Annual Filing Season Program Overview
As we approach and work through another tax season, there are a few changes in the tax laws and changes based on inflation that tax preparers need to know to have a successful season and provide exceptional service to their clients.
The Annual Federal Tax Refresher (AFTR) course is a 6-hour course followed by a 3-hour, 100 question exam. The IRS began requiring this course in 2015 as part of the Annual Filing Season Program (AFSP), which is intended to recognize tax return preparers who would like to increase their knowledge and improve their competency through continuing education.
The AFTR course is required for non-exempt tax return preparers who wish to participate in the Annual Filing Season Program. In order for participants to receive the Annual Filing Season Program - Record of Completion, non-exempt preparers must complete this course along with, 2 hours of Ethics and 10 hours of Federal Tax Law courses. All AFSP requirements must be completed prior to midnight on December 31st of each year. In order to see if you are exempt from this course, visit the IRS Publication 5646 - Annual Filing Season Program Participants Continuing Education Requirements.
By completing the AFTR course and earning the AFSP Record of Completion, non-exempt preparers gain limited representation rights for clients whose returns they prepared during an examination by the IRS, as long as they are also a current AFSP participant at the time. Visit: IRS AFSP - Record of Completion requirements to learn more.
The 2023 AFTR course consists of 3 domains:
Domain 1 - New Tax Law/Recent Updates
Domain 2 - General Review
Domain 3 - Practices, Procedures, and Professional Responsibility
Course completion Examination Information:
100 question, multiple-choice examination
3 hour duration
Open book
Must be completed by December 31, 2023.
Upon completion of these requirements, the preparer will be required to sign consent to adhere to the provisions of Circular 230 before receiving the Annual Filing Season Program – Record of Completion from the IRS.
Annual Filing Season Program participants are included in a public database of return preparers on the IRS website. The Directory of Federal Tax Return Preparers with Credentials and Select Qualifications includes the name, city, state, ZIP Code, and credentials of all attorneys, CPAs, enrolled agents, enrolled retirement plan agents and enrolled actuaries with a valid PTIN, as well as all Annual Filing Season Program – Record of Completion holders.
Table of Content
- DOMAIN # 1 OBJECTIVES
- 1.1 Annual inflation and Cost of living adjustments.
- 1.2 New standard mileage rates.
- 1.3 Filing status name change.
- 1.4 Updated digital asset question language and instructions.
- 1.5 Third Party Network Transactions.
- 1.6 Required Mininum Distribution age requirement.
- 1.7 Reduction in excise tax.
- 1.8 Energy Efficient Home Improvement Credit.
- 1.9 Residential Credit Energy Property Credit.
- 1.10 Clean Vehicle Credits.
- Domain # 1 Quiz
- Section summary
- DOMAIN # 2 OBJECTIVES
- 2.1 Taxability of earnings.
- 2.2 Schedule B
- 2.3 Reporting and taxability of retirement income.
- 2.4 IRA
- 2.5 Reporting and taxability of unemployment compensation.
- 2.6 Alimony
- 2.7 - 2.7.1 Schedule C, Profit and Loss from Business
- 2.7.2 - 2.7.7 Schedule C entries.
- 2.8 Schedule D
- 2.9 Standard Deduction
- 2.10 Schedule A - Itemized Deduction
- 2.10.1 Medical and dental expenses
- 2.10.2 State and local tax deduction
- 2.10.3 Home mortgage interest and home equity loans
- 2.10.4 Charitable contributions
- 2.10.5 Federally declared disaster area casualty loss deduction
- 2.10.6 Moving
- 2.10.7 Record keeping and documentation of deductions
- 2.11 Tax credit eligibility
- 2.12 Overview topics
- 2.12.1 Tax treatment of the acquisition and disposition of digital assets.
- 2.12.2 Alternative Minimum Tax
- 2.12.3 QBI Deduction
- 2.12.4 Kiddie Tax
- 2.12.5 Section 529 Plans
- 2.12.6 Achieving a Better Life Experience (ABLE) account
- 2.12.7 Cancellation of student debts.
- 2.12.8 Net operating loss.
- 2.12.9 Premium Tax Credit
- 2.12.10 Employee fringe benefits
- 2.12.11 Depreciation of rental property
- 2.13 Withholding and estimated tax payments.
- 2.14 Balance due and refund options.
- 2.15 Tax return due dates and filing for extensions.
- Domain #2 Quiz
- DOMAIN # 3 OBJECTIVES
- 3.1 Tax-related identity theft.
- 3.2 Safeguarding taxpayers data.
- 3.3 Overview and expiration of Individual Taxpayer Identification Number (ITINs)
- 3.4 Preparer penalties
- 3.5 Tax preparation and due diligence.
- 3.6 E-filing requirements.
- 3.7 Annual Filing Season Program Requirements
- 3.7.1 Circular 230.
- 3.7.2 Limited representation
- Domain #3 quiz
- Domain # 3 Summary
