US Certified Public Accountant (AICPA Uniform CPA Examination) · Core
CPA REG Taxation and Regulation: mock exams and practice questions
364 original exam-style questions for CPA REG Taxation and Regulation, with full timed mock exams in the real format and an explanation for every answer. Free for everyone until 31 January 2027.
- 364practice questions
- 5syllabus areas
- 4 hoursfull mock, like the real exam
CPA REG exam format
4 hours, computer-based: 72 multiple-choice questions in two testlets of 36, then 8 task-based simulations in testlets of 2, 3 and 3, with a 15-minute break after the first simulation testlet. Multiple-choice and simulations each count for 50%. AICPA blueprint effective 1 January 2026 (the 2027 blueprint only adds digital assets to one capital-gain task); tax year 2026 federal law as amended by H.R. 1 (P.L. 119-21), with 2026 rates and inflation-indexed amounts given in the questions. The pass mark is 70%.
| Section | Format | Marks |
|---|---|---|
| Section A | 72 four-option multiple-choice questions × 1 mark (two testlets of 36) | 72 |
| Section B | 8 task-based simulations × 9 marks: number entry, option lists, tax-form extracts, a research task and a document review | 72 |
| Total | 144 |
Syllabus areas covered
- I · Ethics, professional responsibilities and federal tax procedures52 questions
- II · Business law76 questions
- III · Federal taxation of property transactions36 questions
- IV · Federal taxation of individuals103 questions
- V · Federal taxation of entities97 questions
Try 3 free CPA REG questions
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Sample question 1 · I · Ethics, professional responsibilities and federal tax procedures
Delphine Quist is not an attorney, CPA or enrolled agent. She holds a valid PTIN and a 2026 Annual Filing Season Program Record of Completion. For a fee she prepared and signed Duarte Fenn's 2025 Form 1040. Under Circular 230 and the IRS rules for the program, which representation may Delphine provide for Duarte?
- A Represent him before a revenue agent who is examining the 2025 return she prepared and signed
- B Represent him before the IRS Independent Office of Appeals on the 2025 return she prepared
- C Represent him before a revenue officer collecting an unpaid balance on his 2025 return
- D Represent him in an examination of his 2023 return, which a different preparer signed
Show the answer
Answer: A. Unlimited practice before the IRS is open to attorneys, CPAs and enrolled agents (Circular 230 §10.3). An unenrolled preparer has only limited representation rights. Since 2016, these rights belong only to Annual Filing Season Program record holders. A record holder may represent a client only for a return she prepared and signed, and only before revenue agents, customer service representatives and similar IRS employees, including the Taxpayer Advocate Service. She may not appear before Appeals, revenue officers (collection) or IRS Counsel. Every paid preparer also needs a current PTIN.
Delphine prepared and signed the 2025 return, so she may represent Duarte before the revenue agent examining it.
Sample question 2 · II · Business law
Without any authority, Colette Barros, an employee of Halvorsen Marine LLC, signed a nine-month lease of a storage yard in Halvorsen's name. The lease makes the tenant responsible for all snow removal. Which statement about Halvorsen's ability to ratify the lease is correct?
- A Halvorsen may ratify the rent terms and reject the snow-removal clause
- B Halvorsen may ratify by conduct, using the yard with full knowledge of its terms
- C Ratification is effective only if Halvorsen signs a written ratification document
- D Halvorsen may ratify even after the landlord has withdrawn from the lease
Show the answer
Answer: B. For a principal to ratify an unauthorized act:
1. The agent must have purported to act on the principal's behalf (Barros signed in Halvorsen's name).
2. The principal must have existed and had capacity when the act was done and when it ratifies.
3. The principal must know all material facts when it ratifies.
4. It must ratify the entire transaction; it cannot keep the favorable terms and reject the rest.
5. The third party must not have withdrawn first.
Ratification can be express or implied by conduct, for example by knowingly using the yard and paying rent. A written ratification is needed only where the contract itself must be in writing (the equal dignities rule), and a nine-month lease is not. Ratification relates back, so Halvorsen is bound as if Barros had been authorized from the start. (Restatement (Third) of Agency §§4.01–4.07.)
Sample question 3 · III · Federal taxation of property transactions
On March 3, 2026 Bartholomew Achterberg received 400 shares of a listed company as a gift from his aunt. Her adjusted basis in the shares was $18,000 and their fair market value on the date of the gift was $12,500. No gift tax was paid. On October 20, 2026 Bartholomew sold all 400 shares for $15,200. What gain or loss does Bartholomew recognize on the sale?
- A $2,700 capital gain
- B $2,800 capital loss
- C No gain or loss
- D $5,500 capital loss
Show the answer
Answer: C. For property received by gift whose fair market value at the gift date is below the donor's adjusted basis, §1015(a) gives the donee two bases:
- Gain basis = donor's basis = $18,000
- Loss basis = lower of donor's basis or FMV at the gift date = $12,500
Sale price $15,200: using the gain basis there is no gain ($15,200 < $18,000); using the loss basis there is no loss ($15,200 > $12,500). So Bartholomew recognizes no gain or loss.
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