Do South Dakota Tax Preparers Need the AFTR Course? The 2027 Season Answer
- The AFTR (Annual Federal Tax Refresher) is a 6-hour IRS course ending in a timed comprehension test.
- Non-exempt South Dakota preparers take it as part of 18 total CE hours for the 2027 AFSP Record of Completion.
- The 2027-season AFTR is open only June 1 – December 31, 2026.
- South Dakota has no personal or corporate income tax and no preparer registration. The AFTR is identical nationwide.
§1 The Short Answer
No law requires a South Dakota preparer to take the AFTR. The state doesn’t license or register tax preparers, and the IRS Annual Filing Season Program (AFSP) is voluntary. Federally, the only requirement for preparing returns for pay is a valid PTIN.
But if you’re a non-credentialed preparer who wants the AFSP Record of Completion, and you don’t qualify as exempt, the AFTR is required. The Annual Federal Tax Refresher is a 6-hour IRS-designed course covering filing-season law changes, a general review of federal individual tax topics, and practice and procedure. Once you pass its test, finish your other CE hours, and give the Circular 230 consent, you earn a listing in the IRS’s public Directory of Federal Tax Return Preparers. You also get limited representation rights for returns you prepared and signed. With no state credential to point to, that’s the main verifiable standard a South Dakota preparer can show clients.
§2 Exempt vs. Non-Exempt
Non-exempt participants complete 18 hours, including the AFTR. Exempt participants complete 15 and skip it. The exempt routes are:
- the former RTRP test
- SEE Part 1 passed within the past three years
- qualifying VITA/TCE volunteer or instructor service
- active registration with the Oregon, California (CTEC), or Maryland state preparer programs
South Dakota has no program on that list, so most South Dakota preparers are non-exempt. Run our 2-minute exemption check or read the full exempt vs. non-exempt guide if a federal route might apply to you.
§3 Course Format, Window, and Test
Only IRS-approved CE providers can offer the AFTR, and only during a fixed window before the filing season. The course ends with a timed comprehension test you must pass for credit. Your provider then reports the completion to the IRS under your PTIN.
AFTR COURSE AT A GLANCE
| Element | Detail |
|---|---|
| Course length | 6 hours |
| Available window | Jun 1 – Dec 31, 2026 |
| Test format | Timed, open-book |
| Required for | Non-exempt preparers |
Because it’s online, you can take it from Sioux Falls, Rapid City, or a farm office in between. Plan to finish by October or November. That way a retake or a slow provider report won’t collide with December 31. Our inside-the-AFTR-test guide walks through the exam.
§4 How the AFTR Fits the 18 Hours
The AFTR is 6 of your 18 hours. The rest are 10 hours of federal tax law topics and 2 hours of ethics, and hours in one category can’t count toward another.
NON-EXEMPT AFSP REQUIREMENT — 18 HOURS
| Course Category | Required Hours |
|---|---|
| AFTR course + comprehension test | 6 |
| Federal Tax Law Topics | 10 |
| Ethics | 2 |
| Total | 18 |
For the whole program, including the exempt track, see AFSP requirements for South Dakota preparers.
§5 The South Dakota Context
The AFTR itself doesn’t change from state to state, but South Dakota’s tax structure shapes what your work looks like. The state has no personal income tax on wages, investment income, retirement income, or anything else, and it has no corporate income tax. The South Dakota Department of Revenue administers sales and use tax, property tax, motor fuel, and other excise taxes. For individual clients, there’s no South Dakota income tax return to file.
For a preparer, that concentrates nearly all of your value on the federal return. Farm and ranch clients, small-business owners, and retirees still face the full weight of federal rules. That includes self-employment tax, depreciation, and the taxation of Social Security benefits, which is exactly the ground the AFTR’s federal review covers. Clients who moved in from an income-tax state, or who earn income across the border, may also still need a return in another state.
§6 Deadline and Record of Completion
December 31, 2026. The AFTR, your other 12 CE hours, and your Circular 230 consent (given in your online PTIN account) must all be complete by this date to earn the 2027 Record of Completion. Your PTIN must also be renewed for 2027.
After each course, confirm it appears on your CE record in your PTIN account, and don’t leave PTIN renewal until the last week. The PTIN renewal walkthrough covers the full year-end sequence.
§7 FAQs
Does South Dakota license tax preparers?
No. South Dakota has no licensing or registration program for paid tax preparers. A valid PTIN is the only federal requirement to prepare returns for pay.
Is the AFTR different for South Dakota preparers?
No. It’s a federal course with the same content and test in every state.
Does South Dakota have any income tax?
No. South Dakota has no personal income tax and no corporate income tax. The South Dakota Department of Revenue administers sales, use, property, and excise taxes instead.
What does the Record of Completion give me?
A listing in the IRS Directory of Federal Tax Return Preparers, plus limited representation rights before the IRS for returns you prepared and signed during the covered period.
Ready to get started? Enroll in Tax IQ Academy’s 2026 AFTR course, or browse the full AFSP & AFTR resource hub.
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.