SEE Part 2
IRS Special Enrollment Examination — Part 2: Businesses
SEE Part 2 covers business entities: partnerships, S corporations, C corporations, sole proprietorships, farming, and estate and trust income. Business accounting methods, depreciation (MACRS), and payroll taxes are heavily tested.
Study Materials in C3RT
SEE Part 2 Exam Overview
| Detail | Information |
|---|---|
| Full Name | IRS Special Enrollment Examination — Part 2: Businesses |
| Governing Body | IRS / Prometric |
| Number of Questions | 100 |
| Time Limit | 3.5 hours |
| Passing Score | 105 (scaled) |
| Exam Fee | $206 |
| Category | Finance & Accounting |
| C3RT App Available On | iPhone, iPad, and Mac |
| Official Source | IRS / Prometric official website ↗ |
SEE Part 2 Content Areas and Domains
| Domain / Content Area | Exam Weight |
|---|---|
| Business Entities — General | 16% |
| Business Financial Information | 19% |
| Partnerships | 14% |
| Corporations | 17% |
| Other Business Topics (Depreciation, Employment Tax) | 19% |
| Advising the Business Taxpayer | 15% |
Domain weights are approximate and based on the IRS / Prometric content outline. Always verify at the official source before your exam.
Topics Covered
- ✓ Business entities overview
- ✓ Partnerships
- ✓ S corporations
- ✓ C corporations
- ✓ Farming and self-employment
- ✓ Depreciation and MACRS
- ✓ Payroll and employment taxes
How C3RT Helps You Pass the SEE Part 2
Adaptive Practice
Questions adapt to your weak areas automatically so every study session on the SEE Part 2 is time well spent.
Diagnostic Mocks
Full-length mock exams timed to the real SEE Part 2 format with detailed score breakdowns by topic.
Mistake Bank
Every wrong answer is saved for targeted re-drill. The system resurfaces your mistakes until they stick.
Native on iOS & Mac
Built with SwiftUI, not a web wrapper. Instant load, offline support, hardware-speed rendering.
Sample SEE Part 2 Practice Questions
Q1.John, a 40-year-old single father, earned $12,000 in wages in Year 1 and received $3,000 in child care expenses. He has two qualifying children under 13. He wants to know if he is eligible for the Earned Income Credit (EIC) and what his potential refund might be. What should the EA advise?
- John is not eligible for EIC because his income is too low.
- John is eligible for EIC, and his potential refund is $3,000.
- John is eligible for EIC, but his potential refund is $1,400.Correct
- John is eligible for EIC, and his potential refund is $2,000.
John's income and number of qualifying children meet the eligibility requirements for the EIC. For a single filer with two qualifying children, the maximum credit in Year 1 is $1,400.
Q2.All of the following are true EXCEPT:
- Employers are required to post a notice about the EIC for employees who may be eligible.
- The notice must be posted in a conspicuous place where employees can easily see it.
- The notice must be posted in all branches of a business, even if some are seasonal.Correct
- The notice must be posted in a language that is understood by the employees.
Publication 15 does not require the notice to be posted in all branches of a business. It only requires that the notice be posted in a conspicuous place and in a language understood by employees.
Q3.All of the following are true EXCEPT:
- Withholding on qualified tips is allowed for tax year 2026.
- Withholding on qualified tips is allowed for tax year 2025.Correct
- Withholding on qualified tips is not allowed for tax year 2024.
- Withholding on qualified tips is allowed for tax year 2028.
Withholding on qualified tips is only allowed for tax years beginning after 2024. Therefore, it was not allowed for tax year 2025 (Option B is false).
SEE Part 2 Frequently Asked Questions
What does SEE Part 2 stand for?
SEE Part 2 stands for IRS Special Enrollment Examination — Part 2: Businesses. It is administered by IRS / Prometric.
Who administers the SEE Part 2?
The IRS Special Enrollment Examination — Part 2: Businesses (SEE Part 2) is administered by IRS / Prometric. For official information, visit the IRS / Prometric website.
How many questions is the SEE Part 2?
The SEE Part 2 consists of 100 questions. Candidates are given 3.5 hours to complete the exam.
How many practice questions does C3RT have for the SEE Part 2?
The C3RT app includes 5,728 practice questions for the SEE Part 2, along with 295 flashcards, 732 concept reels, and 270 concept cards.
What is the passing score for the SEE Part 2?
The passing score for the SEE Part 2 is 105 (scaled), as set by IRS / Prometric. Scoring methodology and passing standards may be updated periodically. Always verify current requirements with the governing body.
How much does the SEE Part 2 exam cost?
The SEE Part 2 exam fee is $206. This fee is set by IRS / Prometric and may vary by testing centre, region, or membership status. Additional fees for registration or rescheduling may apply.
What is the hardest SEE part?
Most candidates find Part 2 (Businesses) the most challenging due to the breadth of entity types and complex depreciation rules. Starting with Part 1 (Individuals) to build a foundation is a common strategy.
How hard is the SEE Part 2 exam?
SEE Part 2 (Businesses) is widely considered the most difficult of the three SEE parts. Pass rates are typically 5–10 percentage points lower than Part 1. The content spans partnerships, S corporations, C corporations, trusts, estates, and farm income, each with distinct tax rules that require substantial preparation.
What content is covered on SEE Part 2?
Part 2 covers business entities and special tax situations: partnerships (formation, operations, distributions, sales), S corporations (elections, income/loss allocation, basis, AAA), C corporations (taxable income, dividends, liquidations), LLCs, trusts and estates, farm income and expenses, and retirement plans. Understanding pass-through entity taxation is particularly important.
How long should I study for SEE Part 2?
Most candidates invest 8–14 weeks on Part 2, more than any other part. Focus on the entity types sequentially: master partnership taxation first, then S corps, then C corps. Using an EA prep course with topic-by-topic practice questions and simulated exams dramatically improves results.
In what order should I take the SEE parts?
Most tax professionals and prep providers recommend Part 1 first (to build a foundation with individual taxation), then Part 2 (the most challenging, while momentum is high), then Part 3. However, candidates may take the parts in any order, and some prefer to tackle Part 3 early as it is largely procedural and not as content-heavy.
What is the retake policy for SEE Part 2?
The same policy as Parts 1 and 3 applies: a 24-hour waiting period after a failure, up to four attempts per testing window. Passed Part 2 scores remain valid for two years, during which you must pass the remaining parts.
How does SEE Part 2 compare to SEE Part 1?
Part 1 focuses on the relatively familiar territory of individual taxation — income, deductions, credits. Part 2 shifts to business entity taxation, which involves multiple distinct rule sets that interact in complex ways (particularly basis, at-risk rules, and passive activity rules for pass-through entities). Most candidates find the transition from individual to business taxation the steepest learning curve.
How is SEE Part 2 scored?
Like all SEE parts, Part 2 is scored on a 40–130 scale with 105 as the passing score. The 100 questions include some pilot (unscored) items. Results are displayed immediately on-screen at the Prometric testing center.
C3RT is a native iOS and macOS exam preparation platform covering the IRS Special Enrollment Examination — Part 2: Businesses (SEE Part 2), a Finance & Accounting certification, administered by IRS / Prometric. C3RT is not affiliated with or endorsed by IRS / Prometric. Certification names and trademarks are the property of their respective organisations. For official exam registration, eligibility requirements, and content outlines, visit the IRS / Prometric official website ↗ .