Key Takeaways
- AFSP participants have limited representation rights for returns they prepared.
- AFSP requires 18 hours CE including 6-hour AFTR course with test.
- Limited rights: Can represent before revenue agents, customer service, and Taxpayer Advocate.
- Cannot represent in collections, appeals, or for returns not prepared.
- Unenrolled preparers without AFSP have NO representation rights.
- AFSP is voluntary—no requirement for non-credentialed preparers.
Limited Practice Rights: AFSP and Unenrolled Preparers
Why This Matters for the Exam
The AFSP creates a middle category: preparers with some representation rights but not full authority. The exam tests the specific AFSP requirements, what rights it grants, and its limitations.
Expect at least 3-4 questions on AFSP and unenrolled preparer rights.
Annual Filing Season Program (AFSP) Overview
The AFSP is a voluntary IRS program that gives non-credentialed preparers limited representation rights.
| AFSP Feature | Detail |
|---|---|
| Status | Voluntary |
| Who it's for | Non-credentialed tax preparers |
| Result | Record of Completion + limited representation |
| Annual | Must complete each year |
AFSP Requirements (Tax Year 2024)
| Requirement | Hours/Details |
|---|---|
| Total CE | 18 hours |
| AFTR Course | 6 hours (with comprehension test) |
| Federal Tax Law | 10 hours |
| Ethics | 2 hours |
| PTIN | Valid, active PTIN required |
| Consent | Consent to Circular 230 Subpart B |
The Annual Filing Season Tax Refresher (AFTR)
The AFTR is a 6-hour course covering current year tax law changes, with a comprehension test at the end.
| AFTR Details | Information |
|---|---|
| Length | 6 hours minimum |
| Test | Must pass comprehension test |
| Content | Current tax law updates |
| Provider | IRS-approved CE provider |
Limited Representation Rights
AFSP Record of Completion holders have limited representation rights:
| CAN Represent Before | CANNOT Represent Before |
|---|---|
| Revenue agents (audits of returns they prepared) | Appeals |
| Customer service representatives | Collection |
| Taxpayer Advocate Service | Any return they did not prepare |
| Penalty abatement |
Key Limitation: AFSP rights apply only to returns the preparer prepared and signed.
Comparison: Full Rights vs. Limited Rights
| Factor | Full Rights (EA/CPA/Attorney) | AFSP Limited Rights |
|---|---|---|
| Audits | Any return | Only returns they prepared |
| Appeals | ✅ Yes | ❌ No |
| Collections | ✅ Yes | ❌ No |
| Any taxpayer | ✅ Yes | ❌ Only their clients |
| CE required | 72 hours/3 years (EA) | 18 hours/year |
Unenrolled Preparers (No AFSP)
Tax preparers who do not complete AFSP have no representation rights whatsoever.
| Unenrolled Preparer (No AFSP) | What They Can Do |
|---|---|
| Prepare returns | Yes (with PTIN) |
| Sign returns | Yes (as paid preparer) |
| Represent clients | ❌ No |
| Accompany client | Yes, as a witness only |
Why AFSP Matters for Preparers
| Benefit | Description |
|---|---|
| Limited representation | Can help clients in audits |
| IRS Directory listing | Listed in public directory |
| Professional credibility | Demonstrates commitment |
| Client retention | Can assist with IRS issues |
Real-World Scenario
Scenario: You're an AFSP participant. You prepared a client's 2023 return. The IRS audits it.
- Can you represent the client? Yes—you can represent them before the revenue agent conducting the audit.
- What if they appeal the audit findings? No—AFSP does not authorize representation in Appeals. The client needs an EA, CPA, or attorney.
- What if a different preparer prepared the return? No—you can only represent for returns you prepared.
On the Exam
Expect 3-4 questions on AFSP, typically:
- Requirements Questions: "How many CE hours are required for AFSP?"
- Scope Questions: "Where CAN AFSP holders represent clients?"
- Limitation Questions: "Where CANNOT AFSP holders represent?"
- Comparison Questions: "What is the difference between AFSP and EA rights?"
The key is to remember: AFSP = 18 hours CE (6 AFTR + 10 tax + 2 ethics). Limited to audits of returns they prepared. No Appeals or Collections.
How many CE hours are required for the AFSP?
AFSP participants CANNOT represent clients before which IRS office?
Can an AFSP holder represent a client for a return they did not prepare?