Should tax professionals take REG first?

Yes, if you work in tax, [starting with REG](/study/first-section) leverages your existing knowledge and can build confidence. Pairing REG with [TCP](/guides/tcp) as your discipline section creates a natural progression for tax professionals. However, [FAR](/guides/far) concepts appear in other sections, so consider your overall strategy.

Should tax professionals take REG first?

Yes, if you work in tax, [starting with REG](/study/first-section) leverages your existing knowledge and can build confidence. Pairing REG with [TCP](/guides/tcp) as your discipline section creates a natural progression for tax professionals. However, [FAR](/guides/far) concepts appear in other sections, so consider your overall strategy.

Core SectionCPA Exam 2026· Last updated: July 27, 2026

REG Exam Guide

Taxation and Regulation

67%

Pass Rate

80-110

Study Hours

MCQs (50%)

TBSs (50%)

Quick Answer

REG (Regulation) has the highest core section pass rate at 67% and takes 80–110 study hours. It covers federal taxation, business law, and ethics. As of July 1, 2026, the REG blueprint includes One Big Beautiful Bill Act provisions, so every REG exam now tests them.

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.

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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	15-25%
III	Federal Taxation of Property Transactions	5-15%
IV	Federal Taxation of Individuals	22-32%
V	Federal Taxation of Entities	23-33%

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
SALT deduction cap ($40,000 in 2025, $40,400 in 2026; phases down above $500,000 AGI)
OBBBA provisions: no-tax-on-tips deduction, overtime pay deduction (testable as of July 1, 2026)
Permanent TCJA provisions: individual brackets, standard deduction, child tax credit
Trump Accounts: tax-deferred savings for children born 2025-2028

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 — Gleim covers extensive tax scenarios across entity types
5Business law requires memorization; use flashcards
6The REG blueprint updated July 1, 2026 for OBBBA provisions, which are now testable. Study the current (OBBBA) versions of the affected tax rules.

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Best Courses for REG

Top-rated CPA review courses for mastering Taxation and Regulation

#1 for REG4.4 ★

Becker

$2,499–$4,999

Thorough tax coverage with current law updates

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#2 for REG4.1 ★

Surgent

$799–$1,699

Adaptive technology identifies tax knowledge gaps quickly

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#3 for REG3.9 ★

Gleim

$2,499–$3,499

Extensive tax practice questions for different scenarios

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Study Resources for REG

Exam Day Checklist

Prometric walkthrough, what to bring, calculator policy

Score Release Calendar

2026 score release dates and timeline

CPA Exam Resources

Supplements, practice tests, YouTube, podcasts, and more

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REG Frequently Asked Questions

REG has the highest pass rate (67%) among core sections, but "easiest" depends on your background. Tax professionals often find REG straightforward, while those without tax experience may struggle. Among all sections including disciplines, TCP holds the highest pass rate at 80%.

Business law makes up 15-25% of REG. While not the largest portion, it covers contracts, agency, debtor-creditor, and business structure topics that require memorization.

Yes, if you work in tax, starting with REG leverages your existing knowledge and can build confidence. Pairing REG with TCP as your discipline section creates a natural progression for tax professionals. However, FAR concepts appear in other sections, so consider your overall strategy.

REG is updated when tax law changes. The most recent major update was July 1, 2026, when One Big Beautiful Bill Act provisions became testable. This added new deductions (tips, overtime), raised the SALT cap to $40,000 in 2025 ($40,400 in 2026), restored 100% bonus depreciation permanently, and made TCJA individual provisions permanent. The AICPA standard is that new legislation becomes testable in the calendar quarter beginning six months after the effective date.

Yes. Since July 1, 2026, every REG exam tests the One Big Beautiful Bill Act provisions, so study the current (OBBBA) versions of the affected rules. A number of the OBBBA provisions actually simplify the exam by making temporary rules permanent and eliminating sunset scenario calculations.