Annual Federal Tax Refresher Course Outline
- Description
- Curriculum
- FAQ
- Notice
Overview
Every year, income tax prep must reflect inflation-driven changes to limits and new tax laws. This course explores these updates to help those preparing 1040 individual tax returns. The 2025 Annual Tax Filing Season Update covers new laws and key changes for the 2025 season, offers a tax overview, and reviews vital rules on ethics, practices, and procedures for tax return preparers.
Learning Objectives
- Recognize key individual income tax changes from recent legislation
- Use inflation-adjusted and other limits to properly prepare tax returns
- Understand federal tax filing statuses and when each applies
- Identify which types of income must be reported
- Apply tax rules to available credits and income adjustments
- Identify penalties for not meeting ethical and practice standards
- Understand duties and limits on preparers under Circular 230
This course is intended for individuals who are new to preparing individual federal income tax returns, including those seeking to meet the IRS Annual Filing Season Program (AFSP) requirements. it is especially suited for non-credentialed tax return preparers and others who want to stay current with tax law changes and ethical standards for the upcoming filing season. While CPAs, Enrolled Agents, and other credentialed tax professionals may also benefit from the material, continuing education credit may not be granted if their professional requirements have already been satisfied under Circular 230 guidelines.
(See IRS Publication 5362 and Revenue Procedure 2014-42 for details on AFSP eligibility and CE requirements.)
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Overview -
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1.1 Annual inflation and cost of living adjustments (Rev. Proc. 2024-40)
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1.2 New standard mileage rates (Notice 2025-05)
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1.3 Third-Party Network Transaction reporting requirements (FS-2023-27) (IR-2024-33) (Notice 2024-85) (Form 1099-K, Payment Card and Third Party Network Transactions)
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1.4 Direct File Pilot Program (Directfile.IRS.gov)
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1.5 SECURE 2.0 Act, Section 109, higher catch-up contribution limits for individuals aged 60-63 effective for 2025
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1.6 SECURE 2.0 Act, Section 124, increased age of onset blindness or disability for qualified ABLE programs effective for tax years beginning after 12/31/2025
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Overview
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2.1 Filing Status Review
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2.2 Taxability of earnings (such as wages, salaries, tips)
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2.3 Interest, dividends, foreign accounts and trusts
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2.4 Reporting and taxability of retirement income
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2.5 IRAs (contributions, deductions, distributions and 10% penalty)
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2.6 Reporting and taxability of unemployment compensation
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2.7 Alimony (divorce agreements executed before 2019; executed or modified after 2018)
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2.8 Schedule C, Profit or Loss from Business (Sole Proprietorship)
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2.8.1 Determination of gross income & deductions
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2.8.2 Business versus hobby
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2.8.3 Business use of home (regular vs. simplified method)
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2.8.4 Recordkeeping requirements
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2.8.5 Entertainment expenses (50% of business meals deductible)
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2.8.6 Section 179 expense limits (Rev. Proc. 2024-40(.25))
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2.8.7 Depreciation
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2.8.7.1 Bonus depreciation (including new 40% limit)
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2.8.7.2 Luxury auto depreciation limits (Rev. Proc. 2025-16)
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2.8.7.3 Listed property updates
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2.9 Overview of capital gains and losses
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2.10 Standard Deduction (Rev. Proc. 2024-40(.15))
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2.11 Schedule A, Itemized deductions (Form 1040 Schedule A, Itemized Deductions)
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2.11.1 Medical and dental expenses
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2.11.2 State and local tax deduction
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2.11.3 Home mortgage interest and home equity loans
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2.11.4 Charitable contributions
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2.11.4.1 60% AGI limit for cash contributions
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2.11.4.2 Contemporaneous written acknowledgment required for contributions of $250 or more (cash or property)
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2.11.5 Federally declared disaster area casualty loss deduction (including loss deduction for non-itemizers)
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2.11.6 Moving expense deduction suspended and reimbursement taxable
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2.11.7 Recordkeeping and documentation of deductions
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2.12 Tax credit eligibility (child tax credit, credit for other dependents, child and dependent care tax credit, education tax credits, earned income tax credit)
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2.13 Energy credits (Energy Efficient Home Improvement Credit)
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2.14 Clean vehicle credits (IRC 30D(g), 25E(f) (Pub. 5866) (Rev. Proc. 2023-33) (FS-2024-14) (Form 8936, Clean Vehicle Credits)
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2.15 General Topics
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2.15.1 Tax treatment of the acquisition and disposition of digital assets
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2.15.2 Alternative Minimum Tax (AMT) - exemption/phaseout amounts
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2.15.3 QBI deduction (including Form 8995 and Form 8995-A) (Rev. Proc. 2024-40(.27)
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2.15.4 Kiddie Tax including (Rev. Proc. 2024-40(.02)(.12))
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2.15.5 Section 529 Plans
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2.15.6 Achieving a Better Life Experience (ABLE) account
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2.15.7 Cancellation of student debt (when to exclude from income)
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2.15.8 Net operating loss (NOL)
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2.15.9 Premium Tax Credit, including no income cap through 2025 (Inflation Reduction Act)
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2.15.10 Employee fringe benefits
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2.15.11 Depreciation of rental property
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2.16 Withholding and estimated tax payments
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2.17 Balance due and refund options
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2.18 Tax return due dates and filing for extensions
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Overview
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3.1 Tax-related identity theft (Pub. 5199)
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3.2 Safeguarding taxpayer data (Pub. 4557)
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3.3 Overview and expiration of Individual Taxpayer Identification Numbers (ITINs) (Pub. 1915) (Form W-7, Application for IRS Individual Taxpayer Identification Number)
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3.4 Preparer penalties (inflation adjustments to penalty amounts) (Rev. Proc. 2024-40(.55)
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3.5 Tax preparation due diligence
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3.6 E-file requirements (no pay stub filing, when to get signature form, timing for handling rejects)
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3.7 Annual Filing Season Program
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3.7.1 Annual Filing Season Program Requirements
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3.7.2 Circular 230 and consent to be subject to Circular 230 rules
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3.7.3 Limited representation
- New Tax Law / Recent Updatesu2028
- General Tax Law Reviewu2028
- Practices, Procedures, and Professional Responsibilityu2028
Each year, the IRS updates the required outline. La Rusa ensures full compliance with the current curriculum in all course materials.
What is the duration and format of the course and exam?
- The course spans 6 hours of instruction.u2028
- It concludes with a 100-question multiple-choice test, as mandated by the IRS.
- To qualify for the Record of Completion, it must be successfully completed no later than December 31, 2028
- Records of Completion are issued as part of the PTIN renewal process.
Oregon-based Licensed Tax Consultants and Tax Preparers must complete 30 hours of CE annually, including 2 hours in ethics/professional conduct. AFSP courses from La Rusa can be applied toward these requirements.
Learning Objectives
- Recognize key individual income tax changes from recent legislation
- Use inflation-adjusted and other limits to properly prepare tax returns
- Understand federal tax filing statuses and when each applies
- Identify which types of income must be reported
- Apply tax rules to available credits and income adjustments
- Identify penalties for not meeting ethical and practice standards
- Understand duties and limits on preparers under Circular 230
This course is intended for individuals who are new to preparing individual federal income tax returns, including those seeking to meet the IRS Annual Filing Season Program (AFSP) requirements. it is especially suited for non-credentialed tax return preparers and others who want to stay current with tax law changes and ethical standards for the upcoming filing season. While CPAs, Enrolled Agents, and other credentialed tax professionals may also benefit from the material, continuing education credit may not be granted if their professional requirements have already been satisfied under Circular 230 guidelines.
(See IRS Publication 5362 and Revenue Procedure 2014-42 for details on AFSP eligibility and CE requirements.)
The access period for the course is 12 months.
It pertains to the 2024 - 2025 tax year and is delivered via self-study, with a PDF download available.
The provider of record for this course is La Rusa LLC, with the provider number LORLQ, and it falls under the field of study of Taxes. The course was last reviewed on June 18, 2025, and is classified as an overview study level. It has been approved for the Federal Tax Law Update.
The exam consists of 45 questions, and requires a passing grade of 70.
