SEE Part 2 prerequisites: what you need first
SEE Part 2 has no prerequisite exam and no degree requirement that the IRS lists. To sit it you need a Preparer Tax Identification Number (PTIN) and an appointment with PSI, the IRS’s test vendor. You do not have to pass Part 1 first. The knowledge bar is different, though: Part 2 assumes you can read a profit and loss statement and reason about entity rules, which many individual-return preparers have never done.
What is formally required
| Requirement | Source and status |
|---|---|
| PTIN | Step 1 on the IRS enrolled agent page; needed to schedule (see exam format) |
| Booking and fee through PSI | PSI replaced Prometric as the SEE vendor from March 1, 2026, according to the IRS; the fee is $317 per part |
| Another SEE part passed first | No; the three parts can be taken in any order |
| Degree, licence or work experience | None listed on the IRS page |
| Age and citizenship | Not stated on the IRS page; confirm in the PSI Candidate Information Bulletin |
The exam being open does not mean it is equally easy for everyone. For the formal route after the exam (three parts within three years, Form 23, suitability check), see how to become an enrolled agent.
The background that helps
Part 2 is broad. The three domains are Business Entities and Considerations (30 scored questions), Business Tax Preparation (37) and Specialized Returns and Taxpayers (18). Useful background by area:
- Reading financial statements. Income statement, balance sheet, and the difference between cash and accrual accounting. Business Tax Preparation starts here, and you will convert book figures into taxable ones.
- Cost of goods sold and inventory. Which costs go in, and what the common inventory methods do to income.
- Depreciation concepts. Why assets are written off over time, what Section 179 and bonus depreciation are for, and the idea of recapture on sale.
- Basis. The most transferable skill: stock basis in an S corporation and outside basis in a partnership both follow the same logic of contributions, income, distributions and losses.
- How entities differ. Sole proprietorship, partnership, C corporation and S corporation: who files what, who pays tax, and what a distribution means in each. See business entities explained.
- Self-employment tax and the QBI deduction. The individual-side link to business income.
Prior Part 1 study helps with the individual side of pass-through income, but it is not required. Candidates with a bookkeeping or accounting background often find the financial-statement material familiar and the entity-specific rules new.
What you do not need
| Not needed | Why |
|---|---|
| A CPA licence or accounting degree | Not an IRS requirement; compare the two paths in enrolled agent vs CPA |
| Part 1 passed | Independent exam, any order |
| Knowledge of Circular 230 and representation | That is Part 3 |
| Experience running a business | Helpful context, but the exam tests rules, not management |
| Accounting software skills | Not tested |
A short self-check
Answer without notes:
- What is the difference between cash and accrual accounting, and who may use cash?
- Name two things that increase an S corporation shareholder’s stock basis.
- Who is taxed on a partnership’s income, and how does a partner learn their share?
- What is the difference between a C corporation distribution that is a dividend and one that is a return of capital?
- Why might an asset’s tax depreciation differ from its book depreciation?
If you could answer most, begin the study plan. If you struggled with basis or the entity types, spend a week on those before anything else; they underlie a large share of the questions.
Where this leads
Is Part 2 hard? explains where candidates lose points, and the sample questions show the level. Part 2 does not unlock anything by itself: the enrolled agent credential needs all three parts.