Practice REG questions with explanations covering tax procedures, individual taxation, entity taxation and business law. Start below or play CPArcade’s Daily Challenge for a five-question mixed practice session.
These are real CPArcade questions pulled from the current question bank. Use them to test yourself before jumping into the Daily Challenge or Full Game.
Correct answer: B. 3 years from the later of the return due date or filing date
The standard SOL is 3 years from the later of the due date or actual filing date. It extends to 6 years for omissions exceeding 25% of gross income and is unlimited for fraud or failure to file.
Correct answer: C. Life insurance proceeds received due to the insured's death
Life insurance death proceeds are excluded from gross income under IRC Section 101. Gambling winnings, pre-2019 alimony and severance pay are all includible in gross income.
Correct answer: C. C corporation
C corporations face double taxation, tax at the entity level, then again when dividends are distributed to shareholders. S corps, partnerships and sole proprietorships are pass-through entities taxed only at the owner level.
Correct answer: B. $500 or more
Under UCC Article 2, the Statute of Frauds requires a writing for contracts for the sale of goods priced at $500 or more, signed by the party to be charged. Contracts below $500 fall outside this requirement, though they may still be fully enforceable if the other elements of a valid contract are met.
Correct answer: B. Extends to 6 years — the omission exceeds 25% of reported gross income
The 6-year SOL applies when a taxpayer omits gross income exceeding 25% of gross income reported on the return. $120,000 / $400,000 = 30% — exceeds the 25% threshold. The SOL extends to 6 years regardless of intent. Fraud triggers a separate unlimited SOL. This is a heavily tested distinction: 25% omission = 6 years; fraud = unlimited.
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Use these topic areas to decide what to review next.
Review penalties, due dates, authority and practice rules.
Practice AGI, deductions, credits and individual tax calculations.
Work through partnerships, corporations, basis and entity-level tax issues.
Review contracts, agency, secured transactions, bankruptcy and UCC concepts.