Annual Filing Season Program eBook

Annual Filing Season Program eBook

CE Credits: 10 Federal Tax Law  ·  6 Annual Federal Tax Refresher (AFTR)  ·  2 Ethics

An intermediate self-study program that earns your AFSP – Record of Completion for the 2027 filing season and gives you limited representation rights before the IRS for your clients. Some general tax preparation knowledge required, fully self-study, at your own pace.

In this course you will learn:

  • How to report capital gains and losses on the sale of stocks, real estate, and other assets
  • How to apply depreciation methods, including Section 179 and bonus depreciation
  • How to complete Schedule C and Schedule E
  • The latest 2026 filing season issues and tax law updates through the AFTR

$199.00

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Description

CE Credits
10 Federal Tax Law  ·  6 Annual Federal Tax Refresher (AFTR)  ·  2 Ethics

The 2026 Annual Filing Season Program (AFSP) helps you earn your AFSP – Record of Completion for the 2027 filing season and gain limited representation rights for your clients. This self-study program covers the full 18-hour requirement: 10 hours of Federal Tax Law, 6 hours of the Annual Federal Tax Refresher (AFTR), and 2 hours of Ethics. Designed for tax preparers who already have general tax preparation knowledge, it walks you through capital gains and losses, depreciation, Schedule C, and Schedule E, plus a dedicated AFTR module covering filing season issues and the latest tax law updates. You finish with a knowledge-based comprehension test and a final exam to lock in your CE credits.

Deadline
Complete your course before midnight (local time) on December 31, 2026 to ensure your hours are reported on time. The 6-hour AFTR portion expires December 31, 2026 — after that date, only the 10 hours of Federal Tax Law and 2 hours of Ethics will be reported per IRS regulations.

What you’ll be able to do

  • Understand your limited representation rights as an AFSP Record of Completion holder
  • Know the penalty amount per refundable credit
  • Recognize the annual inflation adjustments for the standard deduction
  • Report capital gains and losses on the sale of stocks, real estate, and other assets
  • Apply depreciation methods including Section 179 and bonus depreciation
  • Complete Schedule C for self-employed individuals and sole proprietors
  • Complete Schedule E for rental, partnership, S corporation, and trust income
  • Adhere to practice obligations under Subpart B and Section 10.51 of Circular 230

What is a self-study course?

Learn at your own pace
Take as long as you need. No deadlines, no rush — just progress on your schedule. 		Start any time
Enroll today and begin immediately. No waiting for a class to open or a session to start. 		No instructor required
All materials are included. You study independently through readings, lessons, and a final exam.

Course curriculum

AFSP Part I — Federal Tax Law · 10 Hours

  • Ch. 1 — Capital gains and losses. Learn how to report profits and losses from selling stocks, real estate, and other assets, and how tax rates apply.
  • Ch. 2 — Depreciation. Understand how to deduct the cost of business assets over time using methods like Section 179 and bonus depreciation.
  • Ch. 3 — Schedule C. Used for self-employed individuals and sole proprietors to report business income and expenses on their personal return.
  • Ch. 4 — Schedule E. Covers supplemental income from rental properties, partnerships, S corporations, and trusts.
  • Final exam — Federal Tax Law. Test your knowledge across the Federal Tax Law chapters to earn your 10 CE credits for this part.

AFSP Part II — Ethics, Due Diligence and Penalties · 2 Hours

  • Ch. 5 — Ethics, due diligence and penalties. Covers professional standards and due diligence responsibilities tax preparers must follow, including taxpayer penalties and Circular 230 guidelines.
  • Final exam — Ethics. Test your knowledge of ethics, due diligence, and penalties to earn your 2 CE credits for this part.

AFSP Part III — Annual Federal Tax Refresher (AFTR) · 6 Hours

  • Ch. 6 — Annual Federal Tax Refresher. Covers filing season issues and 2026 tax law updates.
  • AFTR comprehension test. Knowledge-based comprehension test administered by the CE Provider to earn your 6 CE credits for this part.

To earn your AFSP – Record of Completion

  1. Take the six (6) hour Annual Federal Tax Refresher (AFTR) course covering filing season issues and tax law updates, plus the knowledge-based comprehension test administered by the CE Provider.
  2. Take ten (10) hours of other federal tax law topics.
  3. Take two (2) hours of ethics.
  4. Have a valid Preparer Tax Identification Number (PTIN).
  5. Consent to adhere to the practice obligations outlined in Subpart B and Section 10.51 of Treasury Department Circular No. 230.

A tax preparer needs a PTIN account to receive instructions from Ta*********@*rs.gov on signing the Circular 230 consent and receiving your certificate in your online secure mailbox. If you don’t have an online PTIN account, you’ll receive a letter with instructions for completing the application and obtaining your certificate.

Course details

Field of study Federal Tax Law — 10 hrs
Behavioral Ethics — 2 hrs
6 Hour AFTR
Total CE credit 18 hours (70% or better required to pass; earns limited representation rights)
Course level Intermediate
Prerequisite General tax preparation knowledge is required
Delivery method Self-study
CE credit deadline December 31, 2026, midnight local time — for all 18 CE credits. The 6-hour AFTR portion expires December 31, 2026; the 10-hour Federal Tax Law and 2-hour Ethics portions can still be completed for credit after that date.
Upon completion Certificate of Completion  ·  AFSP – Record of Completion
IRS credit reporting CE credits reported directly to the IRS for tax preparers with a valid PTIN

This course does not qualify for California Continuing Education hours.

After 12/31/26, only 10 hours of Federal Tax Law and 2 hours of Ethics will be reported per IRS regulations.

Chapters

Chapters

Part I: Ethics and Best Practices

This chapter will explain how to determine who qualifies as a tax return preparer, what representation rights a preparer has, how that individual is bound by the Circular 230 guidelines, and what it means for a tax preparer to behave ethically and responsibly.

Part 2: Federal Tax Law

Income

The IRS has the authority to tax all income from whatever source it is derived. This includes compensation for services, gains from dispositions of property, interest and dividends, rent and royalties, pensions and annuities, gambling winnings, and even illegal activities. All such income a person receives is collectively referred to as “worldwide income.” However, not all money or property is taxable or subject to tax. This chapter will cover the different types of taxable and nontaxable income and show you where and how to report such wages on a professionally prepared tax return. A tax professional must recognize the different kinds of taxable income, tax-exempt income, and other income included in Schedule 1, line 21, and must know how to figure out the taxable percentage on Social Security benefits.

Tax Credits and Payments

A nonrefundable tax credit reduces the amount of tax liability that may have to be paid. Unlike a deduction, which reduces the amount of income that is subject to taxation, a credit directly reduces the tax itself. There are two types of credits: nonrefundable, which cannot reduce tax liability below zero, and refundable, which can reduce tax liability below zero, resulting in the need for a refund.

Other Taxes and Taxpayer Penalties

This chapter provides an overview of miscellaneous taxes from the Form 1040 and reported on Schedule 2 that a taxpayer might be assessed. This includes excess Social Security tax, additional taxes on IRAs, the Alternative Minimum Tax, and household employment taxes.

Business Income

This chapter presents an overview of Schedule C, which includes income and expenses. The income or loss is reported on Form 1040, Schedule 1, line 3. Sole proprietorship is not a legal entity; it refers to a person who owns a business and is personally responsible for its debts. Sole proprietorship is a popular business structure due to the simplicity, ease of setup, and nominal startup costs. Ultimately, a sole proprietor would register the business name with the state and city, obtain local business licenses, and then open for business. A drawback of being a sole proprietor is that the owner is 100% personally liable for the business’s income and/or debt.

Part 3: Annual Federal Tax Refresher

The Annual Federal Tax Refresher (AFTR) course is intended to prepare the individual for the upcoming tax year. This course covers the latest tax law changes and current tax issues, as well as practice and professional responsibility. This course follows the 3 domains that are set annually by the IRS. They include:

  1. New Tax Law/Recent Updates
  2. General Review
  3. Practices, Procedures and Professional Responsibility

Course Details

Course Details

At the end of this section, the student will be able to do the following:

  • Understand limited representation rights.
  • Recognize the annual inflation rates for the standard deduction.
  • Comprehend the difference between business vs hobby.
  • Identify taxpayers who qualify for a federally declared disaster area.

AFSP

AFSP

How do I obtain an AFSP-Record of Completion for Filing Season 2020?

Take a six (6) hour Annual Federal Tax Refresher (AFTR) course that covers filing season issues and tax law updates, as well as a knowledge-based comprehension test administered at the end of the course by the CE Provider.
Take ten (10) hours of other federal tax law topics; and
Take two (2) hours of ethics.
Have a preparer tax identification number (PTIN) for 2020.
Consent to adhere to specific practice obligations outlined in subpart B and section 10.51 of Treasury Department Circular No. 230.

How and when will I get my Record of Completion?

After PTIN renewal season begins in October 2020, a Record of Completion will be generated to you once all requirements have been met, including renewal of your PTIN for 2020 and consent to the Circular 230 obligations.

If you have an online PTIN account, you will receive an email from Ta*********@*rs.gov with instructions on how to sign the Circular 230 consent and receive your certificate in your online secure mailbox.

If you do not have an online PTIN account, you will receive a letter with instructions for completing the application process and obtaining your certificate.

Who is exempt from taking the AFSP course?

 –  Anyone who passed the RTRP test administered by the IRS between November 2011 and January 2013.
–  Established state-based return preparer program participants with testing (Oregon, California, and Maryland).
–  Those who have passed SEE (Special Enrollment Exam) Part 1 within the past 2 years.
–  VITA/TCE volunteers: quality reviewers and instructors with active PTINs.
–  Other accredited tax-focused credential holders such as the following:
The Accreditation Council for Accountancy.
Taxation’s Accredited Business Accountant/Advisor (ABA).
Accredited Tax Preparer (ATP).

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