CPA Tax Compliance and Planning (TCP) Practice Test
Build your confidence for CPA Tax Compliance and Planning (TCP). Practice the concepts, understand the answers, and strengthen your knowledge one question at a time.
Try a sample questionExam overview and details
The CPA Tax Compliance and Planning (TCP) certification represents the pinnacle of specialized tax expertise within the accounting profession. Awarded by the American Institute of CPAs (AICPA), this credential validates a CPA's advanced proficiency in complex tax matters for individuals, entities, and estates. The TCP exam rigorously assesses a candidate's ability to navigate the intricate U.S. tax code, develop sophisticated tax strategies, ensure compliance, and represent clients before the IRS. Earning the TCP designation signals to employers, clients, and peers a deep commitment to the tax discipline and a mastery of both compliance and forward-looking planning. In an era of constant legislative change and heightened regulatory scrutiny, TCP-certified professionals are uniquely positioned to provide high-value advisory services, mitigate risk, and optimize financial outcomes. This certification is not merely an exam; it is a career-defining credential that distinguishes tax specialists in a competitive marketplace.
Sample Questions
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A tax senior is reviewing a current-year workpaper for a client involving hot assets. A partner sells a partnership interest, and the partnership holds unrealized receivables and substantially appreciated inventory. The client wants the return position with the least review adjustment risk. What character issue arises?
A tax senior is reviewing a current-year workpaper for a client involving S corporation loss limitation. An S corporation shareholder receives a Schedule K-1 showing a loss that exceeds stock basis and debt basis. The client wants the return position with the least review adjustment risk. What is the return treatment?
A tax senior is reviewing a current-year workpaper for a client involving C corporation capital loss. A C corporation has capital losses greater than capital gains in the current year. The client wants the return position with the least review adjustment risk. How should the excess be treated?
A tax senior is reviewing a current-year workpaper for a client involving complete disposition of passive activity. A taxpayer sells the entire interest in a passive activity to an unrelated buyer in a fully taxable transaction. The client wants the return position with the least review adjustment risk. What happens to suspended passive losses?
A tax senior is reviewing a current-year workpaper for a client involving S corporation stock basis. An S corporation reports ordinary income and then distributes cash to its sole shareholder during the same tax year. The client wants the return position with the least review adjustment risk. How is basis adjusted?
Career Opportunities & Salary
Exam insights and study advice
In today's complex regulatory environment, the TCP credential is a powerful differentiator that signifies elite tax knowledge and strategic acumen. It directly impacts career advancement by qualifying professionals for senior tax roles, partnership tracks, and specialized consulting positions. The certification is widely recognized by top accounting firms, corporations, and law firms as the gold standard for tax expertise, enhancing credibility with clients and increasing earning potential. It demonstrates a proactive commitment to maintaining the highest level of competency in a dynamic field, ensuring that professionals can provide authoritative guidance on the most challenging tax issues.
What this exam covers
Use the published domain weights to plan your study. Practice results do not predict your certification exam score.
01Income tax and NIC
Topics
- Determine, explain and calculate the income tax and NIC liabilities of individuals and businesses in given scenarios including employment, self-employment, property, and investment income
- Identify and explain the income tax and NIC implications of common planning scenarios including pensions, ISAs, and incorporation
Learning objectives
- Determine, explain and calculate the income tax and NIC liabilities of individuals and businesses in given scenarios including employment, self-employment, property, and investment income
- Identify and explain the income tax and NIC implications of common planning scenarios including pensions, ISAs, and incorporation
02Capital taxes
Topics
- Determine, explain and calculate the capital gains tax liabilities of individuals and businesses in given scenarios
- Determine, explain and calculate the inheritance tax liabilities of individuals in given scenarios
- Identify and explain the CGT and IHT implications of common planning scenarios including lifetime gifts, death estates, and business and agricultural reliefs
Learning objectives
- Determine, explain and calculate the capital gains tax liabilities of individuals and businesses in given scenarios
- Determine, explain and calculate the inheritance tax liabilities of individuals in given scenarios
- Identify and explain the CGT and IHT implications of common planning scenarios including lifetime gifts, death estates, and business and agricultural reliefs
03Corporation tax
Topics
- Determine, explain and calculate the corporation tax liabilities of companies in given scenarios including groups and overseas aspects
- Identify and explain the corporation tax implications of common planning scenarios including losses, groups, and chargeable gains
Learning objectives
- Determine, explain and calculate the corporation tax liabilities of companies in given scenarios including groups and overseas aspects
- Identify and explain the corporation tax implications of common planning scenarios including losses, groups, and chargeable gains
04Ethics, law and administration
Topics
- Recognise and explain the ethical, legal and professional issues arising from tax planning scenarios and identify the appropriate actions required to mitigate these issues
- Identify and explain the implications of tax planning, the interaction of taxes, and the ethical and legal issues in given scenarios
- Explain the administration of tax including tax assessments, penalties, enquiries, appeals, and payment of tax
- Identify and explain the implications of residence, domicile and remittance for tax purposes
Learning objectives
- Recognise and explain the ethical, legal and professional issues arising from tax planning scenarios and identify the appropriate actions required to mitigate these issues
- Identify and explain the implications of tax planning, the interaction of taxes, and the ethical and legal issues in given scenarios
- Explain the administration of tax including tax assessments, penalties, enquiries, appeals, and payment of tax
- Identify and explain the implications of residence, domicile and remittance for tax purposes
05Indirect taxes
Topics
- Determine, explain and calculate the VAT liabilities of businesses in given scenarios
- Determine, explain and calculate the stamp taxes liabilities of individuals and businesses in given scenarios
- Identify and explain the VAT and stamp tax implications of common planning scenarios
Learning objectives
- Determine, explain and calculate the VAT liabilities of businesses in given scenarios
- Determine, explain and calculate the stamp taxes liabilities of individuals and businesses in given scenarios
- Identify and explain the VAT and stamp tax implications of common planning scenarios