Summarized Notes for IRS Special Enrollment Examination Part 1: Comprehensive Guide

The IRS Special Enrollment Examination (SEE) is a rigorous examination that qualifies individuals to represent taxpayers before the Internal Revenue Service (IRS). Part 1 of the SEE covers the following topics:

Special Enrollment Examination Part 2 Notes - Businesses 2019-2024 Edition: Summarized notes for IRS Special Enrollment Examination Part 2

by Julia Hobsbawm

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* Individual Income Tax * Business Income Tax * Estate and Gift Tax * Trust Taxation * Ethics and Practice Requirements

This comprehensive guide provides summarized notes that will help you effectively prepare for the IRS Special Enrollment Examination Part 1.

Individual Income Tax

Gross Income

* Defined as all income from whatever source derived * Includes wages, salaries, tips, investment income, business income, and more

Deductions and Credits

* Deductions reduce taxable income * Credits reduce tax liability directly * Common deductions: standard deduction, itemized deductions (e.g., mortgage interest, property taxes) * Common credits: child tax credit, earned income tax credit

Taxable Income and Tax Liability

* Taxable income is gross income minus deductions * Tax liability is calculated based on taxable income using tax brackets

Filing Requirements

* Individuals must file a tax return if they meet certain income thresholds * Filing status (e.g., single, married filing jointly) affects filing requirements

Business Income Tax

Business Entities

* Sole proprietorships, partnerships, C corporations, S corporations, LLCs * Different tax treatment depending on entity type

Income and Expenses

* Business income is taxed * Business expenses are deductible (e.g., salaries, rent, supplies)

Accounting Methods

* Accrual method: Recognize income when earned and expenses when incurred * Cash method: Recognize income when received and expenses when paid

Business Tax Forms

* Schedule C (Form 1040): Self-employment income and expenses * Form 1120: C corporation income tax return * Form 1065: Partnership income tax return

Estate and Gift Tax

Estate Tax

* Taxed on the value of a person's property at death * Unified credit reduces tax liability, effectively exempting a certain amount

Gift Tax

* Taxed on gifts made during a person's lifetime * Annual exclusion reduces tax liability on small gifts * Lifetime exemption limits cumulative gifts over time

Filing Requirements

* Estate tax return (Form 706) must be filed for estates that exceed the unified credit * Gift tax return (Form 709) must be filed for gifts that exceed the annual exclusion

Trust Taxation

Types of Trusts

* Revocable vs. irrevocable * Simple vs. complex * Grantor vs. non-grantor

Taxation of Trusts

* Trusts are generally taxed as separate entities * Different tax rules apply to different types of trusts * Distributions from trusts may be taxable or not

Filing Requirements

* Form 1041: Income tax return for trusts

Ethics and Practice Requirements

Circular 230 Regulations

* Govern practice before the IRS * Prohibit certain conduct (e.g., conflict of interest, fraud)

Sanctions for Violations

* Loss of enrollment privileges * Fines * Imprisonment

Continuing Education Requirements

* Enrolled agents must complete continuing education credits every three years

Study Tips

* Review the IRS Course Texts thoroughly * Practice solving exam-style questions * Attend review courses or study groups * Utilize online resources and test-taking strategies * Manage your time effectively during the exam

Preparing for the IRS Special Enrollment Examination Part 1 requires a thorough understanding of the above topics. By studying these summarized notes diligently and following the recommended study tips, you can significantly increase your chances of passing the exam and earning your Enrolled Agent designation. Remember, success in the SEE ultimately depends on your dedication, effort, and mastery of the material.

Special Enrollment Examination Part 2 Notes - Businesses 2019-2024 Edition: Summarized notes for IRS Special Enrollment Examination Part 2

by Julia Hobsbawm

4.3 out of 5

Language	:	English
File size	:	2351 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Print length	:	78 pages
Lending	:	Enabled

FREE