AFSP study guide
AFSP · Work through your exam, one topic at a time.
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. Topics on this exam: Continuing education (general) and Federal tax law refresher course with test. The AFSP study guide has 2 sections and about 645 words.
01Continuing Education: Rules, Deadlines, and Recordkeeping
Continuing education requirements are administrative, so questions tend to hinge on precise numbers, deadlines, and definitions rather than judgment. Candidates should be able to state, from memory, the standard CE cycle length, the number of credit hours typically required per cycle, the treatment of ethics hours, and what counts as a "credit hour" (commonly 50 minutes of instruction, with a 10-minute break not counted). Know the difference between carryover (unused credits applied to the next cycle, usually capped) and waivers or extensions (granted for hardship, military service, or disability). Understand that credits must generally come from approved providers and that self-study must include a monitored or proctored assessment to qualify.
339 words, about 2 min02Federal Tax Law Refresher: Structure, Rates, and Retirement Vehicles
A federal tax refresher for financial professionals emphasizes the architecture of the Internal Revenue Code rather than line-by-line return preparation. Candidates should be comfortable with gross income concepts, above-the-line (adjustments) versus below-the-line (itemized) deductions , the standard deduction , and the distinction between marginal and effective tax rates. Know that capital gains and qualified dividends receive preferential treatment, while ordinary income - including most interest and short-term gains - is taxed at ordinary rates. Understand contribution limits and the tax character of contributions: traditional accounts generally provide a current deduction with tax-deferred growth and ordinary-income taxation on distribution, while Roth accounts use after-tax contributions with qualified tax-free withdrawals.
306 words, about 2 min