2026 Annual Federal Tax Refresher (AFTR)

The six-hour refresher and 100-question comprehension test

CE hours

6

IRS program no.

YFSXX-A-00010-26-S

Delivery

Self-study written (PDF)

Access window

Complete all required reading and pass the test by December 31, 2026, midnight in the student’s local time. AFTR access does not extend the annual completion deadline.

Exam

Online, unproctored comprehension test at exam.mastery.tax: 100 multiple-choice questions, four answer choices and one correct answer per question. A score of at least 70 out of 100 is required to pass. Each attempt has a visible three-hour continuous countdown that cannot be paused. Up to six attempts are allowed. Attempts 1–2 use one version, attempts 3–4 use another, and attempts 5–6 use a third; each successive version changes at least 50% of the questions. A refresh or return to an existing attempt does not reset its timer. The annual completion deadline may end an attempt earlier.

Price

$59

Program description

This is the IRS-mandated six-hour Annual Federal Tax Refresher course, written to the Publication 6079 outline for 2026 and tested under the Publication 6012 test parameters. It carries a non-exempt preparer through the three required domains in the order the IRS specifies: new tax law and inflation-adjusted figures for the filing season, a general review of the individual return from filing status through refundable credits, and the practices, procedures, and professional responsibility standards that govern the preparer's own conduct. The course concludes with the 100-question, three-hour timed comprehension test the IRS requires for AFTR credit, with a 70% passing score. The course and comprehension test must both be successfully completed by December 31, 2026, midnight in the student’s local time, to count toward the 2027 AFSP Record of Completion. Provider reporting is a separate process; it does not extend the student’s completion deadline.

What you'll cover

• New tax law and recent updates for tax year 2026 and the 2027 filing season.
• Domain 2 — general income tax review across income, deductions, credits, and computation
• Domain 3 — preparer practices, procedures, ethics, and e-file requirements

Who it's for

Non-exempt return preparers pursuing the AFSP Record of Completion.

The 2026 AFTR remains in IRS review and is not available for purchase. Email [email protected] for release information. Enrollment buttons currently open our contact page. The course and comprehension test must both be successfully completed by December 31, 2026, midnight in the student’s local time, to count toward the 2027 AFSP Record of Completion. Provider reporting is a separate process; it does not extend the student’s completion deadline. Enrolled agents cannot receive EA CE credit for AFTR.

Enrollment inquiries currently open the Mastery Tax contact page.

Preparer Due Diligence

Form 8867 compliance for EITC, CTC, AOTC, and Head of Household

CE hours

2

IRS program no.

YFSXX-T-00001-26-S

Delivery

Self-study written (PDF)

Access window

12 months from purchase

Exam

Hosted at exam.mastery.tax, 70% to pass

Price

$59

Program description

This two-hour self-study course teaches federal return preparers how to satisfy the four due diligence requirements of Treasury Regulation §1.6695-2 on every return claiming the Earned Income Tax Credit, the Child Tax Credit family (CTC, ACTC, ODC), the American Opportunity Credit, or Head of Household filing status. Participants walk through the line-by-line anatomy of Form 8867, the three submission paths, the five-item recordkeeping rule and its three-year retention clock, credit-by-credit eligibility, the IRS's three published Schedule C scenarios, firm-level compliance program design, and the §6695(g) penalty regime including Letter 1125 and Form 5816. Six embedded review questions reinforce the material and a 10-question final exam validates mastery.

What you'll cover

• Form 8867 line by line, the three submission paths, and the five-item recordkeeping rule
• Credit-by-credit eligibility deep dives plus the IRS's three published Schedule C scenarios
• Firm-level compliance program design under §1.6695-2(c) and the §6695(g) penalty regime

Who it's for

Other Tax Return Preparers (AFSP) and Enrolled Agents with an active PTIN.

Pairs with Surviving a Due Diligence Audit (DD-02) for the full four-hour due diligence track.

The checkout button opens the matching Mastery Tax product page.

Circular 230 Standards of Practice

Duties, restrictions, and best practices

CE hours

2

IRS program no.

YFSXX-E-00004-26-S

Delivery

Self-study written (PDF)

Access window

12 months from purchase

Exam

Hosted at exam.mastery.tax, 70% to pass

Price

$29

Program description

This course covers the standards of practice set out in Treasury Department Circular No. 230, Subparts A and B, as in effect for 2026, together with the overlapping Title 26 preparer penalty provisions that intersect with those duties. Twelve chapters walk through the duty to furnish information under §10.20, diligence as to accuracy under §10.22, the duty to advise clients of errors under §10.21, best practices under §10.33, fee restrictions under §10.27, advertising restrictions under §10.30 including social media, conflicts of interest under §10.29, client records under §10.28, prompt disposition and fiduciary role restrictions under §§10.23 through 10.26, and the written systems that operationalize compliance across a practice. The course closes with a five-question ethical decision framework practitioners can apply to real situations.

What you'll cover

• Practice before the IRS, the duty to furnish information, and diligence as to accuracy
• Fee restrictions, advertising and solicitation rules, conflicts of interest, and client records
• Where Circular 230 duties overlap Title 26 preparer penalties, plus a five-question decision framework

Who it's for

Any PTIN holder who needs the two-hour ethics requirement; no prerequisites.

Two ethics hours satisfy the AFSP ethics requirement for both exempt and non-exempt preparers.

The checkout button opens the matching Mastery Tax product page.

Preparer Penalties and OPR Enforcement

The §6694/§6695 penalty framework and OPR's sanction toolkit

CE hours

2

IRS program no.

YFSXX-E-00005-26-S

Delivery

Self-study written (PDF)

Access window

12 months from purchase

Exam

Hosted at exam.mastery.tax, 70% to pass

Price

$29

Program description

This course examines the two principal enforcement tracks a tax return preparer faces: the Title 26 preparer penalty regime under sections 6694, 6695, 6700, 6701, 6713, and 7216, and the Office of Professional Responsibility's Circular 230 disciplinary process. Twelve chapters walk through why preparer penalties exist, the reasonable basis and substantial authority standards, the willful and reckless standard, the seven assessable penalties under section 6695, promoting abusive tax shelters and aiding and abetting understatement, injunctions under sections 7407 and 7408, the scope of OPR's jurisdiction and its referral sources, OPR's sanction ladder from private reprimand through disbarment, the burden of proof and procedural rights in OPR proceedings, and reinstatement and firm-level risk management. It closes with compliance guidance a practitioner can apply directly to file management and firm policy.

What you'll cover

• Reasonable basis and substantial authority under §6694(a); the willful and reckless standard under §6694(b)
• The seven assessable penalties under §6695, plus §§6700, 6701, 6713, and 7216 exposure
• OPR jurisdiction, referral sources, the sanction ladder, burden of proof, and reinstatement

Who it's for

Preparers and EAs who want the enforcement side of the ethics requirement.

Counts as ethics. Stacks with E-01 for four ethics hours toward the EA three-year cycle.

The checkout button opens the matching Mastery Tax product page.

Surviving a Due Diligence Audit

Response, defense, and firm systems

CE hours

2

IRS program no.

YFSXX-T-00006-26-S

Delivery

Self-study written (PDF)

Access window

12 months from purchase

Exam

Hosted at exam.mastery.tax, 70% to pass

Price

$59

Program description

This course carries the practitioner through both halves of a due diligence penalty case under section 6695(g). Part One, Chapters 1 through 6, is a crisis-response manual covering the anatomy of Letter 1125, the mechanics of completing and submitting Form 5816, the reasonable cause defense and its supporting evidence, the structure of an effective penalty abatement request, the audit-to-Appeals timeline and Fast Track Settlement, and the remediation steps that follow once an audit closes. Part Two, Chapters 7 through 12, turns to firm-level systems: calculating aggregate section 6695(g) exposure across a multi-preparer office, drafting written due diligence procedures that satisfy Treas. Reg. §1.6695-2(b)(3)(ii), building a defensible hiring and PTIN verification process, designing a four-touch file-review protocol, running an in-firm CE-tracking program, and managing the non-compliant preparer through a documented escalation ladder. This is a Federal Tax Law course, not an Ethics course.

What you'll cover

• Anatomy of Letter 1125, completing Form 5816, and structuring a penalty abatement request
• The reasonable cause defense, the audit-to-Appeals timeline, and Fast Track Settlement eligibility
• Aggregate §6695(g) exposure, written procedures under §1.6695-2(b)(3)(ii), and a four-touch file review

Who it's for

Office owners and managers responsible for more than their own files. Familiarity with DD-01 recommended.

Federal Tax Law category, not Ethics — it counts toward the 10-hour AFSP tax law requirement.

The checkout button opens the matching Mastery Tax product page.

The Form 1040 Foundation

A working preparer's guide to the individual return

CE hours

3

IRS program no.

YFSXX-T-00007-26-S

Delivery

Self-study written (PDF)

Access window

12 months from purchase

Exam

Hosted at exam.mastery.tax, 70% to pass

Price

$39

Program description

This course carries the practitioner through the complete individual return in the order a preparer actually works it. Part One, Chapters 1 through 4, covers intake and engagement, filing status determination under IRC section 2, the qualifying child and qualifying relative dependency tests under IRC sections 151 and 152, and reading a client's source documents including the W-2, the 1099 family, the 1098 family, and Schedule K-1. Part Two, Chapters 5 through 9, builds the return itself: income reporting and the Schedule 1, 2, and 3 walkthrough, above-the-line adjustments, the standard versus itemized deduction decision, tax computation methods, and a full identification-level tour of the individual credit landscape. Part Three, Chapters 10 through 12, closes the return: payments and refundable credits reconciliation, e-file mechanics and signature under Form 8879, and the preparer's post-filing responsibilities including the Circular 230 knowledge-of-error obligation.

What you'll cover

• Intake, engagement letters, filing status under IRC §2, and the dependency tests under §§151 and 152
• Reading W-2s, the 1099 and 1098 families, and Schedule K-1; income and the Schedule 1, 2, 3 walkthrough
• Standard vs. itemized, tax computation, the credit landscape, Form 8879, and post-filing duties

Who it's for

New and seasonal preparers, and experienced preparers who want a structured refresher.

Recommended before the Federal Tax Update (U-01).

The checkout button opens the matching Mastery Tax product page.

New Rules, New Return: The Federal Tax Update

OBBBA and the modernized individual return

CE hours

3

IRS program no.

YFSXX-U-00008-26-S

Delivery

Self-study written (PDF)

Access window

12 months from purchase

Exam

Hosted at exam.mastery.tax, 70% to pass

Price

$39

Program description

This course carries the practitioner through the One Big Beautiful Bill Act's individual income tax changes in the order a preparer needs to apply them for the 2026 filing season. Part One, Chapters 1 through 3, covers the legislative background: what OBBBA changed, which provisions reached back retroactively into the 2025 tax year, and how the annual inflation-adjustment process under Rev. Proc. 2025-32 interacts with the new law for 2026. Part Two, Chapters 4 through 8, is the working core: the new standard deduction and bracket structure, SALT cap phase-down mechanics, the new senior deduction under IRC section 151(d)(5), the tip income deduction under IRC section 224, and the overtime pay deduction under IRC section 225. Part Three, Chapters 9 through 12, covers the Child Tax Credit's new permanent structure, 2026 retirement and health savings account contribution limits, the client intake and documentation changes a working office should make, and the software behaviors and override traps that accompany each provision.

What you'll cover

• What OBBBA changed, which provisions reached back into 2025, and how Rev. Proc. 2025-32 interacts with it
• Standard deduction and brackets, SALT phase-down, senior deduction, tip income, and overtime pay
• The CTC's permanent structure, 2026 retirement and HSA limits, and intake changes your office should make

Who it's for

Every preparer filing individual returns for the 2026 season. Form 1040 familiarity recommended.

Federal Tax Update category (U) — this is the 3-hour update requirement for exempt AFSP preparers.

The checkout button opens the matching Mastery Tax product page.

Notice Received: The Preparer's First-Response Playbook

Reading IRS letters, pulling transcripts, and protecting your client

CE hours

2

IRS program no.

YFSXX-T-00009-26-S

Delivery

Self-study written (PDF)

Access window

12 months from purchase

Exam

Hosted at exam.mastery.tax, 70% to pass

Price

$29

Program description

This course carries the practitioner through the complete first-response workflow a preparer needs the moment a client's IRS notice arrives. Chapters 1 through 3 cover notice classification and identity protection: reading a CP or LT notice header correctly, guiding a client through identity verification under Letters 5071C, 4883C, and 5747C, and understanding the IP PIN program. Chapters 4 and 5 build transcript literacy, teaching the practitioner to read an Account Transcript's transaction codes and cycle code and to select the correct retrieval channel and authorization form for a given representation scenario. Chapters 6 through 9 apply that foundation to the two notice tracks a preparer sees most often: refund delay investigation, the balance-due and collection sequence running from CP14 through LT11, and the exam and math-error sequence running from CP2000 through CP3219A, together with IRS contact channels and Taxpayer Advocate Service criteria. Chapter 10 closes by building a firm-level notice-response intake system.

What you'll cover

• Notice classification, Letters 5071C/4883C/5747C identity verification, and the IP PIN program
• Transcript literacy — transaction codes, cycle codes, retrieval channels, and authorization forms
• Refund delays, CP14 through LT11 collection, CP2000 through CP3219A exam, and TAS criteria

Who it's for

Preparers who field client notices and want a repeatable office workflow.

Statutory core includes IRC §§6320, 6330, 6212, 7803, and 7811.

The checkout button opens the matching Mastery Tax product page.

The Self-Employed Client: Schedule C from Intake to Filing

Finding the income, building the deductions, and finishing the return

CE hours

3

IRS program no.

YFSXX-T-00011-26-S

Delivery

Digital student book and online exam

Price

$39

Program description

Follow a self-employed client from a phone full of payment records to a completed return. Twelve chapters walk through business status, income reconciliation, deductible expenses, vehicles, home offices, inventory, and depreciation, then bring Schedule C, self-employment tax, and the qualified business income deduction together with worked examples and practical office steps.

What you will learn

• Determine business status and worker classification, then reconcile cash, app payments, and Forms 1099.
• Support expense deductions and apply vehicle, home-office, inventory, and depreciation rules.
• Complete Schedule C and Schedule SE, evaluate the QBI deduction, and build an estimated-payment and pre-filing plan.

Included in EA & Exempt Annual, 17 Hours. Due diligence is sold separately.

The Landlord Client: Rental Real Estate on Schedule E

From the first rental receipt to a defensible Schedule E

CE hours

2

IRS program no.

YFSXX-T-00012-26-S

Delivery

Digital student book and online exam

Price

$29

Program description

Follow a landlord with a former home turned rental and a room rented to short-term guests. Ten chapters teach how to classify the activity, establish basis, report rent, separate repairs from improvements, and calculate depreciation. Worked examples carry the properties through personal-use rules, passive losses, and the tax consequences of a sale.

What you will learn

• Distinguish Schedule E from Schedule C activities and establish basis, rental income, and expense allocations.
• Separate repairs from improvements and apply depreciation, vacation-home, and personal-use rules.
• Evaluate passive activity losses, real estate professional status, rental QBI, and sale-related tax issues.

Included in EA & Exempt Annual, 17 Hours. Due diligence is sold separately.