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WESTERN CPE BLOG

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What is the Annual Federal Tax Refresher Course (AFTR) and Comprehension Test?

If you’re a tax preparer looking to participate in the IRS Annual Filing Season Program (AFSP), one of the key requirements is completing the Annual Federal Tax Refresher (AFTR) course and passing its comprehension test. But what is AFTR and why do you need it to have an AFSP Record of Completion? We’ll break down why AFTR is essential for tax preparers who are interested in or renewing their Record of Completion through the AFSP.

What is the AFTR Course?

The Annual Federal Tax Refresher course is a six-hour educational program designed to update tax preparers on the latest changes to tax law and to make sure that participants have the knowledge to be best prepared to help their clients. For the 2025 filing season, the course follows a structured outline divided into three domains:

  1. New Tax Law/Recent Updates: Covers annual inflation adjustments, standard mileage rates, third-party network transaction reporting, the Direct File Pilot Program, and SECURE 2.0 Act provisions.
  2. General Review: Covers a wide range of topics including filing status, income types, deductions, credits, withholding, and more.
  3. Practices, Procedures and Professional Responsibility: Addresses tax-related identity theft, safeguarding taxpayer data, preparer penalties, due diligence requirements, and e-file procedures.

Each section is essential for providing participants with the knowledge necessary to be effective tax preparers and qualifying for the Record of Completion. The AFTR course is designed and administered by qualified CE providers. The IRS provides participants with a list of CE providers that it has approved on their website.

The AFTR Comprehension Test

Completion of the AFTR course is only the beginning. You must pass a comprehension test that assesses your understanding of the material. This test is administered by one of the CE providers you will choose for taking the AFTR course. CE providers who administer the AFTR test are prohibited from distributing test questions and answers, so pay attention during your AFTR course. Here’s what everyone can reasonably expect about their AFTR test, regardless of their chosen CE provider:

  • It consists of 100 multiple-choice questions, each with four potential answers and only one correct answer.
  • You’ll need to score at least 70% to pass.
  • You’ll have a maximum of 3 continuous hours (180 minutes) to complete the test, with a visible countdown clock that can’t be paused or stopped.
  • Multiple test attempts are permitted, but if you need a third attempt, you’ll receive a different version of the test with at least 50% new questions.

Important Deadlines and Requirements

The AFTR course and test MUST be completed on or before midnight local time of December 31. There are absolutely no exceptions to this deadline.

While the AFTR course can be broken up into multiple sessions, the comprehension test must be given after all parts of the course are completed, and it must be limited to a maximum of three continuous hours for all 100 test questions. Remember, a tax return preparer is required to have a PTIN to receive credit for the AFTR course/test. If you secure a PTIN after taking the course, you can contact your CE provider to report it and request that your record be submitted to the IRS for credit.

Where to Take the Course and Test

IRS-approved Continuing Education (CE) providers are responsible for developing and offering the AFTR course materials and related comprehension tests. These providers can offer AFTR courses from June 1 to December 31 each year.

The AFTR course can be delivered in these formats:

  • Self-study (Online)
  • Live webinars
  • In-person classes

Note that unlike other CE programs, the AFTR course/test must be completed by December 31 of the current calendar year, not one year after purchase. When selecting the AFTR course and test that you want to take, please make sure that you sign up for the one that best fits your schedule. Make sure that you give yourself the space you need to succeed by choosing the CE provider that best fits your needs.

Benefits of Completing the AFTR Course and Test

The six CE credits earned from completing the AFTR course and passing the test count toward the total 18 CE hours required for unenrolled preparers participating in the Annual Filing Season Program, unless otherwise exempt from some hours.

Upon successful completion of all Annual Filing Season Program requirements, you’ll receive a Record of Completion for that filing season (calendar year) for which it is valid (e.g., “2025 Active Year for the 2025 Annual Filing Season Program”). This Record of Completion allows you limited representation rights, meaning you can represent clients whose returns you prepared before the IRS during examinations. You’ll also be added to the IRS’s Directory of Federal Tax Return Preparers, making you’re practice significantly easier to find.

Tips for Success

  1. Start early: Don’t wait until December to begin the course.
  2. Take notes: Keep track of key points from each domain.
  3. Manage your test time: With 100 questions in 180 minutes, you have less than two minutes per question.
  4. Don’t forget to sign Circular 230: After completing the requirements, log into your PTIN account and sign the Circular 230 consent statement to participate and receive your Annual Filing Season Program – Record of Completion.

The AFTR course and test aren’t just qualifiers for getting your Record of Completion. The course and test are essential to your career growth and the success of your practice. By being prepared for what you can expect from AFTR, you’ll set up to succeed in getting your Record of Completion.

Good luck on your coursework and testing!