The AFSP is a voluntary IRS program for non-credentialed tax return preparers. It’s not required, but it’s one of the smartest investments you can make in your first year.
What It Requires
18 hours of continuing education annually: 6 hours of the Annual Federal Tax Refresher course (which includes a 100-question comprehension test with a 70% passing score), 10 hours of federal tax law topics, and 2 hours of ethics.
What You Get
A Record of Completion that you can display to clients. Inclusion in the IRS’s online Directory of Federal Tax Return Preparers, which potential clients can search at irs.gov. Limited representation rights before the IRS: you can represent clients before revenue agents and customer service representatives for returns you personally prepared and signed. Non-participating PTIN holders don’t have these representation rights.
What It Costs
The continuing education courses are available through IRS-approved providers, typically for $100 to $200 total. Some providers offer the full 18-hour package as a bundle.
Why You Should Do It
The directory listing is a client acquisition tool. When someone searches the IRS directory for a preparer in their area, AFSP participants show up and non-participants don’t.
The limited representation rights are a meaningful professional upgrade. Being able to speak to the IRS on behalf of your client (for returns you prepared) is something clients value.
The continuing education keeps you current. Tax law changes every year. The AFSP forces you to stay up to date even if your state doesn’t require it.
And if federal licensing requirements are enacted (which is a matter of when, not if), preparers who have been completing the AFSP annually will be positioned to meet the new requirements with minimal disruption.
When to Start
Complete the AFSP before your first filing season. The continuing education counts toward your professional development, the directory listing begins working for you immediately, and the representation rights apply from the moment you receive your Record of Completion.
For training that prepares you for the AFSP and builds the legal compliance foundation every preparer needs, visit musespring.com.