Enrolled Agent Exam Part 2 Practice Test: Free SEE Businesses Questions (Tax Year 2025)
400 practice questions for Part 2 of the enrolled agent exam (Businesses), all for tax year 2025, the year the July 1, 2026 - February 28, 2027 window tests. They follow the three domains of the IRS content outline and its weights: business tax preparation (37 scored questions), business entities and considerations (30), and specialized returns and taxpayers (18). Expect partnership basis, S corporation distributions, section 351 transfers, depreciation after the 2025 law changes, worker classification, fiduciary returns, UBIT and the rental loss rules. Every answer explains why, with a Remember line, and links its source. A study aid, not tax advice.
The real test: Each part of the SEE is 100 multiple-choice questions (85 scored, 15 unscored) in 3.5 hours, scaled from 200 to 800 with 500 to pass, $317 per part. The July 1, 2026 to February 28, 2027 window tests tax year 2025 law, including the 2025 changes to bonus depreciation, section 179 and business interest. Part 2 follows the IRS content outline: business tax preparation (37 scored questions), business entities and considerations (30) and specialized returns and taxpayers (18). Our practice test is full length, 85 scored plus 15 unscored questions in 210 minutes, split like the outline, passing at 60 of 85 (about 70%).
Here: 400 questions. Our own practice questions on the IRS content outline for Part 2 of the Special Enrollment Examination, written for tax year 2025 from the Internal Revenue Code, Treasury regulations, Circular 230 and the 2025 editions of IRS publications and form instructions, with every answer's source named and linked. Not IRS sample questions or any test's items. Free.
"On the test" is the rough share of a 85-question test for each topic, following the exam's published weights.
10 sample questions
How does a sole proprietor report business profit for 2025?
A.On Form 1065, because every business owner files a separate business return
B.On Schedule C with Form 1040, with self-employment tax on Schedule SE
C.On Form 1120, unless the owner elects to be taxed as a disregarded entity
D.On Schedule E, because the owner does not receive a salary from the business
Show answer
B. On Schedule C with Form 1040, with self-employment tax on Schedule SE
EA2-1 · 1. Business Entities and Considerations · Pub. 334, Schedule C instructions
A cash-method sole proprietor's 2025 Forms 1099-K show $48,000, but $3,000 of that was sales tax collected and $2,000 was refunds to customers. How should gross receipts be reported?
A.Report $48,000 exactly, because Schedule C must match the 1099-K total
B.Report actual receipts, reconciling the 1099-K amounts to the books
C.Report $43,000 and attach the Forms 1099-K to explain the difference
D.Report only the receipts shown on Forms 1099-NEC, ignoring the 1099-K
Show answer
B. Report actual receipts, reconciling the 1099-K amounts to the books
EA2-93 · 2. Business Tax Preparation · Schedule C instructions, Pub. 334
What makes a trust a simple trust for a given tax year?
A.Its assets are worth less than $1 million at the end of the year
B.It has only one beneficiary, who must be the grantor's spouse or child
C.It must distribute all income currently, makes no charitable gifts and distributes no principal that year
D.The grantor keeps the power to revoke the trust at any time
Show answer
C. It must distribute all income currently, makes no charitable gifts and distributes no principal that year
EA2-207 · 3. Specialized Returns and Taxpayers · IRC 651, Form 1041 instructions
Which is a disadvantage of operating as a sole proprietorship?
A.The owner must pay himself a reasonable salary through payroll each year
B.The business must file its own tax return and pay a separate corporate tax
C.The owner has unlimited personal liability for the business's debts
D.Business losses can never offset the owner's other income on Form 1040
Show answer
C. The owner has unlimited personal liability for the business's debts
EA2-2 · 1. Business Entities and Considerations · Pub. 583, Pub. 334
An accrual-method business receives a $12,000 advance payment in November 2025 for services it will perform through 2026. When must it report the income?
A.It may defer the part not yet earned to 2026
B.Evenly over 24 months, starting in November 2025
C.All $12,000 in 2026, when the services will be complete and the business has earned the full fee under the contract
D.All $12,000 in 2025, because an accrual-method business has no deferral choice
A grantor sets up a revocable living trust. How is its income taxed during the grantor's life?
A.To the grantor, as a grantor trust
B.To the trust itself, at the compressed trust tax rates on Form 1041
C.Not at all until the grantor dies and the trust becomes irrevocable
D.To the named beneficiaries, whether or not they receive any money
Show answer
A. To the grantor, as a grantor trust
EA2-208 · 3. Specialized Returns and Taxpayers · IRC 671, Form 1041 instructions
A married couple owns and runs a bakery together (not an LLC) in a common-law state, both materially participating, and files jointly. What can they elect?
A.To file Form 1120-S as an S corporation without filing Form 2553
B.Qualified joint venture status: two Schedules C and SE, no Form 1065
C.To have only the husband report the business on Schedule C, since spouses count as one owner
D.Nothing; any business with two owners must file a partnership return on Form 1065
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B. Qualified joint venture status: two Schedules C and SE, no Form 1065
EA2-3 · 1. Business Entities and Considerations · IRC 761, Pub. 541
A retailer has average annual gross receipts of $4 million for the three prior years. Which inventory rule may it use for 2025?
A.It must use the accrual method for all income and expenses because it has inventory
B.It may skip formal inventories and follow its books or treat goods as supplies
C.It must use LIFO and capitalize costs under the uniform capitalization rules
D.It may deduct all inventory purchases in the year paid, whether or not sold
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B. It may skip formal inventories and follow its books or treat goods as supplies
EA2-95 · 2. Business Tax Preparation · IRC 471, Rev. Proc. 2024-40
A promoter sells a scheme in which a business owner puts his house and business into a trust so household expenses become trust deductions. How does the IRS treat it?
A.As a valid complex trust, because the trust document was signed and recorded
B.As an exempt organization, if the trust files Form 1023 within 27 months
C.As a grantor trust, which lets the expenses be deducted on the owner's own return
D.As an abusive trust: ignored, with the owner taxed and penalized
Show answer
D. As an abusive trust: ignored, with the owner taxed and penalized