IRS Training Programs 1 — Questions and Answers
Question 1: What is the purpose of the IRS Annual Filing Season Program (AFSP)?
- To require all tax preparers to take a certification exam
- To encourage voluntary continuing education for non-credentialed tax preparers (Correct answer)
- To mandate that all tax professionals obtain a CPA license
- To replace the Enrolled Agent (EA) designation
Correct answer: To encourage voluntary continuing education for non-credentialed tax preparers
The IRS Annual Filing Season Program (AFSP) was created to recognize and encourage non-credentialed tax preparers to voluntarily enhance their knowledge and professionalism through continuing education. It aims to improve the quality of tax preparation services provided to taxpayers by those who are not Enrolled Agents, CPAs, or attorneys. The program does not mandate certification but offers benefits for participation.
Question 2: How many hours of continuing education are required to complete the IRS Annual Filing Season Program (AFSP)?
- 12 hours
- 18 hours (Correct answer)
- 72 hours
- 24 hours
Correct answer: 18 hours
To complete the IRS Annual Filing Season Program (AFSP), non-credentialed tax preparers are required to complete 18 hours of continuing education annually. These hours must include a 6-hour Annual Federal Tax Refresher (AFTR) course with an exam, 10 hours of federal tax law topics, and 2 hours of ethics. This ensures participants maintain up-to-date knowledge and ethical standards.
Question 3: What does passing the Annual Federal Tax Refresher (AFTR) course exam allow a tax preparer to do?
- Prepare only state tax returns
- Gain limited representation rights for clients whose returns they prepared (Correct answer)
- Represent any taxpayer before the IRS, regardless of preparation status
- Obtain a CPA license
Correct answer: Gain limited representation rights for clients whose returns they prepared
Passing the Annual Federal Tax Refresher (AFTR) course exam is a key component of the Annual Filing Season Program (AFSP). Completing the AFSP, including the AFTR exam, grants non-credentialed tax preparers limited representation rights. This means they can represent clients whose returns they prepared and signed before the IRS, specifically in examinations by the Examination Division, Customer Service, and the Taxpayer Advocate Service.
Question 4: What is a benefit of completing the IRS Certified Annual Filing Season Program (AFSP) for non-credentialed tax preparers?
- Ability to audit financial statements
- Access to tax court representation
- Inclusion in the IRS Directory of Federal Tax Return Preparers (Correct answer)
- Exemption from IRS penalties
Correct answer: Inclusion in the IRS Directory of Federal Tax Return Preparers
A significant benefit for non-credentialed tax preparers who complete the IRS Annual Filing Season Program (AFSP) is their inclusion in the IRS Directory of Federal Tax Return Preparers. This public directory allows taxpayers to easily find preparers who have voluntarily met the IRS's continuing education requirements. Inclusion in the directory enhances a preparer's credibility and visibility, helping them attract clients.
Question 5: Which of the following must be included in an AFSP participant’s continuing education?
- Local tax laws only
- Corporate finance and auditing
- Federal tax law and ethics (Correct answer)
- Estate planning
Correct answer: Federal tax law and ethics
The continuing education requirements for the Annual Filing Season Program (AFSP) are specifically designed to ensure preparers are knowledgeable about federal tax matters and adhere to professional standards. Participants must complete hours in federal tax law topics, including a refresher course, and a dedicated segment on ethics to maintain their AFSP status. This ensures comprehensive and responsible tax preparation.
IRS Training Programs 1
What is the purpose of the IRS Annual Filing Season Program (AFSP)?