The short version
You need both, so the real question is order. The IRS says the parts can be taken in any order. Take Part 2 first if you work with business returns and want to build on that knowledge. Take Part 3 first if rules, procedures and Circular 230 feel more natural to you than basis computations. Both parts share the same format, so the choice is about content, not logistics.
Side by side
| Item | Part 2: Businesses | Part 3: Representation, Practices and Procedures |
|---|---|---|
| Focus | Taxing businesses and specialized taxpayers | Rules for practicing before the IRS, procedures and filing |
| Domains (scored questions) | Business Entities 30; Business Tax Preparation 37; Specialized Returns 18 | Practices and Procedures 26; Representation 25; Specific Areas of Representation 20; Filing Process 14 |
| Style | Mix of recall and computation | Mostly rules and procedures, with fewer calculations |
| Questions | 100 (85 scored, 15 unscored) | 100 (85 scored, 15 unscored) |
| Time | 3.5 hours | 3.5 hours |
| Scoring | Scale 200 to 800; 500 passes | Scale 200 to 800; 500 passes |
| Retakes | Four per window; 24-hour wait | Four per window; 24-hour wait |
| Law covered | As amended through December 31, 2025 | As amended through December 31, 2025 |
| Required to schedule | A PTIN | A PTIN |
| Part of EA route | Yes | Yes |
| Renewal | Credential renewal applies after enrollment, not per part | Same |
All figures come from the IRS Candidate Information Bulletin revised October 9, 2026 and the IRS Enrolled Agent FAQ, checked October 22, 2026. The shares of each domain are our arithmetic and are on the two exam pages.
What Part 2 covers
Part 2 is business tax. Business Entities covers sole proprietors, partnerships, corporations, S corporations and LLCs, including classification, basis and distributions. Business Tax Preparation is the largest domain: income, deductions, depreciation, credits, accounting methods and advising business clients. Specialized Returns covers trusts and estates, exempt organizations, retirement plans, farms and rentals.
What Part 3 covers
Part 3 asks what you may do for a taxpayer and how. It covers practice rules under Circular 230, representation before the IRS, collection and examination procedures, appeals, and the filing process. Questions often turn on who may represent a taxpayer, which form does a job, or how many days you have to respond.
Where they overlap
- Both are multiple choice with four options and one best answer, in the same three-section layout with two scheduled breaks.
- Both follow the same tax-year cutoff.
- Business knowledge helps Part 3. Some representation questions involve business returns, penalties and records.
- Practice rules affect Part 2 clients. Advising a business client touches due diligence and record-keeping, which Part 3 treats formally.
Where they differ
- Skill type. Part 2 rewards computation and rule application. Part 3 rewards knowing rules, definitions and deadlines.
- Study method. Part 2 needs worked problems. Part 3 needs structured recall: tables, timelines and flow charts.
- Difficulty for different backgrounds. Candidates from individual returns often find Part 2 the steeper climb. Candidates with a strong procedural background find Part 3 faster. This is a general pattern, not a rule.
Which to take first
| If you… | Start with |
|---|---|
| Prepare business returns already | Part 2 |
| Come from individual returns and are new to entities | Part 1 or Part 3 first, then Part 2 |
| Want to start with something rule-based | Part 3 |
| Are short on time before March and April | Whichever you can finish in this window |
| Like to build momentum | The part you feel strongest in, to learn the exam format |
A useful pattern is to take the part you feel least sure about while you still have attempts left in the window. Remember that the next window tests newer law, so notes may need updating.
Taking both close together
You can sit both parts in the same window. The carryover is three years per part, so there is no rush beyond the window itself. If you take both, study them in blocks rather than mixing them: basis and depreciation need hands-on practice, while Part 3 needs spaced recall.
FAQ
Do I have to take Part 2 before Part 3?
No. The IRS says the parts can be taken in any order.
Are the passing scores different?
No. Both use a scaled passing score of 500.
Which is harder?
It depends on your background. See is SEE Part 2 hard and the Part 3 difficulty page.
More guides for SEE-PART2
- SEE Part 2 Exam Format and Scoring
- SEE Part 2 Domains Explained
- SEE Part 2 Sample Questions With Answers
- SEE Part 2 Prerequisites: What You Need
- SEE Part 2 Retakes and EA Renewal Explained
- Is SEE Part 2 Worth It? An Honest Look
- SEE Part 2 Cheat Sheet: Key Facts to Review
- SEE Part 1 vs Part 2: Which First?
Next step
Read the Part 2 overview and the Part 3 overview, then decide. For Part 2, see the study plan. Our practice sets are here: SEE Part 2 practice tests and SEE Part 3 practice tests. They are original and not IRS material.