Federal Tax Law Updates: The 3-Hour AFSP Requirement for Exempt Preparers
Last reviewed: October 23, 2026 · By TAX IQ Academy
- Exempt AFSP preparers take 3 hours of Federal Tax Law Updates instead of the 6-hour AFTR.
- Exempt total: 15 hours = 3 Updates + 10 Topics + 2 Ethics.
- Deadline: December 31 for the following filing season.
What are the Federal Tax Law Updates hours in the AFSP?
Federal Tax Law Updates are 3 hours of continuing education on recent changes to federal tax law. In the IRS Annual Filing Season Program (AFSP), exempt preparers complete them in place of the 6-hour Annual Federal Tax Refresher (AFTR) course and its comprehension test.
| Component | Exempt preparer | Non-exempt preparer |
|---|---|---|
| Federal Tax Law Updates / AFTR | 3 hours (Updates) | 6 hours (AFTR) |
| Federal Tax Law Topics | 10 hours | 10 hours |
| Ethics | 2 hours | 2 hours |
| Total | 15 hours | 18 hours |
Is there a test for the 3 Federal Tax Law Updates hours?
No comprehension test is part of the exempt path in the way the AFTR test is for non-exempt preparers. The AFTR and its test belong to the 6-hour course. Always confirm with your IRS-approved CE provider how it records the Updates hours, because providers report completed hours to your PTIN account.
Can Federal Tax Law Updates hours replace Topics or Ethics hours?
No. Each category must be completed separately, so Updates hours do not count toward the 10 Topics hours or the 2 Ethics hours. A 15-hour exempt package needs all three categories in full, from an IRS-approved CE provider, by December 31.
Who takes the 3-hour Updates instead of the AFTR?
Exempt preparers, such as those who hold a recognized credential or passed a qualifying competency test, take the Updates. See who qualifies as exempt and the 18-hour non-exempt breakdown for comparison.
The AFSP is a federal IRS program and is identical in every state.
Next step
Read the 2027 season AFSP requirements guide, the state hub, or enroll in the 2026 Annual Federal Tax Refresher (AFTR). More in the AFSP & AFTR hub. Source: IRS AFSP.
Tax IQ Academy is an IRS and CTEC approved provider of continuing education for tax professionals, offering AFSP, AFTR, and EA exam prep courses covering federal tax law, ethics, and practice management.