Who Must Register?
Any non-exempt tax preparer in California who, for a fee, assists with or prepares state and/or federal income tax returns must register with the California Tax Education Council (CTEC) to become a CTEC Registered Tax Preparer (CRTP). Exempt preparers are California Certified Public Accountants (CPAs), attorneys who are members of the State Bar of California, Enrolled Agents, and certain other specified banking or trust officials.
See the table below for more information.
How Do I Become a Registered Tax Preparer?
- Take a 60-hour qualifying education course from a CTEC approved provider.
- Purchase a $5,000 tax preparer bond from your insurance/surety agent.
- Submit your application and a $25 registration fee to CTEC.
Note: The individual tax preparer is responsible for completing the registration requirement whether or not the employer provided or paid for a surety bond and CTEC registration. The unregistered tax preparer is personally liable for any penalties, not the employer.
You may not legally prepare income tax returns until after you have registered with CTEC each year. Go to the CTEC website at www.ctec.org for complete information and requirements.
How Do I Renew My Annual CTEC Registration?
- Take a minimum of 20 hours continuing education from CTEC approved provider(s) which must include 12 hours of federal tax curriculum, 4 hours of California tax curriculum, and the remaining 4 hours of either federal or state curriculum.
- Maintain your $5,000 tax preparer bond.
- Submit your renewal application and the $25 annual renewal fee before October 31 of each year ($38 if submitted after 10/31) to CTEC. Note: Effective with the renewals for 2009/2010, the annual registration late fee has been increased from $13 to $15.
If your registration has lapsed for more than one year, you are considered a new tax preparer. See above for those requirements.
For additional information, go to www.CTEC.org.
Am I required to register with CTEC?
| If you: | And you: | Required to register with CTEC? |
|---|---|---|
| Are an inactive CPA or are a non-California CPA | Are preparing income tax returns for a fee in California | Yes, or you must resume/become an active California CPA |
| Work for an exempt preparer | Sign the income tax return | Yes |
| Do not sign the income tax return (exempt preparer is the responsible party) | No | |
| Work for a CTEC Registered Tax Preparer | Take income tax data from a client and enter it into a computer (whether in person or other contact) | Yes |
| Have no contact with clients and perform the clerical function of inputting tax information into the computer for your employer | No | |
| Are not an exempt preparer | You take income tax data from a client and enter it into a computer and/or prepare the return | Yes |
| Are a non-exempt tax preparer who prepares tax returns that are bundled or included with other services | Receive a fee for the bundle of services which include the preparation of the tax return | Yes |
| Are an employee of a business unrelated to tax return preparation | Prepare (or assist with preparation of) the company’s business income tax return | No |
| Compile the company’s business income tax information for submission to a paid tax preparer who will prepare the return | No |