This package includes everything that a non-credentialed tax preparer needs for renewal, including the Annual Federal Tax Refresher. The following topics are covered in this package:
- 2021 AFTR (6 Hours Annual Federal Tax Refresher)
- Self Employed Taxes and Dependent Exemptions, Gross Income, Capital Exchanges, and Property Basis (10 Hours Federal Tax Law)
- Ethics for Tax Preparers (2 Hours Ethics)
To kick off, there are three core parts to the 2021 AFTR course.
Domain 1 provides dollar amount and rate inflations for the 2020 tax year with walk-through examples of how to figure some of these related calculations. Due to RP 2019-44 being so lengthy, a good hour of the class is dedicated to those adjustments. Special attention is given to explaining concepts, not just providing the updated numbers; context is essential. A few minor notes relating to the CARES Act have been included, where relevant. The list of tax extenders at the end examines qualifications and limitations for each.
The second domain in the series is the longest of the three because it returns to the basics and ensures students understand key concepts they'll continue to work with. Taxability of earnings starts us out with what constitutes employee compensation. Schedules A through D and supplementary forms, topics, and instructions are all reviewed. Though not intended to be exhaustive, these walk-throughs should serve tax preparers well in navigating any revisions and calculations. Of particular interest will be the changes relating to retirement income limits and the repeal of the alimony deduction. Modern influences of virtual currency and disaster losses find their way into our discussion. Itemized deductions and tax credit eligibility will require a full hour. Then we'll end with an overview of key topics.
Finally, Domain 3 explores warning signs of tax-related identity theft, precautions to mitigate risk, and what to do if a client or tax preparer has suspicions about information abuse. E-file requirements, the purpose and expiration date calculation for ITINs, and the requirements of the Annual Filing Season Program are also covered. Penalties for failure to comply with one's duties as a tax professional are given context.
The next course focuses on various types of "misc" taxes. We first start with the Alternative Minimum Tax and form 6251. The course then moves on to discuss the process of declaring dependents for tax purposes, both minors and other relatives. We wrap up the course by discussing estimated taxes, FICA, and the Affordable Care Act credits.
The following class starts with an explanation of recording and reporting tip income, including how to assist those clients who must report. Investment income is then considered, including the types of debt instruments, the taxable interest on those instruments, and how to report investment income.
The session continues with a topic shift to the sale and exchange of capital assets. In order to understand the taxable portions of those sales and exchanges, the course gives a thorough review of cost basis and how to determine the basis of real property, as well as adjustments to basis. From there, taxable and nontaxable exchanges are addressed and compared. This section encompasses the sale of property, including the exchange of capital assets.
Lastly, reporting the sale of a home is covered to allow practitioners to assist clients with this common exchange. This course closes with an overview of how to report capital gains and losses, including updated capital gain tax rates for 2020.
Finally, the ethics course for tax preparers presents a thorough review of Treasury Department Circular 230. The course opens by establishing a general understanding of both Circular 230 and ethics as a whole. The subsequent topics comprise the bulk of the course, beginning with the ethical duties and best practices outlined in Circular 230. Here, practitioners learn the specific behavior and practices required for an ethical career. Other important topics in our ethics course are penalties for violations, the rules of disciplinary proceedings, and the enforcement of a decision regarding a violation. Overall, this course is a complete review of Circular 230 and the important requirements for practitioner's therein.
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- Approved By: Internal Revenue Service (IRS)
Jeremy Allen, CPA, was born and raised in Chicago, Illinois. He graduated with a Bachelor's of Science in Accounting from the University of Oregon Charles H. Lundquist College Of Business. He has been a licensed CPA in the state of Oregon since 2007. He specializes in Corporate Taxation and Planning. He enjoys working with start-up businesses, online businesses, and multi-state entities. He is an avid member of Crossfit Grants Pass. In his free time he enjoys traveling and camping with his family. Go Ducks!