2022 Annual Federal Tax Refresher (IRS AFTR) (Course Id 1835)

Taxes - Taxes for Course Id 1835

Each year, various limits affecting income tax return preparation and tax planning are affected by inflation-related changes. In addition, various laws passed to address the financial consequences of the coronavirus pandemic significantly affect tax planning and may also affect taxpayers’ income tax liability. This course will examine many of those changes. 

The Annual Federal Tax Refresher course is designed to meet the requirements of the IRS voluntary Annual Filing Season program. It discusses new tax law—including various tax extenders—and recent updates for the 2022 filing season, provides a general tax review, and examines important rules governing tax return preparer ethics, practices and procedures.

In organizing this course, the term "domain" is used in place of the more common "chapter" to more closely follow the language of the IRS Annual Federal Tax Refresher course outline. 

Text - Technical - IRS Enrolled Agents - Registered Tax Return Preparers - 1835

2022 Annual Federal Tax Refresher Course Learning Objectives

• Identify the principal individual income tax changes brought about by recent legislation;
• Apply the inflation-adjusted and other limits to the proper preparation of taxpayers’ income tax returns;
• Recognize the federal income tax filing statuses and the criteria for their use;
• Describe the current status of tax extenders;
• Identify the types of income that must be recognized;
• Apply the tax rules to the various credits and adjustments to income that are available to taxpayers;
• Recognize the penalties that may be imposed on a preparer for failing to meet ethical and practice standards in preparing tax returns; and
• Identify the duties and restrictions imposed on tax preparers under Circular 230.

Domain 1
New Tax Law/Recent Updates

• Identify the inflation adjustments to various federal limits;
• Recognize the optional standard mileage rates;
• Apply the required minimum distribution rules applicable to traditional IRAs and retirement plans;
• Describe the rules for repayment of COVID-19 related distributions from qualified retirement plans and IRAs;
• Identify the rules governing nonitemizers’ permitted adjustment for charitable contributions;
• Recognize the income tax rules applicable to the Recovery Rebate Credit;
• Describe the current status of tax extenders applicable to –
  o Medical expense deductions,
  o Tax credits for non-business energy property,
  o College tuition and fees deductions,
  o Deduction for payment of mortgage insurance premiums, and
  o Cancellation of primary residence indebtedness.

Domain 2
General Income Tax Review

• Identify those items included in a taxpayer’s taxable earnings;
• Determine the tax treatment of foreign accounts and trusts;
• Apply the rules governing contributions to and distributions from IRAs;
• Describe the reporting and taxability of unemployment compensation;
• Recognize the items included in self-employment income and expenses;
• Distinguish between a hobby and a business for tax purposes;
• Calculate the tax deduction for business use of a home;
• Identify the recordkeeping requirements to substantiate Schedule C entries;
• Understand the tax treatment of retirement income;
• List the factors considered in determining the tax treatment of capital gains and losses;
• Recognize the eligibility requirements for various tax credits;
• Describe the rules governing a taxpayer’s tax withholding and estimated tax payments;
• Recognize the options available to a taxpayer for paying any tax due or receiving a tax refund; and
• Identify the due dates of income tax returns.

Domain 3
Practices, Procedures & Professional Responsibility

• Identify the red flags indicating possible tax-related identity theft and suggested assistance to its victims;
• Understand the laws and regulations requiring privacy and security of taxpayer data and the best practices tax preparers may implement to help assure it;
• Describe the purpose of individual taxpayer identification numbers, their effect on tax credits and how to renew them;
• Recognize the penalties applicable to a tax return preparer under Title 26;
• Identify the due diligence requirements imposed on tax return preparers with respect to claiming head of household filing status, EITC, CTC and AOTC;
• Understand the e-file requirements; and
• Recognize the Annual Filing Season Program requirements.

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