📘 US CPA – Taxation and Regulation (REG)

Master US Federal Taxation, Business Law and Professional Tax Compliance

Taxation and Regulation (REG) is one of the three compulsory Core sections of the Uniform Certified Public Accountant (US CPA) Examination, developed by the American Institute of Certified Public Accountants (AICPA).

REG focuses on the principles and practical applications of US federal taxation, business laws, tax compliance, property transactions, professional ethics and regulatory responsibilities.

The examination evaluates candidates’ ability to interpret tax regulations, calculate taxable income, determine tax liabilities and apply legal principles to business and individual financial transactions.

REG is particularly relevant to aspiring accounting professionals interested in US taxation, corporate tax compliance, international accounting, tax advisory, business consulting and regulatory compliance.

📚 US CPA – Taxation and Regulation (REG): Course Structure & Syllabus

Taxation and Regulation (REG) is one of the three compulsory Core sections of the Uniform Certified Public Accountant (US CPA) Examination, developed by the American Institute of Certified Public Accountants (AICPA).

The subject focuses on US federal taxation, business laws, tax compliance, property transactions and professional responsibilities, developing essential knowledge of tax regulations and their practical application to individuals and businesses.

Key Topics Covered:

1. Ethics & Federal Tax Procedures: AICPA Code of Professional Conduct, Treasury Circular 230, IRS regulations, taxpayer rights, tax return preparer responsibilities, tax penalties and professional ethics.
2. Business Laws & Regulations: Contract law, agency relationships, business structures, debtor-creditor relationships, secured transactions, bankruptcy and federal business regulations.
3. Federal Taxation of Individuals: Gross income, adjusted gross income (AGI), taxable income, deductions, tax credits, capital gains, filing status and individual income tax calculations.
4. Corporate Taxation: C Corporation taxable income, corporate deductions, tax credits, distributions, shareholder taxation and corporate tax compliance.
5. Partnerships & S Corporation Taxation: Pass-through taxation, allocation of income and losses, partner and shareholder basis, business distributions and entity-level tax reporting.
6. Property Transactions & Depreciation: Tax basis calculations, capital gains and losses, depreciation methods, Section 179 deductions, asset disposals and recognition of taxable gains.
7. Tax Compliance & Entity Reporting: Individual and business tax returns, tax-exempt organisations, federal filing requirements, book-to-tax adjustments and tax reporting procedures.

The REG examination focuses on understanding US federal tax laws, calculating tax liabilities, applying business regulations and interpreting tax compliance requirements, developing essential competencies in taxation, regulatory compliance and professional accounting.

🎓 Eligibility Criteria

The US CPA examination is administered through individual US state boards of accountancy and participating jurisdictions.

Eligibility requirements vary depending on the jurisdiction selected by the candidate.

General Eligibility Considerations:

• Candidates must satisfy the educational requirements of their selected jurisdiction.
• Requirements may include a recognised bachelor’s degree and specified academic credits.
• Certain jurisdictions require prescribed accounting and business coursework.
• International candidates may need an academic credential evaluation.
• Additional identification, residency or administrative requirements may apply.

Candidates holding qualifications such as B.Com, M.Com, CA, ACCA or other recognised accounting credentials may be eligible, depending on the jurisdiction and evaluation of their educational qualifications.

Eligibility to appear for the US CPA examination and eligibility to obtain a CPA licence are separate requirements.

📝 Examination Pattern

REG is a computer-based examination conducted at authorised Prometric testing centres.

Important Examination Guidelines:

• The examination consists of two MCQ testlets containing 36 questions each.
• Three additional testlets contain eight task-based simulations.
• MCQs assess knowledge of taxation, business law and professional regulations.
• Task-based simulations evaluate practical applications through realistic tax and regulatory scenarios.
• Simulations may require tax calculations, preparation of tax return schedules, identification of deductible expenses and application of federal tax rules.
• The examination evaluates technical knowledge, analytical ability and professional judgement.

✅ Passing Criteria

To successfully clear REG, candidates must achieve a minimum scaled score of 75 on a scale of 0–99.

Important Information:

• A score of 75 does not represent 75% correct answers.
• Examination scores are calculated using AICPA’s established scoring methodology.
• MCQs and task-based simulations each contribute 50% to the overall score.
• Candidates receive a Pass or Fail result.
• Candidates who do not pass may retake REG in accordance with applicable examination regulations.

Passing REG satisfies the examination requirement for that section, subject to the selected jurisdiction’s credit-validity rules.

🎯 Learning Objectives

Studying Taxation and Regulation develops the ability to:

• Understand US federal taxation principles and regulatory requirements.
• Calculate individual and corporate taxable income.
• Apply deductions, exemptions and tax credits.
• Determine tax consequences of property transactions.
• Understand partnership, S Corporation and C Corporation taxation.
• Apply US business law principles to commercial transactions.
• Interpret federal tax procedures and compliance obligations.
• Prepare and analyse tax-related calculations and schedules.
• Apply professional ethics and regulatory standards.
• Develop analytical and problem-solving skills in taxation.

🚀 Develop Expertise in US Taxation and Business Regulation

REG establishes a strong foundation in US federal taxation, business law, tax compliance, property transactions and professional ethics.

The subject develops the technical knowledge required to interpret tax regulations, calculate tax liabilities and understand the legal implications of business transactions.

It also provides essential foundational knowledge for more advanced taxation concepts examined in the Tax Compliance and Planning (TCP) Discipline section of the US CPA examination.

Mastering REG develops the taxation expertise, regulatory knowledge and professional judgement essential for the US CPA qualification.

💻 Technical Requirements – Actuators Educational Institute (AEI)

To ensure a smooth and uninterrupted learning experience, students enrolling in courses offered by Actuators Educational Institute (AEI) are required to use devices that meet the minimum technical specifications supported by the AEI Learning Application.

📱 Minimum Device & Operating System Requirements

📌 Important Information for Students

• Students must ensure that their devices meet the above minimum technical requirements before enrolling in a course.
• A stable internet connection is recommended for accessing online lectures, study materials and other digital learning resources.
• Devices running older or unsupported operating systems may experience compatibility issues or may not support the application.

Note: These are the official minimum technical requirements for accessing courses through the Actuators Educational Institute (AEI) Learning Application. Students are advised to verify device compatibility before completing their course enrolment.