What is the IRS’s Annual Filing Season Program (AFSP)?

Western CPE Staff

Tax season is a few months away and the field of tax preparation still needs passionate and curious individuals to fill its ranks. If you’re a non-credentialed tax preparer looking for ways to distinguish yourself in a competitive marketplace, the IRS’s Annual Filing Season Program (AFSP) gives you an excellent opportunity to demonstrate your commitment to professional development and tax law expertise.

What even is the annual filing season program

The Annual Filing Season Program is a voluntary program established by the IRS to encourage non-credentialed tax return preparers to pursue continuing education. The program recognizes the efforts of tax professionals who aspire to a higher level of professionalism without credentials such as a CPA license or Enrolled Agent status.

The IRS offers this program to keep non-credentialed tax preparers knowledgeable in their practice without the hassle of accreditation. Completing the AFSP requirements will help you effectively serve your clients and grow your tax preparation business. Upon completion, you’ll receive an Annual Filing Season Program—Record of Completion from the IRS that can help you stand out from competitors.

Who is the AFSP for?

The program is primarily designed for non-credentialed tax return preparers. While attorneys, certified public accountants, enrolled agents, enrolled retirement plan agents, and enrolled actuaries already possess higher-level qualifications and aren’t the intended audience for the program, they can still participate. However, they would need to meet the same continuing education requirements as exempt individuals.

What are the requirements?

Looking to obtain your AFSP Record of Completion? Here’s what you’ll need to do:

Complete 18 hours of continuing education from IRS-approved providers, including:
- A 6-hour Annual Federal Tax Refresher (AFTR) course covering filing season issues and tax law updates
- A knowledge-based comprehension test administered at the end of the AFTR course
- 10 hours of other federal tax law topics
- 2 hours of ethics training
Have or obtain an active Preparer Tax Identification Number (PTIN)
Consent to adhere to specific practice obligations outlined in Circular 230, Subpart B and section 10.51

The IRS has also laid out its CE requirements and deadlines in a handy PDF. Remember that your CE credits must come from IRS-approved providers for them to count toward your AFSP requirements.

Are there exemptions from some requirements?

Yes, certain tax preparers are exempt from taking the 6-hour AFTR course and test, though they still need to complete 15 hours of continuing education (3 hours of federal tax law updates, 10 hours of other federal tax law topics, and 2 hours of ethics). These exempt groups include:

Those who passed the Registered Tax Return Preparer test administered by the IRS between November 2011 and January 2013
Active registrants of state-based preparer programs with testing requirements (Oregon, California, and Maryland)
Tax practitioners who passed the Special Enrollment Exam Part I within the past three calendar years
VITA/TCE volunteers who serve as quality reviewers, instructors, or return preparers with active PTINs
Holders of certain accredited tax-focused credentials (ABA and ATP)

What are the benefits of participating?

Directory Listing and Market Differentiation

Get listed in the IRS’s public Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. This searchable database helps clients find qualified preparers with their preferred credentials. The Record of Completion distinguishes you as being recognized by the IRS. This is extremely marketable to prospective clients who want assurance their tax preparer is up-to-date, and it shows a heightened level of professionalism.

Limited Representation Rights

This is perhaps the most valuable benefit. While not as extensive as the unlimited representation rights of attorneys, CPAs, and enrolled agents, as an AFSP participant, you can represent clients whose returns you prepared and signed before revenue agents, customer service representatives, and similar IRS employees, including the Taxpayer Advocate Service.

In contrast, PTIN holders without an AFSP Record of Completion or other professional credential can only prepare tax returns, leaving the client largely responsible for their own representation. For returns prepared and signed after December 31, 2015, non-AFSP participants are not allowed to represent clients before the IRS at all.

Common Questions About the AFSP:

Is There a Fee to Participate?

The IRS doesn’t charge a fee for participating in the program. However, IRS-approved CE providers will charge fees for their courses.

Is Participation Mandatory?

No, the AFSP is entirely voluntary. Anyone with a valid PTIN can prepare tax returns for compensation, though continuing education is encouraged for all preparers.

How Do I Receive My Record of Completion?

After completing all requirements and renewing your PTIN for the upcoming year, you’ll receive an email from the IRS with instructions for logging into your PTIN account and completing the process, including consenting to the Circular 230 practice requirements. Once completed, you’ll receive your Record of Completion in your online secure mailbox.

What Term Can I Use When Advertising My Qualification?

Participants may use the term “AFSP — Record of Completion” on business cards or in advertisements.

Ready to Elevate Your Career?

The Annual Filing Season Program represents a valuable opportunity for you as a non-credentialed tax return preparer to enhance your knowledge, improve your skills, and demonstrate your commitment to the tax preparation profession. By obtaining your AFSP Record of Completion, you’ll be added to the IRS’s Directory of Federal Tax Return Preparers and gain limited representation rights for clients. Distinguishing yourself in the marketplace through participation in the AFSP is an excellent option for tax preparers looking to expand their industry knowledge and their client base.

Ready to get started? Shop for the CE you need with our vast catalog, and begin your journey toward earning your AFSP Record of Completion. Your clients will thank you!