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CPA TCP Exam: How to Pass the CPA TCP Discipline Section

CPA TCP Exam: How to Pass the CPA TCP Discipline Section

The TCP CPA exam was one of three new CPA Discipline sections added to the US CPA Exam in 2024. Following the implementation of the CPA Evolution, passing the CPA Exam now involves passing three Core CPA sections and one of three Discipline sections. Candidates can take the Tax Compliance and Planning (TCP) exam or two others to fulfill the CPA Discipline requirement.

Therefore, we will go over the format and topics of the TCP portion of the CPA Exam in this post. We will also share some guidance on how to choose between taking the TCP and another CPA Discipline section. Additionally, we have CPA Exam coupons at the end of the post!

What is the ISC CPA Exam?

The CPA Exam now includes Discipline sections in addition to the Core sections that are required of all candidates. Building on the foundations of the Core exams, the CPA Discipline sections help you gain a deeper understanding of accounting topics.

Every applicant must pass the three Core exams (AUD, FAR, and REG). But you only need to choose one of the three Discipline sections—BAR, ISC, and TCP—in order to pass the CPA Exam.

Pass all three Core CPA Exam sections

AUD: Auditing and Attestation
FAR: Financial Accounting and Reporting
REG: Taxation and Regulation

Pass one CPA Discipline section

BAR: Business Analysis and Reporting
ISC: Information Systems and Controls
TCP: Tax Compliance and Planning

TCP Section for CPA Exam: What does it cover?

The TCP exam builds on the topics in the Core REG (Regulation) exam. It basically evaluates your understanding of tax planning, personal financial planning, and U.S. federal tax compliance for individuals as well as business entities.

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Questions on the TCP CPA Exam

If you choose to take the TCP Exam, you will have 4 hours to answer 68 MCQs (multiple-choice questions). In addition, you’ll have to tackle 7 TBSs (task-based simulations, which present realistic scenarios and ask you to solve accounting problems).

The ISC questions are divided among 5 “testlets,” which are short segments of the exam. Here is the breakdown of the content:

Tax Compliance and Planning for Individual and Personal Finance Planning 30% to 40%
Entity Tax Compliance 30% to 40%
Entity Tax Planning 10% to 20%
Property Transactions (disposition of assets) 10% to 20%

Syllabus for the CPA TCP Exam

The TCP syllabus includes a range of topics, from personal financial planning and property transactions to advanced tax compliance. The AICPA has published the following syllabus – the CPA TCP exam could include questions on any of these topic areas.

1. Personal Finance Planning and Tax Compliance

Tax compliance issues: gifting assets, passive loss limitations, incentive compensation, etc.
Tax planning issues: estimated tax payments, tax rates, tax legislation, and accelerating or deferring income and deductions to minimize tax liability
Personal financial planning for individuals: investing, assessment of qualified retirement plans, education funding, risk mitigation via insurance

2. Entity Tax Compliance

Net operating losses
Consolidated tax returns
International tax issues for C corporations
Transactions between owners and entities and owner
Partnership elections and partnership changes
Trusts
Tax-exempt status and tax-exempt organizations

3. Entity Tax Planning

Formation and liquidation of entities
Tax planning (C corporations, S corporations, and partnerships)

4. Property Transactions

Non-taxable dispositions of property
Gains and losses as they relate to the disposition of property
Installment sale transactions
Sale of property to a related party
Nonrecognition of gain or loss

What’s a Passing Score for TCP?

A score of 75 or above is required to pass the TCP CPA Exam, which has a pointing scale from 0 to 99. Of those 99 possible points, half of the weighted score comes from the MCQs, and the other half comes from the task-based simulation (TBS) questions.

What’s more, the AICPA weights the questions according to difficulty. As a result, the more complex questions are worth more points than easier ones, even though the AICPA doesn’t technically use a curve for grading the CPA Exam.

Additionally, because you must respond to several questions in each scenario, you can actually receive half credit on the TBSs! Your final TCP score is totaled on a scale of 0 to 99 once your exam has been evaluated and the weights have been applied.

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Who Should Take the TCP Discipline?

Before you choose which CPA Exam Discipline section to tackle, keep in mind this one important thing: you can practice professionally in any CPA niche, regardless of the discipline section you select. In other words, try not to overburden yourself with this choice. Instead, select the discipline that interests you and you feel confident in passing – because passing the CPA Exam is what matters most.

Does My Accounting Career Path Require the CPA TCP Exam?

If you already have a tax background, the TCP discipline might be for you. In other words, you might excel in the TCP section if you:

Already have experience in the tax field
Are a recent university graduate (or a current student), and you remember a lot from your advanced tax courses
Feel comfortable with the REG questions, too

CPA TCP Exam Discounts

Check out our list of CPA Exam discounts and codes to find deals on study materials for the CPA TCP exam.

FAQs: TCP CPA Exam

What Is a Passing Score for TCP?

Candidates must receive a score of 75 or more to pass all sections, including TCP, which are scored on a scale of 0 to 99. The MCQs and TBSs account for 50% of the final score.

What Is the Pass Rate for TCP?

Data on student pass rates is only now being gathered and has not yet been released to the public because the CPA Discipline Exams (including the TCP) were only introduced in January 2024. However, only about 50% of students who take a portion for the first time pass the CPA exam. Still, though, candidates who study with a CPA Exam review course have higher chances of passing on their first try.