Core SectionCPA Exam 2026
REG Exam Guide
Taxation and Regulation
64%
Pass Rate
80-110
Study Hours
72
MCQs (50%)
8
TBSs (50%)
Assesses knowledge and skills in U.S. federal taxation, ethics and professional responsibilities related to tax practice, and U.S. business law.
Pass Rate Insight: Highest pass rate among core sections. Strong for candidates with tax backgrounds.
Exam Format & Time Management
Exam Structure
Duration4 hours
Multiple Choice Questions72 (50% weight)
Task-Based Simulations8 (50% weight)
Optional Break15 minutes (after testlet 3)
Recommended Pacing
Time per MCQ~1.7 minutes
Time per TBS~15 minutes
MCQ Testlets2 testlets × 36 questions
TBS Testlets3 testlets (varies by section)
Testlet Progression
Testlet 1: MCQs→Testlet 2: MCQs→Break (Optional)→Testlets 3-5: TBSs
Content Blueprint
| Area | Content | Weighting |
|---|---|---|
| I | Ethics, Professional Responsibilities, and Federal Tax Procedures | 10-20% |
| II | Business Law | 10-20% |
| III | Federal Taxation of Property Transactions | 12-22% |
| IV | Federal Taxation of Individuals | 15-25% |
| V | Federal Taxation of Entities | 28-38% |
Key Topics Tested
- AICPA and Treasury Circular 230 requirements
- Contracts, debtor-creditor relationships, employment tax
- Property acquisition, disposition, depreciation
- Form 1040: gross income, deductions, credits
- C corporation and S corporation taxation
- Partnership and LLC taxation
- Tax-exempt organization requirements
Study Tips for REG
- 1Focus heavily on federal taxation — it makes up over half the exam
- 2Use Form 1040 as a study reference to match topics with form lines
- 3Stay current on tax law changes — REG is consistently updated
- 4Practice complex TBSs involving multiple entity types
- 5Business law requires memorization; use flashcards
Best Courses for REG
Top-rated CPA review courses for mastering Taxation and Regulation
REG Frequently Asked Questions
REG has the highest pass rate (64%) among core sections, but "easiest" depends on your background. Tax professionals often find REG straightforward, while those without tax experience may struggle.
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