Breaking Down Annual Filing Season Program and its Benefits

Non-credentialed tax return preparers are encouraged to join the IRS voluntary program called the Annual Filing Season Program (AFSP) and participate in continuing education (CE) courses.  It will give them the option to voluntarily demonstrate completion of basic 1040 filing season tax preparation and other related tax law training. A Record of Completion is then issued to the return preparers who were able to complete the requirements for the AFSP which can be displayed and is also useful when entering the competitive marketplace.


Four Important Steps To Follow

If you’re one of those non-credentialed tax return preparers who want to participate in the Annual Filing Season Program to obtain a higher level of professionalism, you will need to meet the required four steps:

• Must be able to complete 12 CPE credits which are 2 hours of Ethics Education and 10 hours of Federal Tax Law Topics 
• A 6-hour Annual Federal Tax Refresher course and the test must be completed.
• The IRS Preparer Tax Identification Number (PTIN) must also be renewed by the return preparer.
• Must agree to follow the obligations stated in Circular 230, Subpart B and Section 10.51.

The Importance of Annual Filing Season Program

Client Representation. Participating in AFSP will give you limited representation rights which means you will be able to represent clients when an examination is conducted on the return that you have prepared.

Free Advertisement. Once you participate in AFSP, you will be listed on the IRS Federal Tax Return Preparers Directory including your professional credentials and other important qualifications. 

Increase Credential Exposure. You can market yourself by putting “as seen on IRS.gov” or “AFSP – Record of Completion” to your tax designation as a credentialed preparer.

IRS Certification. A record of completion from the IRS will be given to all AFSP participants who have successfully completed the program. 

Differentiate Yourself. If you’re able to complete the program, you set yourself apart from others and that you are more than qualified to prepare taxes for taxpayers. Your professionalism is therefore demonstrated even more.

Find Out If You Are Exempted from the Annual Federal Tax Refresher Course

If you’re a tax return preparer who was able to successfully complete one of the following national or state tests, you will be exempted from taking the AFTR by undergoing a comprehension test.

• Registered Tax Return Preparers (RTRP)
• Oregon/California and other state-based return preparer testing programs
• Accredited Tax Preparers through Accreditation Council for Accountants/Taxation
• Part 1 of the Special Enrollment Exam uring a 2-year eligibility window
• Successful VITA program reviewers and instructors

• For those Credentialed Tax Professionals or those who passed the requirement to be exempted for the AFTR mentioned above but wants to qualify for the AFSP annually, a 15 hour CE from an IRS Approved Provider must be completed. For Enrolled Agents, no CE credit will be granted to them for completing an AFTR course.

The previously mentioned 15 hours of CE includes the following:

• 3 hours of Federal Tax Updates
• 10 hours of Federal Tax Law Topics
• 2 hours of Ethics Education

Other Important Facts About Annual Filing Season Program

Getting the Record of Completion. Once you completed all the CE requirements and you were able to renew your PTIN for the upcoming year, an email from TaxPro_PTIN@irs.gov will be sent to you containing instructions on how to agree to the Circular 230 practice requirements and obtain their certificate in their online secure mailbox. If you don’t have an online PTIN account, a letter of instructions will be sent to you in order to complete the application process and obtain their certificates.

Taking AFSP Twice a Year is Possible. The preparer may take the program again within the year if they wish to refresh their learnings on the subject matter although the general rule states that preparers should not repeat a program within the same enrollment cycle if you’re an enrolled agent.

Restrictions On Eligibility for AFSP. The Revenue Procedure 2014-42 states that certain individuals may be ineligible to participate in the Annual Filing Season Program. These people include those who are:

• Disbarred, suspended or disqualified from practice before the IRS under Circular 230,
• Convicted felons who are involved in financial and tax matters as well other violation of public trust within 5 years preceding the application date,
• Enjoined from representing persons before the IRS, preparing tax returns, or engaging in other conduct subject to injunction under section 7407,
• People with records on misconduct engagements violating Circular 230 and providing  or participating false or misleading information to the IRS,
• Personal federal tax obligations non-compliant