The short version
You do not choose between Part 1 and Part 2, because the Enrolled Agent credential needs both, plus Part 3. What you can choose is the order. The IRS lets you take the parts in any order. If you prepare individual returns, start with Part 1 (Individuals). If you work with partnerships, S corporations and company books, Part 2 (Businesses) may feel more natural first. Both share the same format, so the choice is about your background, not about difficulty.
Side-by-side table
| Part 1: Individuals | Part 2: Businesses | |
|---|---|---|
| Audience | Preparers and advisers of people | Preparers and advisers of businesses |
| Scope | Filing status, dependents, income, deductions, credits, estate and gift basics, foreign reporting | Entities, basis, business income and deductions, depreciation, trusts, exempt organizations, retirement plans |
| Domains (scored questions) | 6 domains: 14, 17, 17, 15, 11, 11 | 3 domains: 30, 37, 18 |
| Questions | 100, with 85 scored | 100, with 85 scored |
| Time | 3.5 hours | 3.5 hours |
| Passing | 500 on a 200 to 800 scale | 500 on a 200 to 800 scale |
| Retakes | 4 per window, 24 hours apart | 4 per window, 24 hours apart |
| Prerequisite to schedule | PTIN | PTIN |
| Tax year tested | 2025 (law through December 31, 2025) | 2025 (law through December 31, 2025) |
| Renewal | One credential for all parts; renewal is of the Enrolled Agent status, not of a part | Same |
Format, scoring, delivery by PSI, and the window of July 1, 2026 to February 28, 2027 are identical, as the IRS Candidate Information Bulletin (revised October 9, 2026) shows.
What each part asks you to do
Part 1 is about a person’s return. A scenario names a taxpayer, gives numbers, and asks which rule applies: who is a dependent, whether a credit phases out, what a retirement withdrawal costs, how an inherited asset is taxed, whether a foreign account must be reported. Its six domains are spread fairly evenly, so you cannot skip one.
Part 2 is about entities. It leans on basis: a partner’s basis, a shareholder’s basis, and how contributions, distributions and liquidations move it. The largest domain, Business Tax Preparation, covers income, cost of goods sold, deductions, depreciation, the qualified business income deduction and accounting methods. A smaller domain covers trusts and estates, exempt organizations, retirement plans, farms and rentals. Domain names are in the Part 2 guide.
Where they overlap
- Depreciation, sales of assets and basis appear in both, in different dress.
- Qualified business income deduction is on the individual return in Part 1 and on the business side in Part 2.
- Self-employment tax, pass-through K-1 income and rental income show up on both sides.
- Retirement plans: Part 1 treats distributions and rollovers; Part 2 treats plans a business offers.
- Estate and trust ideas touch Part 1 estate and gift tax and Part 2 trust income tax.
Studying one part helps with the other, which is why many people plan them close together, inside a single testing window.
Where they differ
- Part 1 questions often hinge on a single fact about a family: residency, support, age, marital status.
- Part 2 questions often hinge on entity type and whose basis is affected.
- Part 1 spreads questions over six areas; Part 2 puts about 44 percent of scored questions in one domain (our arithmetic: 37 of 85).
- Part 2 involves more multi-step entity calculations, while Part 1 involves more rule-matching across near-identical credits and deductions.
How to choose your order
- Work mostly with individual returns? Take Part 1 first. You will already know much of it.
- Work with company books or entity returns? Take Part 2 first.
- New to tax? Part 1 first is a common choice, because personal tax gives you the basics that business tax builds on. That is advice from experience, not an IRS rule.
- Short on time before the window closes on February 28, 2027? Book the part that takes you the most hours first, so you have room for a retake.
- Keep the clock in mind. Each passing score carries over for three years, and you need all three. See the renewal and retakes page for the rules.
A reasonable plan for most people: Part 1, then Part 2, then Part 3, with a gap of a few weeks between them. A fixed order is not required, and the study plan shows how to schedule the hours.
Frequently asked questions
Can I take both on the same day?
The IRS FAQ says parts need not be taken on the same day or on consecutive days. Both can be scheduled, but each is a separate 3.5-hour sitting, so most people space them.
Is Part 2 harder than Part 1?
It depends on your work. Both use the same scale and format. Part 1 has more topic spread; Part 2 has more depth in entity basis. See Is SEE Part 1 hard? for Part 1.
Do I need to pass Part 1 to sit Part 2?
No. The only requirement the bulletin lists to schedule is a PTIN.
More guides for SEE-PART1
- SEE Part 1 Format, Scoring and Retakes
- SEE Part 1 Domains Explained
- SEE Part 1 Sample Questions With Answers
- SEE Part 1 Prerequisites and Skills Check
- Is SEE Part 1 Worth It? An Honest Look
- SEE Part 1 Cheat Sheet: Key Facts to Review
Next step
Open the Part 1 overview and the Part 2 overview to compare the domains, then try the SEE Part 1 practice tests or the SEE Part 2 practice tests in the order you picked.