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CTEC Decides Against Fee Increase

The California Tax Education Council (CTEC) recently announced it plans to increase the registration fee from $25 to $35 and the late fee from $13 to $15. However, due to the fragile economy the council decided to only increase the late fee and not the registration fee. The new late fee will take effect November 1, 2009.

The original reason behind the fee increase was so CTEC could provide more funding for its public awareness campaign and still maintain FTB’s enforcement at its current level. Last year, CTEC allocated $350,000 from its 2008/2009 budget to pay for FTB enforcement services.

Paid tax preparers who are not an attorney, certified public accountant (CPA), or enrolled agent (EA), are required by law to register with CTEC. Anyone caught preparing tax returns illegally could face penalties up to $5,000 from FTB. All penalties collected go into the state’s general fund.

CTEC public awareness and enforcement campaigns will continue to be top priorities, but considering the economic downturn, the board decided a fee increase might create a financial hardship on professional tax preparers. As a result, public awareness will not get additional funds for its 2009/2010 advertising campaign.

Back to July 2009 Tax News