AFSP case studies
AFSP · Put your knowledge to work in context.
The Annual Filing Season Program (AFSP) is an IRS program that recognizes the efforts of non-credentialed return preparers who aspire to a higher level of professionalism. It is aimed at preparers who hold a preparer tax identification number (PTIN) but who are not attorneys, CPAs, or enrolled agents. Participation is voluntary: anyone with a PTIN can prepare returns for compensation, but completing the program earns a Record of Completion, listing in the IRS public directory of preparers, and limited representation rights for clients whose returns the preparer prepared and signed. To participate, a preparer generally obtains 18 hours of continuing education, including a six-hour federal tax law refresher course with a test, renews the PTIN for the upcoming year, and consents to adhere to Circular 230, Subpart B and section 10.51. The AFSP case studies are 5 cases and about 1,823 words.
1Continuing Education Credit for an Online Course
Jordan, a CFP® professional, completed a 2-hour online course titled 'Advanced Estate Planning Strategies' offered by a non-approved provider. The course included a 10-question quiz, and Jordan passed with a score of 80%.
389 words, about 2 min2Federal Tax Treatment of a Life Insurance Policy Transfer
Maria, age 65, owns a life insurance policy on her own life with a death benefit of 500,000 and a cash surrender value of 80,000. She has paid 60,000 in premiums over the years.
367 words, about 2 min3Continuing Education Ethics Requirement and Reporting
Alex, a CFP® professional, is in the second year of his biennial CE cycle, which ends on June 30, 2025. He has completed 20 hours of CE, including 1 hour of Ethics.
373 words, about 2 min4Taxation of a Stock Redemption in a Closely Held Business
David owns 60% of XYZ Inc., a C corporation. His basis in the stock is 100,000.
305 words, about 2 min5Continuing Education Credit for Teaching and Publishing
Sarah, a CFP® professional, needs 10 more CE hours to meet her 30-hour requirement by December 31, 2024. She has already completed 20 hours, including 2 hours of Ethics.
389 words, about 2 min