Hanna is an attorney, but not a CPA Hanna does not have to participate in the Annual Filing Season Program to prepare returns Hanna must take 18 hours of CE from IRS-approved CE providers Hanna must participate in the Annual Filing Season Program to represent taxpayers in audits Hanna must participate in the Annual Filing Season Program to prepare returns
The Correct Answer and Explanation is:
The correct answer is:
Hanna does not have to participate in the Annual Filing Season Program to prepare returns.
Explanation
The IRS regulates tax return preparers in various categories, including attorneys, Certified Public Accountants (CPAs), Enrolled Agents (EAs), and unenrolled preparers. Hanna is an attorney, which places her in a special category of unlimited practice rights.
Attorneys who are in good standing with their state bar are automatically authorized by the IRS to prepare tax returns and represent taxpayers before the IRS without any additional IRS-specific credentials. This includes representation in audits, collections, and appeals.
The Annual Filing Season Program (AFSP) is a voluntary IRS program primarily designed for unenrolled tax return preparers—those who are not attorneys, CPAs, or EAs. The AFSP aims to encourage these preparers to take continuing education (CE) courses and stay current with tax laws. Those who complete the AFSP receive a Record of Completion and are listed in the IRS’s public database of return preparers. However, completion of the AFSP is not required for individuals with professional credentials like attorneys.
Because Hanna is an attorney:
- She is not required to participate in the AFSP to prepare tax returns.
- She is not required to take the 18 hours of CE annually from IRS-approved providers unless she voluntarily wants to complete the AFSP for visibility or marketing purposes.
- She can already represent taxpayers in audits without participating in the AFSP due to her attorney status.
Therefore, statements asserting that Hanna must participate in the AFSP to either prepare returns or represent taxpayers are incorrect. The most accurate statement is that Hanna does not have to participate in the Annual Filing Season Program to prepare returns, because her credentials as an attorney already grant her that authority.
