IRS Study Guide 2026
Everything you need to pass the IRS exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.
📋 IRS Exam Format at a Glance
📚 IRS Topics to Study (63)
✍️ Sample IRS Questions & Answers
1. A taxpayer who disagrees with an IRS audit finding can request a conference with which office before going to court?
The IRS Independent Office of Appeals provides an impartial review of tax disputes between taxpayers and the IRS without litigation.
2. A taxpayer sells stock for $15,000 that was purchased for $10,000 two years ago. What is the character of the $5,000 gain?
Stock held more than one year generates a long-term capital gain taxed at preferential rates.
3. What is the American Opportunity Tax Credit (AOTC) and who qualifies?
The AOTC provides up to $2,500 per eligible student for qualified education expenses during the first four years of higher education, with 40% refundable.
4. What is the maximum amount of student loan interest a taxpayer may deduct per year?
Taxpayers may deduct up to $2,500 in student loan interest paid during the year, subject to income phase-outs.
5. Which IRS division operates the Taxpayer Education and Communication (TEC) program?
The SB/SE division operates TEC to educate small business owners and self-employed individuals about their tax obligations.
6. Which of the following is a requirement for maintaining 501(c)(3) status?
To maintain 501(c)(3) status, an organization must primarily operate for charitable, educational, religious, or scientific purposes, among others. This means its activities must consistently further its tax-exempt mission. Distributing profits to shareholders, operating internationally, or paying federal income tax on all income are contrary to or not requirements for this specific tax-exempt status.