During the 2024/2025 fiscal year, the Franchise Tax Board (FTB) Tax Preparer Enforcement Team contacted 1,753 questionable tax preparers, including some who failed to comply in the prior year. Tax preparers in need of attention from enforcement are contacted by mail.
As of May 1, 2025…
FTB sent 989 contact letters. Of those…
- 651 – No previous penalty
- 338 – Previous penalty
In addition to mail, some may also be contacted by phone and in-person…
- 550 – Phone calls
- 214 – Site visits
Those with no previous penalties…
- 12% Complied
- 2% Met Requirements
- 15% Penalties
- 0% Abated penalties
- 71% Open cases
Those with previous penalties…
- 24% Complied
- 0% Met Requirements
- 24% Penalties Issued
- 0% Abated Penalties
- 72% Open cases
Unregistered tax preparers who are caught preparing or assisting with preparing tax returns for a fee will receive a $2,500 penalty – a first failure to register penalty. However, the penalty will be waived if proof of a valid credential is provided to FTB within 90-days from the date the penalty notice is mailed to the tax preparer.
If the tax preparer does not provide FTB with proof of a valid credential, FTB will issue a $5,000 penalty for each subsequent failure to register.
CTEC pays for the entire enforcement program. All penalties collected by FTB are
deposited into the state’s general fund. To report an unregistered tax preparer, click here.
