REG Exam Guide
Taxation and Regulation
Quick Answer
REG (Regulation) has the highest core section pass rate at 63% and takes 80–110 study hours. It covers federal taxation, business law, and ethics. On July 1, 2026, the AICPA updates the REG blueprint to include One Big Beautiful Bill Act provisions. Candidates sitting before that date test on the current blueprint; candidates sitting after test on the updated one.
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.
CPA Exam: Continuous Testing Year-Round
The CPA exam is now available year-round with continuous testing. Score releases happen quarterly — plan your study timeline to align with your target testing date.
Build My Study PlanExam Format & Time Management
Exam Structure
Recommended Pacing
Testlet Progression
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
- SALT deduction cap ($40,000 for filers under $500,000 AGI)
- OBBBA provisions: no-tax-on-tips deduction, overtime pay deduction (testable 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
- 5Business law requires memorization; use flashcards
- 6The REG blueprint updates July 1, 2026 for OBBBA provisions. Candidates close to ready should consider sitting before June 30 on the current blueprint. Candidates months away should study the new material at a normal pace rather than rushing.
Ready to find my best CPA course match?
Find My Best MatchFree • 3 minutes • Personalized recommendations
Best Courses for REG
Top-rated CPA review courses for mastering Taxation and Regulation
Study Resources for REG
REG Frequently Asked Questions
Other Exam Sections
Free REG Study Guide PDF
4-page guide with topic sequences, weekly timeline, and practice tracker for all 80–110 hours of REG prep.
Ready to Start Studying for REG?
Take our personalized LIFTS assessment to find the best CPA review course for your learning style, budget, and schedule.
Get Your Personalized Match