Choosing a Preparer
California law requires that prospective tax preparers successfully complete 60-hours of initial qualifying education and then 20-hours of annual continuing education in order to maintain their CRTP designation. With all the tax changes, it's important that the person preparing your taxes keep up with these changes by completing his or her annual education requirements.
California law requires that in order to protect you the consumer, a CRTP must maintain a $5,000 tax preparer bond, issued by a surety bond company admitted to do business in California. This bond protects you against fraud, misstatement and unlawful acts or omissions that might be perpatrated by a CRTP.
California law requires that before a CRTP can render any tax preparation services, he or she must provide you, in writing, with the CRTP's name, address, telephone number, as well as the name of the CRTP's bond company and bond number.
California law requires that when a person prepares a tax return, for a fee, without the appropriate lawful credential, he or she could be penalized up to $5,000. According to California Business and Professions Code 22253.2, Failure to register with the California Tax Education Council will result in: (1) The amount of the penalty under the subdivision for the first failure to register is $2,500. This penalty shall be waived if proof or registration is provided to the Franchise Tax Board within 90 days from the date of notice of penalty is mailed to the tax preparer. (2) The amount of the penalty under this subdivision for a failure to register, other than the first failure to register is $5,000.
What Risks Do You Take By Having Your Taxes Prepared By An Unregistered Preparer?
- It may increase your probability for additional taxes, interest, fines and penalties;
- It may minimize your opportunity to claim valid deduction; and
- It may prevent you from having any legal recourse if fraud or unlawful acts occurred because the person preparing your taxes was not bonded.
Fails to give you his or her name, address, phone number and current bond information prior to rendering tax services;
- Gives false or misleading bond information;
- Refuses to sign your return - something is wrong;
- Asks you to sign a blank form to be filled out later;
- Refuses to give you a copy of any document he or she signs;
- Did your taxes last year but may not be registered to prepare them this year;
- Was recommended by a family member or friend, but is not registered to prepare taxes for a fee;
- Makes any fraudulent, misleading, or untrue statements to get someone to his his or her services;
- Charges a fee based on a percentage of the refund;
- Claims to be a CRTP but is not listed on the CTEC website, www.ctec.org.
A CRTP is a CTEC Registered Tax Preparer
BY LAW, in the State of California, when an individual prepares taxes for a fee and is not an attorney, certified public accountant (CPA) or enrolled agent (EA), he or she MUST register with the California Tax Education Council (CTEC). Once registered, he or she is a CTEC Registered Tax Preparer (CRTP).
California Tax Education Council (CTEC)
P.O. Box 2890
Sacramento, CA 95812
Tel 916-492-0457
or 877-850-2832
Fax (877) 851-2832
www.ctec.org
