New vs. Renewal: What’s the Difference for CTEC Tax Preparers?

New or Returning? Here’s What You Need to Know About CTEC Registration

If you want to work as a paid tax preparer in California, you’ll need to register with the California Tax Education Council (CTEC). But whether you’re brand new to the profession or returning for another year, the process—and requirements—are different. Here’s a clear breakdown of what sets new registration apart from renewal for CTEC tax preparers.

Who Needs to Register with CTEC?

Any non-exempt individual who prepares tax returns for a fee in California must register with CTEC. Exemptions include California CPAs, attorneys, and IRS Enrolled Agents.

New Registration: Starting Your Journey

If you’ve never registered with CTEC before (or your registration has lapsed past the late renewal window), you are considered a new applicant. Here’s what you need to do:

Registration Cycle for New Preparers:

The registration cycle for new preparers begins November 1 each year. Additionally, new applicants have 18 months from the date they complete their 60-hour qualifying education (QE) course to register with CTEC. If you do not complete your registration within this time frame, you will need to retake the QE course.

Steps for New Registration:

1. Live Scan Fingerprinting and Background Check
   New applicants must complete a live scan and pass a background check.
2. Complete a 60-Hour Qualifying Education Course
   The course must be from a CTEC-approved education provider.
3. Obtain a $5,000 Surety Bond
   This bond protects your clients and is required by California law.
4. Get a Preparer Tax Identification Number (PTIN) from the IRS
   Register for a PTIN online at the IRS website.
5. Register with CTEC and Pay the Fee
   Complete the online application at CTEC.org. A $100 application fee, plus regular $33 and $2 processing fees will apply.
6. Wait for Approval
   Once all requirements are met and approved, you’ll receive your CTEC registration and can legally prepare tax returns for a fee.

Renewal: Keeping Your Registration Active

If you’re already registered with CTEC, you must renew every year to maintain your legal status as a tax preparer. Here’s how the renewal process differs:

1. Complete 20 Hours of Continuing Education (CE)
   You must complete 20 hours of CE from a CTEC-approved education provider (including federal and state tax law, ethics, and updates) each year.
2. Maintain Your Surety Bond and IRS PTIN
   Ensure your $5,000 surety bond and PTIN remain current.
3. Renew Online at CTEC.org
   Log in to your existing account, confirm your information, and pay the $33 renewal and $2 processing fees.
4. Meet the Deadlines
   • Renewal opens August 1
   • Deadline is October 31
   • Late renewal period runs from November 1 to January 15 (with a late fee).
     If you miss the late renewal deadline, you must start over as a new applicant—including retaking the 60-hour course.

CTEC Registration Renewal Cycle Explained

The CTEC registration renewal cycle for CTEC Registered Tax Preparers (CRTPs) follows a consistent annual schedule:

• Renewal Period Opens: August 1
  This is when all CRTPs can begin renewing their registration for the upcoming tax year.
• Renewal Deadline: October 31
  All renewals must be completed by October 31 each year to avoid late fees and a lapse in registration.
• Late Renewal Window: November 1 – January 15
  If you miss the October 31 deadline, there’s a late renewal period that runs from November 1 through January 15 of the following year. Renewing during this time incurs a $55 late fee, plus regular $33 registration and $2 processing fees. You are not permitted to legally prepare taxes for a fee until your registration is reinstated.
• Cycle Dates:
  The CTEC registration cycle officially runs from November 1 through October 31 of each year. Any continuing education (CE) hours you complete between these dates count toward the current renewal cycle.

Helpful Tip:
The best time to complete your continuing education and renew your registration is shortly after the new cycle starts on November 1. This way, your CE credits and registration will be valid for the upcoming year, helping you avoid last-minute issues and late fees.

In summary:

• Complete your CE and renew between August 1 and October 31.
• Late renewal is possible (with a fee) through January 15.
• The registration cycle covers any CE completed between November 1 to October 31 annually.