What does the REG CPA section test?

Taxation and Regulation covers Ethics, Professional Responsibilities and Federal Tax Procedures; Business Law; Federal Taxation of Property Transactions; Federal Taxation of Individuals; Federal Taxation of Entities (including tax preparation). A tax answer depends on the taxpayer, transaction, period, character, and applicable limitations. Build those classifications into your workpaper so a familiar formula does not lead you to answer the wrong question.

How long is REG, and how many questions are on the exam?

REG has 4 hours of testing time, 72 MCQs, and 8 task-based simulations. The two MCQ testlets contain 36 and 36 questions. The three simulation testlets contain 2, 3, 3 TBSs.

How is REG weighted between MCQs and simulations?

MCQs contribute 50% of the section score and TBSs contribute 50%. The content-area ranges describe a different dimension: how the tested content is allocated across the blueprint. Neither set of percentages is a personalized study-time plan.

Is REG required for every CPA candidate?

REG is a required Core section, alongside the other two Core sections. Candidates also select one Discipline from BAR, ISC, and TCP.

Do I need an account for these REG questions?

No. All 5 sample questions, answer checking, explanations, progress, and reset controls on this page are free without signup. For more practice, create a free MiloPrep account with 100 questions in total, with daily limits. Your account stays free forever.

Are these official AICPA exam questions?

These are independently authored questions from the MiloPrep question bank. The AICPA blueprint defines the exam scope and format; it is not the source of these practice items.

Does this practice set cover the full REG blueprint?

This 5-question set is a starting point for practice and explanation review. It does not cover every blueprint task or predict an exam score. Use the linked REG study guide and official 2026 blueprint to plan complete coverage.

Core · Taxation and Regulation

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Substantiation and Disclosure
Question 1. Which IRS form is used by a taxpayer to disclose a position on a tax return that is contrary to a Treasury regulation in order to avoid certain accuracy-related penalties?
Answer to question 1A. Form 8275-R — Regulation Disclosure StatementB. Form 8283 — Noncash Charitable ContributionsC. Form 8275 — Disclosure StatementD. Form 8886 — Reportable Transaction Disclosure Statement
Explanation after you answer
Taxpayer Penalties
Question 2. A civil fraud penalty under the Internal Revenue Code is assessed at what rate on the portion of the underpayment attributable to fraud?
Answer to question 2A. 20%B. 25%C. 75%D. 100%
Explanation after you answer
Duties and Liabilities of Agents and Principals
Question 3. A partially disclosed principal exists when a third party knows that an agent is acting for a principal but does not know the principal's identity. Which of the following correctly states the contract liability in this situation?
Answer to question 3A. Only the agent is liable on the contractB. Only the principal is liable once the identity is revealedC. Neither the agent nor the principal is liableD. Both the agent and the principal may be liable on the contract
Explanation after you answer
Audits, Appeals and Judicial Process
Question 4. A taxpayer who wishes to contest a tax liability in the U.S. Court of Federal Claims must meet which of the following requirements?
Answer to question 4A. File a petition within 90 days of the notice of deficiency without paying the disputed taxB. Pay the full amount of the disputed tax and file a claim for refund before bringing suitC. Obtain approval from the IRS Appeals Office before filing the lawsuitD. Request a jury trial as part of the initial filing
Explanation after you answer
Gross Income
Question 5. Under the constructive receipt doctrine, when is income considered received by a cash-basis taxpayer?
Answer to question 5A. Only when the income is physically in the taxpayer's possessionB. When the income is earned, regardless of availabilityC. Only when the income is deposited in the taxpayer's bank accountD. When income is credited, set apart, or made available without substantial limitation
Explanation after you answer

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Questions from the MiloPrep question bank. Independently authored practice, not official exam items. This short set is for learning and does not predict an exam score.

2026 REG exam format

REG is one of the three required Core sections. Every CPA candidate completes AUD, FAR, and REG, plus one Discipline. The 4-hour exam combines multiple-choice questions with task-based simulations, which ask you to work through a case using the supplied information.

Section type

Core

Required for all candidates

Testing time

4 hours

Five testlets

Multiple-choice questions

72 MCQs

50% of the section score

Task-based simulations

8 TBSs

50% of the section score

How the five testlets are arranged

Testlet 1
36 MCQs
Testlet 2
36 MCQs
Testlet 3
2 TBSs
Testlet 4
3 TBSs
Testlet 5
3 TBSs

MCQs account for 50% of your section score; simulations account for 50%. These are score weights, so preparing for both formats matters. They do not prescribe how you should divide your study hours.

Verify the format with AICPA

What does REG test?

REG combines tax ethics and federal procedures, business law, and federal taxation of property, individuals, and entities. It tests whether you can identify the relevant parties and rules before calculating or choosing a legal consequence.

A tax answer depends on the taxpayer, transaction, period, character, and applicable limitations. Build those classifications into your workpaper so a familiar formula does not lead you to answer the wrong question.

How to study these skills

Classify first, calculate second. Record the taxpayer, tax year, transaction, basis, character, and requested output. Work through limitations in order and verify that the rule version matches the period in the question.

Read the free REG section guide

REG content areas and exam percentages

The AICPA blueprint effective January 1, 2026 defines these content areas and allocation ranges. Use every area in your study plan, then spend additional time where practice shows a gap.

REG blueprint content areas, study guidance, and allocation ranges
Content area and what to learn	Exam weight
Area I Ethics, Professional Responsibilities and Federal Tax Procedures	10-20%
Understand professional responsibilities in tax practice and the federal procedures governing taxpayers and practitioners. Practice focus: Identify the obligation or procedural consequence that applies to the parties in a tax-practice scenario.
Area II Business Law	15-25%
Connect legal relationships to rights, duties, and remedies. Distinguish the relevant parties and the facts that control a business-law outcome. Practice focus: Classify the relationship before selecting a contractual obligation or legal remedy.
Area III Federal Taxation of Property Transactions	5-15%
Track basis and the tax consequences of property transactions. Separate the amount of a result from its character and the timing of recognition. Practice focus: Build a basis schedule before calculating the result of a property disposition.
Area IV Federal Taxation of Individuals	22-32%
Work through income, adjustments, deductions, and the tax calculation for individuals. Apply the relevant eligibility conditions and limitations. Practice focus: Trace a set of income and deduction items through the individual tax computation.
Area V Federal Taxation of Entities (including tax preparation)	23-33%
Distinguish entity forms and their federal tax treatment. Connect entity transactions and tax preparation to the requested entity or owner-level result. Practice focus: Identify the entity and the required output before applying a tax rule or preparing a calculation.

The ranges describe content allocation, not a guaranteed question count for each topic. The blueprint also lists representative tasks, skill levels, and references; its task list is not exhaustive.

Open the official 2026 AICPA blueprint (PDF) REG study guide

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For each missed answer, note the rule you needed and the fact you overlooked. Review the related topic, then try a fresh scenario. Repeating a familiar set helps review the explanation, but broader practice is needed to check your understanding.

Free REG section guide

Connect the format and content areas to a study sequence, worked example, and review plan.

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Official AICPA blueprint

Check the 2026 content groups, representative tasks, skills, and references for Taxation and Regulation.

Open the blueprint PDF

More free CPA practice

Choose another Core or Discipline section and work through its questions and explanations.

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REG practice: questions and answers

What does the REG CPA section test?: Taxation and Regulation covers Ethics, Professional Responsibilities and Federal Tax Procedures; Business Law; Federal Taxation of Property Transactions; Federal Taxation of Individuals; Federal Taxation of Entities (including tax preparation). A tax answer depends on the taxpayer, transaction, period, character, and applicable limitations. Build those classifications into your workpaper so a familiar formula does not lead you to answer the wrong question.
How long is REG, and how many questions are on the exam?: REG has 4 hours of testing time, 72 MCQs, and 8 task-based simulations. The two MCQ testlets contain 36 and 36 questions. The three simulation testlets contain 2, 3, 3 TBSs.
How is REG weighted between MCQs and simulations?: MCQs contribute 50% of the section score and TBSs contribute 50%. The content-area ranges describe a different dimension: how the tested content is allocated across the blueprint. Neither set of percentages is a personalized study-time plan.
Is REG required for every CPA candidate?: REG is a required Core section, alongside the other two Core sections. Candidates also select one Discipline from BAR, ISC, and TCP.
Do I need an account for these REG questions?: No. All 5 sample questions, answer checking, explanations, progress, and reset controls on this page are free without signup. For more practice, create a free MiloPrep account with 100 questions in total, with daily limits. Your account stays free forever.
Are these official AICPA exam questions?: These are independently authored questions from the MiloPrep question bank. The AICPA blueprint defines the exam scope and format; it is not the source of these practice items.
Does this practice set cover the full REG blueprint?: This 5-question set is a starting point for practice and explanation review. It does not cover every blueprint task or predict an exam score. Use the linked REG study guide and official 2026 blueprint to plan complete coverage.

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