EA case studies
EA · Put your knowledge to work in context.
The Enrolled Agent (EA) credential is a federal tax credential issued by the IRS. The agency itself describes enrolled agents as holding "the highest credential the IRS awards," and it maintains a dedicated program office, renewal process, continuing education requirements, and a status-verification service for them. The EA case studies are 5 cases and about 3,911 words.
1Renee - Side Consultancy: Hobby or Business?
Renee is single, age 41, and works full time as a hospital RN earning 92,000 in W-2 wages. Since 2021 she has sold herbal remedy consultations on the side.
789 words, about 4 min2Cedar & Slate - S Corporation Reasonable Compensation
Cedar & Slate Design, Inc. is a calendar-year S corporation owned 100% by Priya, who works about 50 hours a week as lead designer, handles all client sales, and supervises two employees paid 58,000 and 64,000.
746 words, about 4 min3Marcus - Notice of Deficiency: Deadline and Forum
On March 3, 2025, the IRS mailed a statutory notice of deficiency by certified mail to Marcus's last known address, disallowing 96,000 of Schedule C subcontractor expenses for 2022 and asserting a 34,800 deficiency plus a 6,960 §6662 accuracy-related penalty. Marcus had moved on February 1, 2025, and filed Form 8822 in April without telling you.
846 words, about 4 min4Kayla - Unreported 1099-K Discovered Mid-Season
In May 2025 you are preparing Kayla's 2024 Form 1040. While reconciling a Form 1099-K from an online marketplace, you realize that 63,000 of 2024 gross receipts were reported on a 1099-K issued under Kayla's Social Security number, but she says the shop is her son Devin's and uses her name "for convenience." The same pattern appears on the 2023 return you prepared and signed last year, which omitted the 41,000 the marketplace reported; you did not ask about it then.
809 words, about 4 min5NO Analytics - Basis, Distribution, and Suspended Loss
Nadia is a 50% member of NO Analytics LLC, a calendar-year entity taxed as a partnership with no debt and no §754 election. She materially participates and is not passive.
721 words, about 4 min