Business Issues Update and Review

• Prerequisites: None.
• CE Offered:
  • IRS 8 CE Hours (1 Hour Federal Tax Law Update, 7 Hours Federal Tax Review);
  • NASBA 8 Credit Hours (Field of study – Taxes);
  • CFP 8 Credit Hours (Classroom and Webinars);
  • Wisconsin Insurance 8 Credit Hours;
  • Wisconsin Attorneys 8 CLE Hours (Approval pending).

Part I Update and Review

• Prerequisites: None.
• CE Offered:
  • IRS 8 CE Hours (1 Hours Federal Tax Law Update, 6 Hours Federal Tax Review, and 1 Hour of Ethics);
  • NASBA 8 Hours (Field of study – 7 credits Taxes and 1 credit of Regulatory Ethics);
  • CFP 8 Credit Hours (Classroom and Webinars);
  • Wisconsin Insurance 8 Credit Hours (includes 1 credit of Ethics);
  • Wisconsin Attorneys 8 CLE Hours (Approval pending).

Part II Update and Review

• Prerequisites: None.
• CE Offered:
  • IRS 8 CE Hours (2 Hours Federal Tax Law Update, 5 Hours Federal Tax Review, and 1 Hour of Ethics);
  • NASBA 8 Credit Hours; (Field of study – 7 credits of Taxes and 1 credit of Regulatory Ethics);
  • CFP 8 Credit Hours (Classroom and Webinars);
  • Wisconsin Insurance 8 Hours (includes 1 credit of Ethics);
  • Wisconsin Attorneys 8 CLE Hours (Approval pending).

EA (Enrolled Agents)

An enrolled agent is a person who has earned the privilege of representing taxpayers before the Internal Revenue Service by either passing a three-part comprehensive IRS test covering individual and business tax returns, or through experience as a former IRS employee. Enrolled agent status is the highest credential the IRS awards. Individuals who obtain this elite status must adhere to ethical standards and complete 72 hours of continuing education courses every three years.

Reporting requirements and how to receive your credits.

Any programs you’ve taken from an IRS-approved CE Provider will be reported to the IRS by the Provider. You will be able to view your completed CE credits through your online PTIN account. Back to Basics Income Tax Seminars will report your credits earned to the IRS as long as you provide a current, valid, accurate PTIN number.

1. How many continuing education hours must enrolled agents obtain?(reviewed 7/29/22)
   • Enrolled agents must obtain 72 hours of continuing education every three years. A minimum of 16 hours must be earned per year, two of which must be on ethics. Enrolled agents must use an IRS approved CE provider.
2.  I applied during an enrollment cycle, how many continuing education credits must I complete?(reviewed 7/29/22)
   • If your initial enrollment occurs during an enrollment cycle, you are required to complete 2 hours of qualifying continued education credits per month AND 2 hours of ethics or professional conduct credits per year. When your new enrollment cycle begins, you will be required to satisfy the full 72-hour continuing education credit requirement.
   • Example: If you enroll in year 2 of an enrollment cycle in May, you are required to complete 2 hours of qualifying education credits for each month (May (2), June (2), July (2), August (2)…etc. until the end of the enrollment year(s); in addition to completing 2 hours of ethics or professional conduct credits for each year. Your result would be, 40 hours of CE credits with 4 hours of ethics credits for the enrollment cycle.
3.  I enrolled in year 3 of an enrollment cycle in the month of November and my social security number ends with a five (5). How many CE credits must I complete?(revised 7/29/22)
   • You are required to complete four (4) CE credits for November and December of the 3rd year; of which two (2) must be completed in Ethics courses. Your next renewal cycle you will be required to complete a minimum of 72-hours of continuing education credits which encompasses three (3) calendar years. (Note: a minimum of 16 hours of continuing education credits, of which 2 credits must be on ethics, must be completed during each enrollment year of an enrollment cycle.)
4. I enrolled in year 2 of an enrollment cycle in the month of March and my social security number ends with a seven (4).
   How many CE credits must I complete?(revised 7/29/22)
   • Due to the month and year that you enrolled, you are required to complete 44 CE credits before December 31, 2022. Your next renewal cycle, you will be required to complete a minimum of 72 hours of continuing education credits.
5.  I enrolled in year 1 of an enrollment cycle in the month of January and my social security number ends with a one (1). How many CE credits must I complete?(reviewed 7/29/22)
   • Due to the month and year that you enrolled, you are required to complete 72 CE credits. (Note: a minimum of 16 hours of continuing education credits, of which 2 credits must be on ethics, must be completed during each enrollment year of an enrollment cycle.)
6.  I was unable to complete the minimum continuing education credits required during an enrollment cycle, due to extenuating circumstances.
   • Refer to Section 10.6(i) of Treasury Department Circular 230 to determine if you meet the qualifications to request a waiver of continuing education requirements.
7. What are the recordkeeping requirements for EAs and ERPAs? (revised 10/19/15)
   • Preparers must retain the following records for four years:
     1. The name of the CE Provider organization;
     2. The location of the program;
     3. The title of the program, approval number received for the program, and copy of the program content;
     4. Written outlines, course syllabi, textbook, and/or electronic materials provided or required for the program;
     5. The date(s) attended;
     6. The credit hours claimed;
     7. The name(s) of the instructor(s), discussion leader(s), or speaker(s), if appropriate; and
     8. The certificate of completion and/or signed statement of the hours of attendance obtained from the continuing education provider
8. How does a preparer know that they are taking CE from an IRS-approved provider? (reviewed 7/29/22)
   • They should look at the public listing. Approved providers may also show the “IRS Approved Continuing Education Provider” logo. In addition, all providers are issued a Provider Number from the IRS.
   • Your certificate should also contain a program number PDF.
9. Do I need to send my Certificates of Completion from programs I’ve taken to the IRS? (reviewed 7/29/22)
   • No. Any programs you’ve taken from an IRS-approved CE Provider will be reported to the IRS by the Provider. You will be able to view your completed CE credits through your online PTIN account.
10. How can I ensure that I receive credit for the programs that I take? (reviewed 7/29/22)
    • Follow these steps:
      1. Attend a program from an approved IRS CE Provider.
      2. Give the provider your correctly spelled name and PTIN (PXXXXXXXX).
      3. Double-check that the PTIN you provide matches the PTIN in your welcome letter or online PTIN account.
      4. You can check your online PTIN account to see a display of the CE programs reported to the IRS for you by providers.
11. If I obtain excess hours in ethics and/or federal tax law updates, can those hours be counted toward my federal tax law requirement? (reviewed 7/29/22)
    • Only excess hours in federal tax law updates can be counted toward the federal tax law requirement. Excess hours in ethics and federal tax law cannot be counted toward other categories.
12. Can an identity theft or data security program qualify for continuing education credit? (reviewed 7/29/22)
    • Yes, identity theft and data security programs that meet CE program requirements focusing on enhancing tax professional awareness of protecting client data, including review of Publications 4557 and/or 4524 safeguards, can qualify for continuing education credit in the federal tax law category.
13. How many instructor hours can I earn each year? (reviewed 7/29/22)
    • You may earn a maximum of 6 instructor hours each year.
14. If I instruct a portion of a program or an entire program, can I earn both instructor and student credit hours? (reviewed 7/29/22)
    • If you are the only instructor for a program, you may only earn instructor hours (maximum of 6 credit hours annually).
    • If you instruct a portion of a program and also attend a portion as a student, you may earn both instructor credit and student credit, in certain situations.
      • For example, if you instructed 1 hour of an 8 hour program, you would earn instructor credit for the portion you taught (1 hour of credit per contact hour plus actual preparation time not to exceed 2 credit hours per contact hour) and, if you attended the remaining 7 hours taught by another instructor(s) you would earn 7 student credit hours. However, if you instruct the entire program, you can only receive instructor credit, no student credit, up to the maximum annual credit limit.
15. Do I have to provide my PTIN to continuing education providers? (reviewed 7/29/22)
    • Yes, if you want the information to display in your online PTIN account.
16. Can I take the same program more than once and receive credit? (reviewed 7/29/22)
    • As a general rule, preparers should not repeat a program within the same enrollment cycle, if you’re an enrolled agent, or AFSP program year. However, we do understand that a preparer may have a reason to take a program again if they feel they need a refresher on the subject matter.
17. Can an EA take an Annual Federal Tax Refresher (AFTR) course and earn CE credit towards Annual Filing Season Program (AFSP) requirements and/or their EA credentials? (reviewed 7/29/22)
    • No. Due to the high level of knowledge required of Enrolled Agents (EAs), this basic level “refresher” course will not be allowed for IRS credit.
    • Note: If an EA voluntarily takes an AFTR course (for no IRS credit), it may show in the CE history in their PTIN account, but it will not count towards either AFSP or EA CE requirement calculations.
18. How do you determine the year that credit is given for a completed program/course? (reviewed 7/29/22)
    • Programs/courses must be completed by midnight local time of the student on December 31 to count for credit in the current calendar year.
    •  

Requirements Chart for Enrolled Agent Renewal

CPA (Certified Public Accountants)

Continuing Professional Education (CPE) credit is what you earn for completing a learning activity that improves your professional competence. For CPAs, approved CPE programs must meet certain requirements set by the NASBA and the CPA’s State Board of Accountancy. Please check with your state(s) for specific CPE requirements. 

Back to Basics Income Tax Seminars® is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

Sponsor ID # 108520

See https://www.wicpa.org/cpe/requirements for more information.

AFSP (Annual Filing Season Program)

1. What is the Annual Filing Season Program for return preparers?

The Annual Filing Season Program is a voluntary program designed to encourage non-credentialed tax return preparers to participate in continuing education (CE) courses.

Non-credentialed return preparers can elect to voluntarily demonstrate completion of basic 1040 filing season tax preparation and other tax law training through continuing education.

Return preparers who complete the requirements for the Annual Filing Season Program will be issued a Record of Completion that they can display and use to differentiate themselves in the marketplace if desired.

Preparers who participate are also included in a public database on IRS.gov that taxpayers use when searching for qualified tax return preparers. The Directory of Federal Tax Return Preparers with Credentials and Select Qualifications only includes attorneys, certified public accountants (CPAs), enrolled agents, enrolled retirement plan agents (ERPAs), enrolled actuaries, and individuals who have received an Annual Filing Season Program – Record of Completion.

2. Who can participate in the Annual Filing Season Program?

The Annual Filing Season Program is intended to recognize and encourage the voluntary efforts of non-credentialed tax return preparers to increase their knowledge and improve their filing season competency through continuing education. The program is not directed at or necessary for credentialed preparers such as attorneys, CPAs, enrolled agents, enrolled retirement plan agents or enrolled actuaries. They are already in possession of higher level qualifications.

3. What are the requirements for obtaining an Annual Filing Season Program – Record of Completion? (updated September 15, 2022)

In general, to obtain an Annual Filing Season Program – Record of Completion a return preparer must obtain 18 hours of continuing education from an IRS-approved CE Provider. The hours must include a 6 credit hour Annual Federal Tax Refresher course (AFTR) that covers filing season issues and tax law updates. The AFTR course must include a knowledge-based comprehension test administered at the conclusion of the course by the CE Provider. Unenrolled preparers who have passed recognized state or national tests qualify for an exemption from the AFTR course but still must obtain 15 hours of continuing education.

In addition to completing the appropriate CE courses, the return preparer must also renew his or her preparer tax identification number (PTIN) for the upcoming year and consent to adhere to the obligations in Circular 230, Subpart B and section 10.51.

Note: See question 7 below for more information about exemptions and see question 24 below for information about eligibility restrictions.

4. Is there a fee to obtain an Annual Filing Season Program – Record of Completion?

Just as for all CE courses, each IRS-approved CE provider will determine the course participant fee. However, the IRS does not charge any fee for participating in the program.

5. Do I need to notify the IRS once I have completed the Annual Filing Season Program’s Continuing Education requirements?

No, following the completion of all Continuing Education requirements and renewal of PTIN for the upcoming year, eligible return preparers will receive an email from the IRS. The email will provide instructions for logging into your PTIN account and completing the process. Among the final steps will be a required consent to adhere to specific practice obligations outlined in Subpart B and section 10.51 of Treasury Department Circular No. 230. Following successful completion of these steps, you will be issued an Annual Filing Season Program – Record of Completion.

Please note that it may take up to four weeks following the completion of all requirements for return preparers to receive a Record of Completion and be placed on the Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. Additionally, you will not be issued a Record of Completion until your PTIN is renewed for the upcoming tax year.

6. How can I ensure that I receive credit for the continuing education courses that I take?

Follow these steps:

• Attend a continuing education course from an approved IRS CE Provider.

• Give the provider your correctly spelled name and PTIN (PXXXXXXXX).

• Double-check that the PTIN you provide matches the PTIN in your welcome letter or online PTIN account.

You can check your online PTIN account to see a display of the CE courses reported to the IRS for you by providers.

7. Who is exempt from taking the AFTR course?

Some unenrolled preparers are exempt from the AFTR course requirement because of their completion of other recognized state or national competency tests. These exempt groups are still required to meet other program requirements, including 15 CE credits (10 Federal Tax Law, 3 Federal Tax Law Updates, and 2 Ethics).

Return preparers who can obtain the AFTR – Record of Completion without taking the AFTR course are:

• Anyone who passed the Registered Tax Return Preparer test administered by the IRS between November 2011 and January 2013

• Established state-based return preparer program participants currently with testing requirements: Return preparers who are active registrants of the Oregon Board of Tax Practitioners, California Tax Education Council, and/or Maryland State Board of Individual Tax Preparers.

• SEE Part I Test-Passers: Tax practitioners who have passed the Special Enrollment Exam Part I within the past two years

• VITA volunteers: Quality reviewers and instructors with active PTINs

• Other accredited tax-focused credential-holders: The Accreditation Council for Accountancy and Taxation’s Accredited Business Accountant/Advisor (ABA) and Accredited Tax Preparer (ATP) programs

8. How do I obtain an Annual Filing Season Program – Record of Completion if I am exempt from the AFTR course?

Those who are exempted from the AFTR course must meet the alternative requirements (15 hours of IRS-approved CE, consent to Circular 230 practice requirements, and a valid PTIN for the upcoming filing season) in order to receive an AFSP Record of Completion. Once all requirements are met, the exempted return preparer will be issued a Record of Completion.

A return preparer will not be required to notify the IRS of an exemption. The IRS obtains information about exemptions directly from the testing source (e.g. Oregon Board of Tax Practitioners).

9. How and when will I get my Record of Completion? (updated September 15, 2022)

Once a return preparer has completed their CE requirements and renewed their PTIN for the upcoming year, they will receive an email from Taxpros@ptin.irs.gov with instructions on how to consent to the Circular 230 practice requirements and receive their certificate in their online secure mailbox.

Tax return preparers without an online PTIN account will receive a letter with instructions for completing the application process and obtaining their certificates.

10. Are credentialed preparers precluded from participating in the AFSP?

No, as indicated above, this program is not designed, directed or intended for credentialed preparers who already possess a much higher level of qualification. However, if a credentialed preparer seeks to participate in the program, a credentialed preparer would be required to meet the same requirements as those preparers in the exempt category.

11. Can an EA take an AFTR course and earn CE credit towards AFSP requirements and/or their EA credentials? 

No. Due to the high level of knowledge required of Enrolled Agents (EAs), this basic level “refresher” course is not allowed for IRS credit.

Note: If an EA voluntarily takes an AFTR course (for no IRS credit), it may show in the CE history in their PTIN account, but it will not count towards either AFSP or EA CE requirement calculations.

12. What if a preparer has more federal tax update credits than is required for the federal tax law update category in any one calendar year?

The excess federal tax update credit will count toward their federal tax law requirement for that particular calendar year. The PTIN system will automatically apply the excess credit hours to the federal tax law category, although the excess will still show in the PTIN holder’s Federal Tax Update category in the preparer’s online account.

13. Will I still be able to represent clients before the IRS if I don’t participate in the Annual Filing Season Program?

Yes, as a PTIN holder you will continue to have limited representation rights before limited offices of the IRS with respect to clients whose returns you prepare and sign until December 31, 2015. However, beginning in 2016 only AFSP participants who obtain a Record of Completion will have those limited representation rights before the IRS for clients whose returns they prepared and signed after December 31, 2015. PTIN holders without an AFSP – Record of Completion or without other professional credentials will not be able to represent clients before the IRS in any matters for returns prepared and signed after December 31, 2015.

Attorneys, CPAs, and enrolled agents will continue to have unlimited representation rights and can represent clients before any office of the IRS.

14. I am a non-1040 preparer. Do the limited representation restrictions discussed in the previous FAQ apply to me as well?

Yes. Both 1040 and non-1040 preparers will need a Record of Completion for returns completed after December 31, 2015 to engage in limited practice.

15. Are preparers who participate in the Annual Filing Season Program subject to Circular 230 regulations?

To participate in the AFSP, non-credentialed preparers must agree to adhere to the practice requirements for tax practitioners outlined in Subpart B and section 10.51 of Treasury Department Circular No. 230.

Any return preparer who represents a taxpayer before the IRS is subject to Circular 230.

16. Why did the IRS launch this voluntary program? Why not wait to see if Congress passes legislation regarding return preparer oversight?

The IRS believes in a mandatory competency standard for federal tax return preparers. To this end, legislation continues to be our priority. In the interim, however, this program recognizes the efforts of unenrolled return preparers to improve their professional competency through continuing education. Anyone with a PTIN can prepare a federal tax return, but for those preparers with a PTIN who also work to ready themselves for the filing season through educational efforts, the program affords them a level of differentiation from the rest of the marketplace.

17. Do return preparers have to participate in the Annual Filing Season Program?

No, it is a voluntary program. Anyone with a preparer tax identification number (PTIN) can prepare tax returns for compensation, but continuing education is encouraged for all tax return preparers.

18. Will the AFSP – Record of Completion indicate the filing season for which it was issued?

Yes, each Record of Completion will clearly indicate the filing season for which it is valid (e.g., “Annual Filing Season Program – Record of Completion for Filing Season 2015”

19. What term can preparers use on business cards or when advertising their qualifications?

A preparer may use the term “AFSP – Record of Completion”.

20. Is there a limit on the number of years a preparer who passed the RTRP test gets an exemption from the AFTR course and test?

No. Those who passed the RTRP test will be exempt from the AFTR course as long as the program is in place.

CFP (CERTIFIED FINANCIAL PLANNER™)

Certified Financial Planner professionals are required to complete 30 hours of continuing education (CE) each reporting period: 2 hours of CFP Board approved Ethics CE and 28 hours of CE covering 1 or more of CFP Board’s Principal Topics. The CE requirement is effective immediately upon initial certification, or 12 months after successful completion of the CFP® examination if the Experience and/or Degree requirements have not been met.

CE hours must be earned during the CFP® professional’s current reporting period. Any CE hours in excess of the requirement may not be applied to subsequent reporting periods.

WISCONSIN INSURANCE AGENTS 

Each resident intermediary licensed in any of the major lines or grandfathered limited line of authority shall biennially complete 24 credit hours of continuing education approved by the Office of the Commissioner of Insurance (OCI), a minimum of 3 of the 24 credit hours must cover ethics in insurance.

A resident intermediary holding only a limited line license does not need to complete continuing education requirements.