- ➻ by Bryan Kesler, CPA
ABOUT THE AUTHOR:
Bryan Kesler, CPA is a CPA Practice Advisor Top 20 Under 40, Licensed Certified Public Accountant, and founder of Kesler CPA Review, Community and Mentorship Platform.
- ✎ Updated
- 🕑 12 min read
TCP is the discipline built for tax people. If you're going into public accounting tax, private industry tax departments, estate and trust planning, or tax advisory, TCP is the obvious discipline choice.
Think of it as "REG 2.0." Where REG tests your ability to calculate taxes and apply rules, TCP tests your ability to plan, strategize, and advise. The shift from compliance to planning is the key difference.
The good news: if you did well on REG, you have a massive head start. The underlying tax knowledge transfers directly. The difference is the question style. TCP asks "what should this taxpayer do?" not "what is this taxpayer's tax liability?"
When I work with CPA candidates through my Kesler CPA mentorship program, most tax-track students gravitate toward TCP, and for good reason. The planning skills you develop studying for TCP are the same skills you'll use every day as a tax advisor.
This guide covers what's tested, how the 2026 OBBBA changes affect your prep, how long to study, the best study order, which courses handle TCP content best, and the mistakes that trip candidates up.
What's In This Guide
The One Big Beautiful Bill Act (OBBBA) was signed into law and introduces significant tax changes. The AICPA announced that OBBBA provisions with effective dates in 2024 and 2025 will become eligible for testing on the TCP section starting July 1, 2026.
If you are sitting for TCP in the second half of 2026 or later, your study materials need to cover OBBBA provisions. This includes individual rate changes, SALT deduction cap modifications, business deduction changes, and estate tax threshold adjustments. Check with your CPA review course for updated content, and verify the AICPA's published testing window before you sit.
What Is the TCP Discipline?
TCP stands for Tax Compliance and Planning. It's one of three discipline sections introduced under CPA Evolution in January 2024, alongside BAR (Business Analysis and Reporting) and ISC (Information Systems and Controls). Every CPA candidate passes three Core sections (FAR, AUD, REG) and then chooses and passes one Discipline section.
TCP tests advanced tax compliance, tax planning strategies, and advisory skills for individuals, entities, and exempt organizations. It takes your REG knowledge and applies it at a higher level. REG taught you the rules. TCP tests whether you can use those rules to minimize tax liability, plan transactions, and advise clients.
TCP was created because the CPA profession needs tax practitioners who can do more than prepare returns. Planning and advisory are where the profession is growing, and where the higher salaries live.
| Feature | TCP Details |
|---|---|
| Full Name | Tax Compliance and Planning |
| Type | Discipline (choose 1 of 3) |
| Exam Length | 4 hours |
| MCQs | 68 (34 per testlet) |
| Task-Based Simulations | 7 (2 | 3 | 2 per testlet) |
| MCQ / TBS Weight | 50% / 50% |
| Content Areas | 4 |
| Passing Score | 75 (on 0-99 scale) |
| Testing Availability | Quarterly windows only (Jan, Apr, Jul, Oct) |
| Extends | REG (Core) |
Career paths TCP supports: public accounting tax practice (Big 4, mid-tier, regional, local), private industry tax departments, estate and trust planning, tax advisory and consulting, personal financial planning with tax focus, and nonprofit/exempt organization tax compliance.
What Does TCP Test? (AICPA Blueprint Breakdown)
The AICPA Blueprints break TCP into four content areas. The critical shift from REG: TCP questions are scenario-based and advisory-oriented. Instead of "calculate the partner's basis," you'll see "which entity structure minimizes total tax for this client given these facts?" or "what tax planning strategies should this couple implement before year-end?"
This is the largest-weighted area alongside entity tax. It covers:
- Advanced individual income tax calculations and compliance
- Alternative minimum tax (AMT) planning and computation
- Estate and gift tax planning: unified credit, annual exclusion, generation-skipping transfers, estate tax deductions
- Retirement planning: qualified plans, IRAs, Roth conversions, distribution rules, early withdrawal penalties, required minimum distributions
- Education incentives: 529 plans, Coverdell ESAs, education credits
- Personal financial planning concepts: risk management, investment considerations, insurance
- Income shifting and timing strategies
- Charitable giving strategies for individuals
Study note: Estate and gift tax planning deserves the most time within this area. Many candidates barely covered estate tax on REG (it's lower-weighted there) and underestimate how deeply TCP tests it. Unified credit amounts, gift-splitting, generation-skipping transfer tax, and estate planning strategies like A-B trusts, GRATs, CRTs, and FLPs are all fair game.
This area goes well beyond what REG covers. Expect:
- Advanced partnership taxation: special allocations, Sec 704(b), substantial economic effect, partnership anti-abuse rules, Sec 754 elections for basis adjustments, hot assets under Sec 751
- S-corporation advanced topics: built-in gains tax, passive investment income tax, S-corp election and termination, reasonable compensation issues
- C-corporation advanced planning: accumulated earnings tax, personal holding company tax, corporate alternative minimum considerations, dividend strategies
- Entity selection and formation planning: choosing between entity types for tax efficiency, conversion between entities
- Multi-jurisdictional tax considerations
Study note: Entity taxation at TCP level is harder than REG level. Partnership special allocations and anti-abuse rules go beyond standard basis calculations. The key question shifts from "what's the basis?" to "which entity structure produces the best tax outcome and why?"
- Entity tax planning strategies
- Choice of entity considerations
- Compensation strategies and retirement plans
- Multi-jurisdictional tax planning
Study note: Build a comparison table of C-corp vs. S-corp vs. partnership vs. LLC for formation, taxation, distributions, owner limitations, self-employment tax, and exit strategies. TCP will ask "which entity is best for this client?" and you need a framework to answer quickly.
- Advanced property transactions: Sec 1031 like-kind exchanges with planning focus, installment sales and planning opportunities, related-party transactions, Sec 1202 qualified small business stock exclusion, opportunity zones
- Exempt organizations: 501(c)(3) requirements, application process, unrelated business income tax (UBIT), private foundation rules vs. public charity classification, intermediate sanctions, reporting requirements
Study note: Exempt organizations are routinely skipped by candidates. 501(c)(3) requirements, UBIT, and private foundation rules are testable and show up more often than people expect. Don't leave these points on the table.
Source: AICPA CPA Exam Blueprints (2026), UWorld TCP Guide.
TCP vs BAR vs ISC: Which Discipline Should You Choose?
TCP is the natural and obvious choice for tax-track candidates. If you're going into any of the career paths listed above, don't overthink it.
| Factor | TCP | BAR | ISC |
|---|---|---|---|
| Best For | Tax practice, estate planning, tax advisory | General audit, financial reporting, advisory | IT audit, SOC reporting, cybersecurity |
| Extends | REG (Core) | FAR (Core) | AUD (Core) |
| MCQs / TBS | 68 / 7 | 50 / 7 | 82 / 6 |
| MCQ Weight | 50% | 50% | 60% |
| Study After | REG | FAR | AUD |
| Question Style | Planning & advisory scenarios | Analysis & data interpretation | IT controls & security concepts |
If you're unsure between TCP and BAR: BAR is the safer "general purpose" choice. TCP is the better choice if tax is definitely your career path, even if you're only 70% sure. The tax planning skills are more specialized and harder to develop on your own later.
Employer guidance: most tax practices prefer or require TCP. Ask your employer or target employer before choosing. If they don't have a preference and you're in tax, choose TCP.
You can change your discipline later by retaking the discipline exam, but your CPA credential doesn't designate which discipline you passed. Choose based on your 5-year career trajectory, not just what seems easiest to pass.
TCP Pass Rate and Difficulty
Historical data for TCP is still limited since the discipline sections launched in January 2024. The AICPA is publishing discipline-specific pass rates gradually, but early data suggests TCP falls in a similar range to the other discipline sections.
Why TCP can be challenging: the shift from compliance to planning catches candidates off guard. You know how to calculate a partner's basis, but do you know when a Sec 754 election makes sense and when it doesn't? That's the TCP difference.
The planning questions require higher-order thinking. Instead of applying a single rule, you're evaluating multiple rules and recommending the best path. This is harder to study for with MCQs alone because the "right" answer depends on the full scenario.
Entity taxation at TCP level is harder than REG level. Partnership special allocations, anti-abuse rules, and advanced S-corp issues go beyond what REG covers. And estate and gift tax planning is a major topic that many candidates underestimate.
Difficulty depends on your background. Candidates with strong REG performance and tax work experience generally find TCP moderate. Candidates without tax work experience find TCP harder because the planning scenarios require practical intuition that comes from real-world tax advisory. If you're in the second camp, budget more study time and focus heavily on building planning frameworks.
See the latest CPA exam pass rates for all sections »
How Long to Study for TCP
General guidance: most candidates budget 300-400 hours total across all four CPA exam sections. TCP typically gets a moderate allocation, less than FAR but comparable to REG.
Estimated Study Hours
With tax background/experience:
First attempt · 4-6 weeks at 10-15 hrs/week
Retake (60+ score) · 3-4 weeks
Without tax experience:
First attempt · 6-10 weeks at 12-18 hrs/week
Retake (60+ score) · 5-7 weeks
Critical timing advice: Take TCP soon after REG. The overlap is massive, and REG knowledge decays fast. Waiting 6+ months between REG and TCP means re-learning entity taxation rules, which can double your TCP study time. Also avoid scheduling TCP study during tax season (January through April) if you work in tax. Summer and fall are better study windows.
Remember: discipline sections are only available during the first month of each quarter. Plan backward from the next available window.
Best Study Order Within TCP
1. Entity tax compliance and planning (30-40%) first. This is the heaviest material and directly extends your REG knowledge. Start with partnership advanced topics (special allocations, 754 elections, hot assets), then S-corp advanced topics (built-in gains, reasonable compensation), then C-corp planning (accumulated earnings, PHC tax). Get the hardest material out of the way while your REG knowledge is freshest.
2. Individual tax planning (30-40%) second. Estate and gift tax planning deserves the most time here. Unified credit, annual exclusion, generation-skipping transfer tax, and estate tax deductions are heavily testable. Retirement planning (qualified plans, IRA rules, Roth conversions, RMDs) is also significant. Income shifting strategies and charitable planning round out this area.
3. Entity tax planning (10-20%) third. Focus on entity selection frameworks and compensation strategies. This builds on the entity tax knowledge you just studied.
4. Property transactions and exempt organizations (10-20%) last. Advanced property transactions (1031 planning, installment sale strategies, QSBS, opportunity zones) and exempt organizations (501(c)(3), UBIT, private foundations). This is the lowest-weighted area but still significant enough to swing your score.
5. Start planning scenario practice by week 3-4. TCP sims will present a client situation and ask you to recommend strategies. You need to practice thinking through multiple angles. Do at least 25-30 TBS before exam day.
Study Strategy for TCP
MCQ volume: aim for 1,000+ MCQs before sitting. TCP has narrower content than REG, but the questions are more scenario-based and multi-layered, so quality of review matters as much as volume.
Leverage your REG notes. Don't re-study entity taxation from scratch. Pull out your REG notes on partnerships, S-corps, and C-corps. Update them with the advanced TCP topics (special allocations, 754 elections, built-in gains tax). Build on the foundation, don't rebuild it.
Estate and gift tax deep dive. Create a comprehensive reference for the unified transfer tax system: unified credit amounts, annual exclusion, gift-splitting, generation-skipping transfer tax, estate tax deductions (marital deduction, charitable deduction), and common planning strategies (A-B trusts, GRATs, CRTs, FLPs). This is a high-value study investment because estate tax is heavily tested on TCP.
Entity selection framework. Build a comparison table of C-corp vs. S-corp vs. partnership vs. LLC across formation, taxation, distributions, owner limitations, self-employment tax, and exit strategies. TCP will ask "which entity is best for this client?" and you need a framework to answer quickly.
Planning vs. compliance mindset shift. When you see a TCP question, don't just calculate the answer. Ask "what could this taxpayer do differently to improve their tax position?" That's the TCP lens. Practice this mental shift on every question.
Retirement planning reference. Create a one-page comparison of qualified plans (defined benefit, defined contribution, 401(k), SEP, SIMPLE), traditional IRA vs. Roth IRA, contribution limits, deduction phase-outs, and distribution rules. This is dense material but highly testable.
OBBBA-specific preparation. If your exam date falls after the AICPA incorporates OBBBA provisions, identify the key changes (individual rate changes, SALT deduction cap modifications, business deduction changes, estate tax threshold adjustments) and study how they affect planning strategies. The planning implications matter more on TCP than the compliance mechanics.
For more detailed strategies, check out my 21 CPA exam study tips and the Kesler Adaptive Study Funnel Plan available through Kesler CPA Review.
Best CPA Review Courses for TCP
TCP content quality varies across courses because it's newer than the Core section material. Evaluate the TCP-specific modules of any course before committing. Look for planning-oriented questions, not just harder REG-style compliance questions labeled as TCP.
Kesler CPA Review TOP PICK FOR TCP
Best for: mentorship, accountability, and the advisory mindset TCP demandsTCP's shift from compliance to planning requires more than just question reps. It requires guidance on how to think like a tax advisor. Kesler's mentorship program is built for exactly this. Mentors help you practice the planning mindset, calibrate your study time between entity, individual, and estate tax topics, and build the reference frameworks that make TCP questions click. Gamification keeps motivation high during the repetitive grind. 8,000+ unique MCQs across all 6 sections. $97/mo makes it the most accessible option and easy to pair with any primary course.
The adaptive A.S.A.P. Technology excels at identifying whether you're weak on individual planning, entity planning, or property transactions and adjusts accordingly. ReadySCORE gives a clear "ready or not" signal, which is valuable for a section with limited historical pass rate data. Surgent's tax content has always been strong. 9,000+ MCQs. Starting at ~$800.
TCP modules benefit from Becker's structured approach and detailed textbook. SkillBuilder videos help with multi-step planning sims. Large question bank (9,200+ MCQs). Newt AI can answer specific tax rule questions during study sessions. Starting at ~$2,399.
Largest question bank (10,000+ MCQs) gives maximum exposure to advanced tax scenarios. Strong on edge cases that other courses miss. Good for candidates who want to see every possible entity taxation question variation. Starting at ~$1,250.
Roger Philipp and Peter Olinto's lecture style helps explain complex planning concepts in plain language. Shorter lectures (15-30 min) work well for TCP's topic structure. 9,000+ MCQs and 500+ TBS. Starting at ~$1,699.
For a full comparison of all courses, visit the Best CPA Review Courses page or browse head-to-head comparisons.
Testing Windows for TCP
Discipline sections (BAR, ISC, TCP) are only available during the first month of each quarter: January, April, July, and October. This is different from Core sections (FAR, AUD, REG), which use continuous testing year-round.
Plan your study schedule backward from the next available window. If you finish studying in February, you're waiting until April. Missing a window means a 3-month delay, and for TCP candidates with the 30-month rolling clock ticking, that delay is dangerous.
TCP-specific timing advice: if you're scheduling REG and TCP close together (which you should), plan REG first with continuous testing, then schedule TCP for the next quarterly discipline window. Example: finish REG in mid-February, study TCP for 4-6 weeks, sit for TCP in the April window.
OBBBA timing: If your TCP exam falls near the window when OBBBA provisions become testable (projected around January 2027), verify with the AICPA which rules apply to your specific exam date. Don't study old law when new law is being tested.
Common Mistakes on TCP
Treating TCP like "REG Part 2." TCP tests planning and advisory, not just harder compliance calculations. If your study materials are just more REG-style MCQs, you're not preparing for the right exam. Look for scenario-based questions that ask "what should this client do?"
Waiting too long after REG. Entity taxation knowledge decays fast. Every month you wait costs you study hours re-learning basis rules, allocation mechanics, and entity selection concepts. Take TCP within 1-2 quarters of passing REG.
Under-studying estate and gift tax. Many candidates barely cover this on REG and assume TCP won't go deeper. It does. Estate tax planning (trusts, credits, deductions, generation-skipping) is a significant part of the individual planning area.
Ignoring exempt organizations. 501(c)(3) requirements, UBIT, and private foundation rules are testable and candidates routinely skip them. This is 10-20% of an area that could swing your score.
Not practicing planning scenarios. TCP sims require you to evaluate a situation and recommend a strategy. If you've only practiced "calculate the tax," you're not ready for "what should this client do?" Start scenario-based TBS practice by week 3-4.
Over-studying individual income tax basics you already mastered on REG. TCP goes deeper on planning strategies, not on the same compliance calculations. Your course analytics will show you where you're weak. Trust the data and spend time where it counts.
Ignoring OBBBA changes when they're testable. If new tax law is on your exam and you studied old law, you'll get tripped up on questions where the rules have changed. Verify the applicable testing window before you sit.
Not building reusable reference frameworks. Tax rules are too numerous to memorize individually. Entity comparison tables, estate tax planning flowcharts, and retirement plan comparison sheets are worth more than re-reading the textbook. Build them, review them weekly, and recreate them from memory.
Frequently Asked Questions About TCP
TCP builds directly on REG and tests at a higher cognitive level, shifting from compliance calculations to planning and advisory. Candidates with strong REG scores and tax work experience generally find TCP moderate. Candidates without tax experience find TCP noticeably harder because the planning scenarios require practical intuition from real-world advisory work. The content is narrower than REG, but the questions demand more judgment.
Yes. Taking TCP soon after REG is the strongest strategic move because the overlap in entity taxation, property transactions, and individual tax knowledge is massive. Waiting 6+ months means re-learning rules you already mastered, which can double your TCP study time. Aim to schedule TCP for the next available quarterly discipline window after passing REG.
The One Big Beautiful Bill Act introduces significant tax changes with provisions effective in 2024 and 2025 becoming eligible for CPA exam testing starting July 1, 2026. TCP candidates sitting after the AICPA incorporates these provisions should study how OBBBA affects planning strategies, including individual rate changes, SALT deduction cap modifications, business deduction changes, and estate tax threshold adjustments. The planning implications matter more on TCP than the raw compliance mechanics. Verify the AICPA's published testing window before you sit.
TCP supports careers in public accounting tax practice (Big 4, mid-tier, regional, local firms), private industry tax departments, estate and trust planning, tax advisory and consulting, personal financial planning with a tax focus, and nonprofit/exempt organization tax compliance. Most tax practices specifically prefer or require TCP when hiring. If your career involves tax in any capacity, TCP is the right discipline.
No, but it helps significantly. Candidates with tax work experience have an intuitive advantage on planning and advisory questions because they've seen real client scenarios. Candidates without tax experience should budget more study time (80-120 hours vs 50-80 hours) and focus heavily on building entity selection frameworks and planning scenario practice. The advisory mindset is trainable, but it takes more reps if you haven't experienced it in practice.
Disclosure: Some of the links in this guide are affiliate links. At no additional cost to you, I may earn a referral fee if you decide to invest in a course listed above. Please only use my links if you feel that I have helped you in your CPA exam journey.
ABOUT THE AUTHOR:
Bryan Kesler, CPA is the founder of Kesler CPA Review & Ultimate CPA Exam Guide which earned him a spot on CPA Practice Advisor's Top 20 Under 40.
He has helped thousands of CPA candidates pass the CPA exam since 2013. You can contact him via email bryan@cpaexamguide.com