Tax Accountant Examination study plan
Tax Accountant Examination · Give each week a clear focus.
8 weeks · About 6 hours per week
Federal Taxation of Individuals
Map Domain 1 into its tested sub-areas: gross income inclusions and exclusions, above-the-line deductions, itemized deductions, and personal credits, and rank each sub-area by your current confidence
Compute adjusted gross income and taxable income for three fact patterns of increasing complexity, including one with self-employment income and one with capital gains and losses subject to the netting rules
Reconcile the difference between the standard deduction and itemized deductions for a taxpayer near the crossover point, and state which produces the lower tax
Draft a one-page formula sheet listing the individual tax computation sequence from gross income to total tax liability
Your checkpoint
A completed individual tax computation worksheet for three fact patterns, each carried from gross income through final tax liability, plus a one-page computation-sequence formula sheet
Federal Taxation of Individuals
Calculate gain or loss on the sale of a principal residence, applying the ownership-and-use tests and the exclusion limitation, including a partial exclusion scenario
Apply the basis rules for property received by gift and by inheritance, and compute the resulting gain or loss on a later sale
Determine the tax treatment of retirement plan distributions, including early distribution penalties and the exceptions that apply
Compute the additional taxes on net investment income and on self-employment earnings, and identify which income items enter each base
Your checkpoint
A set of ten worked individual scenarios covering residence-sale exclusion, dual basis, retirement distributions, and the two additional taxes, each with a computed answer and a citation to the controlling authority type
Federal Taxation of Entities
Compare the tax treatment of C corporations, S corporations, partnerships, and single-member LLCs on formation, operations, and distributions, and state the entity-level versus owner-level consequences of each
Compute an S corporation shareholder's basis rollforward for a year with income, a distribution, and a loss, and determine the loss deductible after applying the basis and at-risk limits
Compute a partner's outside basis and the partner's distributive share of ordinary income, separately stated items, and a nonliquidating distribution
Explain the requirements and terminating events for an S election, and identify the events that revoke or terminate it
Your checkpoint
A side-by-side entity comparison table covering formation, operations, distributions, and liquidation for four entity types, plus two completed basis rollforward schedules (S corporation and partnership) with deductible loss determined
Federal Taxation of Entities & Tax Accounting, Basis, and Timing
Compute corporate earnings and profits and determine the dividend versus return-of-capital character of a distribution
Apply the consolidated return and affiliated group basics at the level needed to identify when a group files one return
Classify transactions as taxable or nontaxable under the reorganization provisions and identify the boot and basis consequences
Apply the capitalization rules to determine which costs are currently deductible and which must be capitalized and recovered through depreciation or amortization
Your checkpoint
A written analysis of a corporate distribution and a reorganization fact pattern, each stating the taxability, the shareholder and entity consequences, and the basis of property received, with authority cited for each conclusion
Tax Accounting, Basis, and Timing
Determine the basis of property acquired by purchase, gift, inheritance, and exchange, and compute the adjusted basis after capital recoveries
Apply the realization and recognition rules to distinguish realized from recognized gain, and identify the nonrecognition provisions that defer gain
Compute depreciation and amortization under the applicable recovery systems and conventions for a multi-asset acquisition
Apply the cash versus accrual method rules, including the economic performance requirement and the treatment of advance payments
Your checkpoint
A basis and depreciation schedule for a multi-asset acquisition, showing original basis, adjustments, recovery period, convention, and annual deduction, plus a short memo on when an accrual-method taxpayer may deduct a contested liability
Tax Accounting, Basis, and Timing & Tax Research and Professional Ethics
Apply the claim-of-right and tax-benefit rules to determine the year of inclusion or deduction for a refunded or recovered item
Trace the authority hierarchy from statute through regulations, rulings, and case law, and rank sources by weight when they conflict
Practice a research workflow: state the issue, identify the facts, locate authority, and reach a conclusion supported by the strongest source
Apply the Circular 230 and preparer penalty standards to three short fact patterns describing questionable return positions
Your checkpoint
A research memo of roughly 600 to 800 words on one timing issue, structured as issue, facts, authority, analysis, and conclusion, with each authority cited and its weight explained
Tax Planning and Advisory Services & Tax Compliance and Reporting
Evaluate three planning alternatives for a client fact pattern, comparing after-tax outcomes and identifying the non-tax factors that could change the recommendation
Identify the reporting obligations triggered by a chosen planning strategy, including information returns and disclosure statements
Assemble a complete individual return from source documents, reconciling each income and deduction line to its supporting document
Identify the penalties that apply to late filing, late payment, and failure to file an information return, and compute each for a stated fact pattern
Your checkpoint
A client planning memo comparing three alternatives with after-tax numbers and a recommendation, plus a completed return checklist tying every line to a source document or a computed schedule
Federal Taxation of Individuals & Federal Taxation of Entities & Tax Accounting, Basis, and Timing & Tax Research and Professional Ethics & Tax Planning and Advisory Services & Tax Compliance and Reporting
Recompute the weakest three sub-areas identified in weeks 1 through 7 without notes and score your accuracy
Complete two timed mixed-domain practice sets and log every missed question by domain and by error type
Review the logged errors and write a corrected rule statement for each one
Rehearse the computation sequence for individual and entity returns from memory to confirm retention
Your checkpoint
An error log covering all missed practice questions, each with a corrected rule statement and the authority supporting it, plus a final one-page summary sheet of the highest-yield rules across all six domains
Milestones
Week 2: Complete an individual return from gross income to final tax liability, including capital gain netting, a residence-sale exclusion, and both additional taxes, with no reference to notes
Week 4: Produce the entity comparison table and both basis rollforwards from memory, then verify each entry against authority and score your accuracy at 80 percent or higher
Week 6: Write a research memo that cites at least three authority types in correct weight order and reaches a conclusion that follows from the cited authority
Week 7: Complete a full return and a planning memo within the planned weekly hours, with every line traceable to a source document or schedule
Week 8: Score 75 percent or higher on each timed mixed-domain practice set and show a written corrected rule for every missed question