.g., witness communications, employment records)
  5. Freedom of Information Act requests
  6. Tax avoidance vs. tax evasion
  7. Tax return disclosure statements
  8. Taxpayer Advocate Service (e.g., criteria for requisition assistance)
  9. Identity Theft
  10. Higher levels of representation beyond the scope of EA representation (e.g., tax court,U.S. District Courts and U.S. Claims Court, U.S. Courts of Appeals and U.S. Supreme Court)

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Section 3: Specific Types of Representation (32 items)    30%

Representing a taxpayer in the collection process

  1. Extension of time to pay (e.g., Form 1127-A)
  2. Installment agreements
  3. Offer in compromise (e.g., doubt as to liability, collectability or effective tax administration)
  4. Collection appeals program (e.g., denial of installment agreements, discharge applications)
  5. Collection appeals and due process (e.g., lien and levy)
  6. Adjustments to the taxpayer’s account (e.g., abatements)
  7. Requesting an audit reconsideration (e.g., documents and forms)
  8. Decedent Issues
  9. Collection notice and Notice of Federal Tax Lien
  10. Levy and seizure of taxpayer’s property
  11. Case being reported Currently Not Collectable (e.g., reasons and reactivation)
  12. IRS Collection Summons (e.g., purposes)
  13. Collections statute of limitations
  14. Trust fund recovery penalty

2 Penalties and/or interest abatement

  1. Penalties subject to abatement
  2. Basis for having penalties abated or refunded
  3. Reasonable cause
  4. Basis for having interest abated or refunded
  5. Interest recalculation

3 Representing a taxpayer in audits/examinations

  1. IRS authority to investigate
  2. Verification and substantiation of entries on the return
  3. IRS authority to fix time and place of investigation
  4. Steps in the process (e.g., initial meeting, submission of IRS requested information)
  5. Innocent spouse
  6. Interpretation of revenue agent report (RAR) (e.g., 30-day letter)
  7. Explanations of taxpayer options (e.g., agree or appeal)
  8. Special procedures for partnership audits (e.g., unified audit procedures for TEFRA)

4 Representing a taxpayer before appeals

  1. Right to appeal revenue agent findings
  2. Request for appeals consideration (e.g., preparation, elements contained)
  3. Enrolled Agent appearance at appeals conference
  4. Settlement function of the appeals process
  5. Issuance of 90-day letter

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Section 4: Completion of the Filing Process (19 items)    5%

1 Accuracy

  1. Use of software (e.g., review of results)
  2. Inconsistencies within the source data
  3. Miscalculations
  4. Recognition of duplicate entries

2 Information shared with taxpayer

  1. Record-keeping requirements
  2. Significance of signature (e.g., joint and several liability, penalty of perjury)
  3. Consequences of dishonesty

3 Record maintenance

  1. Length of time to retain returns and records
  2. List of returns prepared (e.g., name, social security number, and type of return)
  3. EITC due diligence requirements

4 Electronic filing

  1. Application process to be an e-file provider (e.g., e-services, EFIN)
  2. E-file mandate
  3. Advertising standards
  4. Definition and responsibilities of an ERO
  5. Levels of infractions
  6. Compliance requirements to continue in program (e.g., timely filing, timely payment, and absence of infractions)
  7. Appeal process
  8. E-file authorization and supporting documentation (e.g., Forms 8879 and 8453)
  9. Rejected returns and resolution (e.g., client notification)

To download IRS Forms, Instructions and Publications, click on the following link:
http://www.irs.gov/Forms-&-Pubs

Enrolled Agent Examination Topics
Click on the part below for more information

Part 1 Individuals (102 items)

Section 1: Preliminary Work and Tax Payer Data (16 items) – 15%

1 Preliminary work to prepare tax returns

  1. Use of prior years’ returns for comparison, accuracy, and carryovers for current year’s return
  2. Taxpayer biographical information (e.g., date of birth, marital status, dependents)
  3. Residency status and/or citizenship (e.g., citizen, visas, green cards, resident alien or nonresident alien)
  4. Taxpayer filing status (e.g., single, MFJ, MFS, QW, HOH)
  5. Sources of all taxable and non-taxable income (e.g., interest, wages, business, sales of property, dividends, rental income, flow-through entities, alimony received)
  6. Sources of applicable adjustments to gross income (e.g., retirement plans, HSAs, alimony paid, health insurance, moving expenses, self employment tax)
  7. Sources of applicable deductions (e.g., itemized, standard)
  8. Sources of applicable credits (e.g., education, foreign tax, retirement, energy, dependent care)
  9. Sources of tax payments and refundable credits (e.g., withholding, estimated payments, earned income tax credit)
  10. Previous IRS correspondence with taxpayer
  11. Additional required returns filed and taxes paid (e.g., employment, gifts, and information returns)
  12. Special filing requirements (e.g., foreign income, presidentially declared disaster areas, Form 1040-NR)
  13. Foreign account and asset reporting (e.g., FBAR, Form 8938)

2 Taxpayer data

  1. Filing requirements for tax returns and extensions (e.g., dates)
  2. Personal exemptions including dependents
  3. Minor children’s unearned income (Kiddie tax)

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Section 2: Income and Assets (34 items) – 25%

1 Income

  1. Taxability of wages, salaries and other earnings (e.g., earned income, statutory employee)
  2. Interest Income (e.g., taxable and non-taxable)
  3. Dividends and other distributions from mutual funds, corporations, and other entities (e.g., qualified dividends)
  4. Rental income and expenses (e.g., vacation homes, not-for-profit rentals, calculation of deprecation)
  5. Gambling income and allowable deductions (e.g., W-2G, documentation)
  6. Tax treatment of forgiveness of debt (e.g., 1099C, foreclosures)
  7. Tax treatment of a U.S. citizen/resident with foreign income (e.g., individual tax treaties, form 2555)
  8. Other income (e.g., scholarships, fellowships, Social Security benefits, barter income, independent contractor income, hobby income, alimony, non-taxable combat pay, unearned income, taxable recoveries)
  9. Constructive receipt of income (e.g., cash vs. accrual)
  10. Constructive dividends (e.g., payments of personal expenses)
  11. Passive income and loss (e.g., loss limitations)
  12. Royalties and related expenses

2 Retirement income

  1. Basis in a traditional IRA (Form 8606)
  2. Comparison of and distributions from traditional and Roth IRAs
  3. Distributions from qualified and non-qualified plans (e.g., pre-tax, after-tax, rollovers, 1099R)
  4. Excess contributions and tax treatment (e.g., penalties)
  5. Prohibited transactions and tax effects
  6. IRA conversions and recharacterizations (Form 8606)
  7. Required minimum distributions and excess accumulations
  8. Loans from IRC section 401(k) plans and other qualified plans
  9. Taxability of Social Security benefits

3 Property, real and personal

  1. Capital gains and losses (e.g., netting effect, short-term, long-term)
  2. Basis of assets (e.g., purchased, gifted or inherited)
  3. Basis of stock after stock splits and/or stock dividends (e.g., research, schedules, brokerage records)
  4. Sale or disposition of property
  5. Sale of a personal residence (e.g., Sec 121 exclusions)
  6. Installment sales (e.g., related parties, original cost, date of acquisition, possible recalculations and recharacterization)
  7. Options (e.g., stock, commodity, ISO, ESPP)
  8. Like-kind exchange
  9. Non-business bad debts (e.g., documentation required)

4 Adjustments to income

  1. Self-employment tax
  2. Retirement contribution limits and deductibility (e.g., earned compensation requirements)
  3. Health savings accounts
  4. Other adjustments to income (e.g., student loan interest, alimony, moving expenses, write in adjustments)

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Section 3: Deductions and Credits (18 items) – 25%

1 Itemized deductions

  1. Medical and dental expenses
  2. Various taxes (e.g., state income, personal property, real estate)
  3. Interest expense (e.g., mortgage interest, investment interest, tracing rules, points)
  4. Charitable contributions (e.g., cash, non-cash, 50% vs. 30%, documentation required)
  5. Nonbusiness casualty and theft losses
  6. Miscellaneous itemized deductions
  7. Employee travel, transportation and entertainment expenses
  8. Other employee expenses (e.g., education, reimbursement, eligibility, home office)
  9. AGI limitations
  10. Allowed itemized deductions for Form 1040-NR

2 Credits

  1. Child and dependent care credit
  2. Child tax credits
  3. Education credits
  4. Foreign tax credit
  5. Earned income tax credit (e.g., paid preparer’s earned income credit checklist, eligibility and disallowance)
  6. Retirement contribution credit
  7. Adoption credits (e.g., carryovers, limitations, special needs)
  8. Other credits (refundable and non-refundable)

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Section 4: Taxation and Advice (21 items) – 20%

1 Taxation

  1. Alternative minimum tax
  2. Credit for prior year minimum tax
  3. Penalties and exceptions on premature distributions from qualified retirement plans and IRAs
  4. Household employees
  5. Underpayment penalties and interest
  6. Conditions for filing a claim for refund (e.g., amended returns)
  7. Self employment tax
  8. Excess social security withholding
  9. Tax provisions for members of the clergy

2 Advising the individual taxpayer

  1. Reporting obligations for individuals
  2. Property sales (e.g., homes, stock, businesses)
  3. Education planning (e.g., lifetime learning credit, IRC section 529 plans)
  4. Estate planning (e.g., gift versus inheritance, trusts, family partnerships, charitable giving, LTC, life insurance)
  5. Retirement planning (e.g., annuities, IRAs, employer plans, early retirement rules, required minimum distribution, beneficiary ownership)
  6. Marriage and divorce (e.g., divorce settlement, common-law, community property)
  7. Items that will affect future returns (e.g., carryovers, net operating loss, Schedule D, Form 8801)
  8. Injured spouse
  9. Innocent spouse
  10. Estimated tax
  11. Adjustments, deductions, and credits for tax planning
  12. Use of capital gain rates versus ordinary income rates (e.g., character of transaction)

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Section 5. Specialized Returns for Individuals (13 items) – 15%

1 Estate tax

  1. Gross estate
  2. Taxable estate: calculations and payments
  3. Unified credit
  4. Jointly-held property
  5. Life insurance and taxable estate
  6. Marital deduction and other marital issues
  7. IRAs and retirement plans
  8. Filing requirements

2 Gift tax

  1. Gift-splitting
  2. Annual per donee exclusion
  3. Unified credit
  4. Effect on estate tax (e.g., Generation skipping transfer tax)
  5. Filing requirements

(Back to top)

 

See Prometric 2014 Candidate Bulletin

See Prometric’s list of 2014 topics – start here

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