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WESTERN CPE BLOG

Providing the latest tax news, information, and updates for tax and finance professionals

How to Complete the Annual Federal Tax Refresher Course (AFTR) and Comprehension Test

Getting ready for tax season can’t start early enough for tax return preparers, especially for those looking to participate in the IRS’s Annual Filing Season Program. Tax return preparers looking to upgrade their careers with credentials through the IRS Annual Filing Season Program can expect to complete the Annual Federal Tax Refresher Course (AFTR) and the accompanying comprehensive test. If you’re planning to earn or renew your AFSP Record of Completion, here’s your step-by-step guide to navigating this important professional milestone.

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Step 1: Do You Need to Take the AFTR Course?

It’s worth noting that not everyone will need to take the AFTR course. Highly credentialed tax professionals are exempt, including:

  • CPAs, Attorneys, and Enrolled Agents
  • Those who passed the RTRP test (exempt from the AFTR course if the program exists)
  • Tax return preparers who are actively registered by the Oregon Board of Tax Practitioners, California Tax Education Council, and/or Maryland State Board of Individual Tax Preparers
  • Participants you have accreditation from the Accreditation Council for Accountancy and Taxation’s Accredited Business Accountant/Advisor (ABA) and Accredited Tax Preparer (ATP) programs

If you don’t fall into these categories and want to participate in the Annual Filing Season Program, you’ll need to complete the AFTR course and pass its test.

Step 2: Choosing Your IRS-Approved CE Provider

The IRS does not directly offer the AFTR course. Instead, you must select from their list of approved Continuing Education providers. These CE providers can offer courses from June 1 through December 31 each year. When selecting a provider, consider what delivery format works best for you:

  • Self-Study (Online)
  • Live Webinar
  • In-Person

Remember that all AFTR courses cover the same required content, so focus on finding a format and provider that matches your learning style and schedule.

Step 3: Be Prepared for What is in the AFTR Course

The AFTR course covers three essential domains:

  1. New Tax Law/Recent Updates: Be ready to learn about annual inflation adjustments, updated mileage rates, third-party network transaction reporting, and provisions from recent legislation.
  2. General Review: This extensive section covers everything from filing statuses and income types to deductions, credits, and capital gains.
  3. Practices, Procedures and Professional Responsibility: You’ll review identity theft prevention, data security, preparer penalties, and e-file requirements.

Before starting the AFTR course, gather any materials you’ll need for notetaking and set aside uninterrupted time to focus on the content. The IRS provides an AFTR Course Outline for what CE providers should cover in each of the above domains. This course outline can also be a resource for participants to research or study what will be offered on the AFTR course ahead of participation.

Step 4: Complete the Six-Hour AFTR Course

The AFTR course is exactly six hours long—no more, no less. However, you don’t have to complete it all at once. Many providers allow you to break it into smaller sessions that fit your schedule.

As you progress through the course:

  • Take detailed notes on each domain
  • Pay special attention to new tax laws and changes
  • Review areas where you feel less confident

Step 5: Taking the AFTR Comprehension Test

After completing all course sections, you’ll need to pass the comprehension test. Here’s what to expect:

  • 100 multiple-choice questions with four options each
  • 3-hour time limit with a visible countdown that cannot be paused
  • 70% minimum passing score (70 correct answers)
  • Questions covering all domains and topics from the AFTR course

If you don’t pass on your first attempt, you can usually try again. However, if you require a third attempt, at least 50% of the questions will be different from your previous tests.

Ready for Success? Here’s a Few Reminders to Keep You on Course:

  • Start early: June 1 is the first day providers can offer the AFTR course—don’t wait until December to take the course and test.
  • December 31 deadline: Both the AFTR course and test must be completed by year’s end. There are no exceptions to this rule.
  • PTIN requirements: You must have a valid PTIN to receive credit. Don’t have a PTIN after taking the course and test? Contact your CE provider to report it and request that your record be submitted to the IRS for credit.
  • CE credits: The six AFTR credits count toward your total Annual Filing Season Program requirements. You’ll still need to complete the full 18 hours of CE credits.
  • Check expiration: Unlike other CE programs, AFTR courses must be completed within the calendar year, not one year from purchase.

Remember, completing the AFTR course and comprehension test is only part of the journey through the Annual Filing Season Program. It will be up to you to take the remaining CE and ensure that you’ve secured a PTIN. If all of this sounds like a lot of work, just remind yourself of the benefits. With completion of the Annual Filing Season Program, you’ll be added to the IRS’s Directory of Federal Tax Return Preparers, and you’ll have limited representation rights for your clients. Huge upgrades to any tax return preparer’s career and your visibility in the marketplace. Now that you’ve got a handle on how to complete the AFTR course and comprehensive test, we wish you the best of luck with your testing! You’re going to do great!