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100+ Free IRS TCO Practice Questions

Pass your IRS Tax Compliance Officer (TCO) Entrance Exam exam on the first try — instant access, no signup required.

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Letter 525 (the 30-day letter) gives the taxpayer how long to respond by either agreeing to proposed adjustments or requesting consideration by IRS Appeals?

A
B
C
D
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2026 Statistics

Key Facts: IRS TCO Exam

Series 0526

Federal Job Series

OPM Tax Specialist Series 0526

GS-5/7/9

Entry Grade Ladder

IRS Careers

$2,200

2025 Child Tax Credit Max

IRS Child Tax Credit page (2025)

$1,700

2025 ACTC Refundable Portion

IRS Child Tax Credit page (2025)

10

RRA 98 Section 1203 Deadly Sins

IRS Restructuring and Reform Act of 1998

1 year

Probationary Period

IRM 6.300.1 / OPM

$0

Candidate Fee

USAJOBS / IRS Careers

The IRS TCO assessment is an online battery (~2 hours) used for Series 0526 Tax Specialist (TCO) hiring at the GS-5/7/9 entry grades. It mixes federal tax knowledge (Publication 17 / current IRC), basic accounting and math, audit-procedure questions (IRM Part 4, Form 4549, Letters 525 and 3219), reading comprehension on IRS publications and notices, and federal-employee situational judgment (5 CFR 2635 ethics, Hatch Act, RRA 98 Section 1203 '10 deadly sins,' Section 6103 confidentiality, and UNAX). There is no candidate fee, scoring drives a category rating (A/B/C) that feeds into best-qualified selection, and re-testing is tied to a new vacancy announcement. The TCO assessment is a federal-employee hiring instrument; it is NOT the IRS Special Enrollment Examination (SEE) for private Enrolled Agents.

Sample IRS TCO Practice Questions

Try these sample questions to test your IRS TCO exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1A taxpayer is unmarried at year-end, paid more than half the cost of keeping up a home that was the main home of a qualifying child for more than half the year, and is not a surviving spouse. Which filing status is correct?
A.Single
B.Head of household
C.Qualifying surviving spouse
D.Married filing separately
Explanation: Head of household (HoH) requires unmarried (or considered unmarried) status at year-end, paying more than half the cost of keeping up the home, and a qualifying person living with the taxpayer for more than half the year. See IRC Section 2(b) and Publication 501.
2For 2025, what is the maximum Child Tax Credit per qualifying child and the maximum refundable portion (Additional Child Tax Credit)?
A.$2,000 total; $1,400 refundable
B.$2,200 total; $1,700 refundable
C.$3,000 total; fully refundable
D.$500 total; nonrefundable
Explanation: For tax year 2025 the Child Tax Credit is up to $2,200 per qualifying child, with up to $1,700 refundable as the Additional Child Tax Credit. See IRC Section 24 as adjusted and the IRS Child Tax Credit page.
3Which of the following is NOT one of the four tests for a qualifying child under IRC Section 152(c)?
A.Relationship
B.Age
C.Residency
D.Gross income
Explanation: The qualifying child tests under IRC Section 152(c) are relationship, age, residency, support, and joint-return; there is no gross-income test for a qualifying child. The gross-income test applies to a qualifying relative under Section 152(d).
4Under IRC Section 61, gross income generally means:
A.Only wages reported on Form W-2
B.All income from whatever source derived, unless specifically excluded
C.Income earned within the United States only
D.Only income reported on an information return
Explanation: IRC Section 61 defines gross income as 'all income from whatever source derived' unless specifically excluded (e.g., Sections 101-139). This broad definition is the starting point of every individual return.
5Which item is generally EXCLUDED from gross income under IRC Sections 101-139?
A.Tip income reported to the employer
B.Gambling winnings
C.Compensatory damages received on account of physical injury or physical sickness
D.Cancellation of personal credit card debt by a solvent debtor
Explanation: IRC Section 104(a)(2) excludes damages received on account of personal physical injuries or physical sickness from gross income. Punitive damages and most emotional-distress damages remain taxable.
6What is the SALT (state and local tax) itemized deduction cap on Schedule A for individuals after the Tax Cuts and Jobs Act?
A.$5,000
B.$10,000
C.$25,000
D.No cap
Explanation: IRC Section 164(b)(6) caps the combined state and local income, sales, and property tax deduction at $10,000 ($5,000 if married filing separately) through current law.
7For a mortgage taken out after December 15, 2017, the qualified-residence interest deduction is limited to interest on acquisition debt of up to:
A.$1,000,000
B.$750,000
C.$500,000
D.$100,000
Explanation: IRC Section 163(h)(3)(F) limits acquisition indebtedness for post-12/15/2017 mortgages to $750,000 ($375,000 MFS). Pre-existing mortgages retain the $1,000,000 limit.
8Medical expenses are deductible on Schedule A only to the extent they exceed what percentage of adjusted gross income (AGI)?
A.2%
B.5%
C.7.5%
D.10%
Explanation: Under IRC Section 213(a), unreimbursed medical and dental expenses are deductible only to the extent they exceed 7.5% of AGI.
9Self-employment tax under IRC Section 1401 consists of which two components?
A.Federal income tax and FUTA
B.Social Security at 12.4% (up to the wage base) and Medicare at 2.9% (no cap)
C.FICA at 7.65% and SUTA
D.Social Security at 6.2% and Medicare at 1.45%
Explanation: Self-employment tax is 15.3% on net earnings from self-employment: 12.4% Social Security up to the Social Security wage base plus 2.9% Medicare with no cap. Self-employed individuals pay both employee and employer halves.
10Additional Medicare tax of 0.9% applies to wages or self-employment income above what threshold for a single filer?
A.$125,000
B.$200,000
C.$250,000
D.$400,000
Explanation: IRC Section 3101(b)(2) and Section 1401(b)(2) impose an additional 0.9% Medicare tax on wages plus self-employment income above $200,000 for single filers and $250,000 for MFJ.

About the IRS TCO Exam

The IRS Tax Compliance Officer (TCO) entrance exam is the online assessment used to qualify candidates for federal Tax Specialist (Series 0526) vacancies. It combines federal-tax-law and accounting knowledge, examination-procedure questions, reading comprehension, math/quantitative reasoning, and a situational judgment component covering federal-employee ethics, IRC Section 6103 confidentiality, and customer service under the Taxpayer Bill of Rights. The assessment is delivered unproctored through the IRS Online Application System after USAJOBS eligibility screening.

Questions

100 scored questions

Time Limit

~2 hours

Passing Score

Category rating (A/B/C) — best qualified is selected

Exam Fee

No fee — part of IRS federal hiring (Internal Revenue Service via USAJOBS / IRS Online Application System)

IRS TCO Exam Content Outline

~30%

Federal Income Tax Fundamentals

Filing status, dependents, gross income, deductions, credits, depreciation, self-employment tax, and penalties under the current Internal Revenue Code.

~15%

Examination & Audit Procedures

TCO and Revenue Agent examination scope, Form 4549, audit letters, Appeals, and Tax Court vs refund-court jurisdiction.

~15%

Accounting & Math

Debits and credits, cash vs accrual accounting, basic financial statements, inventory methods, and tax-related calculations.

~10%

Reading Comprehension

Interpreting IRC and Treasury Regulation excerpts, IRS publications, and taxpayer notices to choose the correct response.

~15%

Federal Employment & Civil-Service SJT

Ethics, Hatch Act, RRA 98 Section 1203, Section 6103 confidentiality, EEO obligations, and customer-service judgment.

~5%

Probation, Career & CPE

1-year probationary period, GS-5/7/9 career ladder, journey grade, and Continuing Professional Education for IRS examiners.

~5%

Logic & Quantitative Reasoning

Word problems, percentages, ratios, deductive reasoning, and tax-context pattern recognition.

~5%

Information Security

Section 6103 disclosure rules, UNAX, FISMA/NIST controls, and identity-theft / IP PIN handling.

How to Pass the IRS TCO Exam

What You Need to Know

  • Passing score: Category rating (A/B/C) — best qualified is selected
  • Exam length: 100 questions
  • Time limit: ~2 hours
  • Exam fee: No fee — part of IRS federal hiring

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

IRS TCO Study Tips from Top Performers

1Anchor your tax-law study in IRS Publication 17 for the current tax year — the assessment mirrors Pub 17 framing for filing status, dependents, and basic credits.
2Memorize 2025-tax-year amounts that frequently appear: standard deduction, CTC $2,200 (up to $1,700 refundable), SALT cap $10,000, $750,000 mortgage interest cap, and 7.5%-AGI medical threshold.
3Learn the qualifying-child four-part test and qualifying-relative four-part test cold — these dependent rules drive multiple items.
4Practice IRM Part 4 examination procedure: Form 4549, Letter 525 (30-day), Letter 3219 (90-day Statutory Notice of Deficiency), and the distinction between Tax Court (no payment required) and refund court (pay first).
5Drill 5 CFR 2635 ethics, the Hatch Act, RRA 98 Section 1203 (the '10 deadly sins'), IRC Section 6103 confidentiality, and Section 7213/7213A UNAX penalties — these dominate the SJT block.
6For SJT items, always pick the answer that protects the Taxpayer Bill of Rights and Section 6103 confidentiality, even when an alternative looks more efficient or customer-friendly.
7Refresh debit/credit mechanics, cash vs accrual under Section 446, FIFO/LIFO inventory effects, and basic percentage and ratio math under timed pressure.
8Treat the TCO assessment as distinct from the IRS Enrolled Agent SEE — overlap on tax content is real, but procedural and ethics scope is very different.

Frequently Asked Questions

What is the IRS Tax Compliance Officer (TCO) exam?

The TCO entrance exam is an online assessment used by the IRS to qualify candidates for federal Tax Specialist (Series 0526) Tax Compliance Officer vacancies. It covers tax-law knowledge, accounting, examination procedures, reading comprehension, math, and federal-employee situational judgment.

Is this the same as the IRS Enrolled Agent SEE?

No. The TCO assessment is a federal hiring instrument for the IRS Tax Specialist Series 0526 position. The Special Enrollment Examination (SEE) is a Prometric-delivered three-part exam for private practitioners who want to become Enrolled Agents authorized to represent taxpayers before the IRS. The two exams test overlapping tax content but are not interchangeable.

How long is the TCO assessment and how is it delivered?

The online assessment runs roughly 2 hours and is delivered unproctored through the IRS Online Application System after USAJOBS eligibility screening. Exact length varies by vacancy announcement.

How is the TCO assessment scored?

Assessment performance, combined with resume and education, drives a federal category rating of A (Best Qualified), B (Highly Qualified), or C (Qualified). IRS does not publish a numeric cutoff score.

What grade does a TCO start at?

The Tax Compliance Officer is typically posted at GS-5 or GS-7 entry with promotion potential through GS-9 (the journey grade for the position). Revenue Agent (Series 0512) vacancies can extend to GS-13.

How much does the TCO assessment cost?

There is no candidate fee. The assessment is part of the federal hiring process for IRS Tax Specialist Series 0526 vacancies.

Can I retake the TCO assessment if I fail?

Yes — re-testing is tied to a new vacancy announcement. When a new IRS Tax Specialist (TCO) posting opens on USAJOBS, you may reapply and complete the assessment again.

What background and tax-compliance requirements apply?

U.S. citizenship is required, a Moderate Risk Public Trust background investigation is conducted, and candidates must self-certify that all required federal tax returns are filed and any balances are paid or covered by an installment agreement. A 1-year probationary period applies after appointment.

What is RRA 98 Section 1203 and why does it matter on the assessment?

Section 1203 of the IRS Restructuring and Reform Act of 1998 lists ten categories of employee misconduct — the so-called '10 deadly sins' — that mandate removal absent extraordinary mitigation. Situational judgment items frequently test whether a TCO recognizes these acts (including UNAX, falsifying records, and willful failure to file).