3. Credentials and Compliance
TAX-103 · Lesson 3

Who can do what

⭐ 0 XP
Briefing · 1 min

Know your credentials.

What Dana said

PTIN = the starting lineEveryone paid to prepare returns needs one.
Unlimited rightsAttorneys, CPAs and Enrolled Agents (EAs) can represent any client before the IRS.
AFSP = limited rightsA yearly IRS program with CE and a refresher test. Lets you represent clients whose returns you prepared.
Every yearRenew your PTIN before December 31, finish your CE, check your state rules.
D
Today you help the team sort out who is allowed to do what.
9:00 AM · Team meeting

How much can each person do before the IRS?

Tap the right level for each person.

…
Unlimitedany client, any matter
    Limitedreturns they prepared
      Noneprepare only
        11:00 AM · Career talk

        James wants to talk to the IRS for his clients.

        J
        "I have a PTIN. What's the fastest way to get some representation rights?"
        December · Checklist

        Get ready for next season.

        Tap the 3 things to do before the season starts.

        3:00 PM · Curveball

        A client needs help with an audit.

        R
        "Can you call the IRS about my 2022 audit?" (You are in the AFSP. You did not prepare that return.)
        Jazzy

        Shift complete!

        🏅 Credential Ready · 0 XP
        • Tell EAs, CPAs and attorneys apart
        • Explain what the AFSP gives you
        • Plan your yearly renewals
        • Know when to refer a client
        Next →

        Lesson notes

        Want the details? Tap a card to open it.

        What you will learn
        • The difference between credentialed and non-credentialed preparers
        • The IRS Annual Filing Season Program (AFSP)
        • Continuing education and representation rights
        Credentials in the industry
        • Attorneys and CPAs: licensed by their states; unlimited representation rights before the IRS.
        • Enrolled Agents (EAs): licensed by the IRS after passing the Special Enrollment Examination; unlimited representation rights.
        • Non-credentialed preparers: must have a PTIN; limited representation rights only if they participate in the AFSP.
        Annual Filing Season Program

        The AFSP is a voluntary IRS program for non-credentialed preparers. Participants complete continuing education each year (including an annual federal tax refresher course with a test), renew their PTIN and agree to the practice obligations. They receive a Record of Completion and are listed in the IRS directory of preparers.

        Staying compliant every year
        • Renew your PTIN before December 31 for the next filing season.
        • Complete continuing education if you participate in the AFSP or hold an EA credential.
        • Keep your EFIN application and office information current.
        • Follow state rules; some states license or register tax preparers separately.
        Key terms
        • AFSP: Annual Filing Season Program, voluntary IRS program for non-credentialed preparers
        • Enrolled Agent: Preparer licensed by the IRS with unlimited representation rights
        • CE: Continuing education hours required to keep certain credentials
        Practice example (fictional)

        James has a PTIN and wants to be able to talk to the IRS on behalf of clients whose returns he prepared. What can he do? He can join the AFSP to gain limited representation rights, or study for the Enrolled Agent exam for full rights.

        Official sources
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