California Tax Education Council

Missed the Renewal Deadline?

Starting this year, CTEC-registered tax preparers (CRTPs) now have until January 15^thof each year to renew late. Before the policy change, CRTPs had until October 31^stof the following year to renew late. 

Below are answers to the most common questions and complaints regarding the new deadline.

CTEC did not adequately inform CRTPs of the new late renewal deadline.

CTEC has announced the deadline change for two years through newsletters, blog posts and a postcard that was sent to delinquent CRTPs reminding them to register. The first announcement was included in the May 2011 newsletter and was in each newsletter since then.

Why did CTEC change the deadline?

By law CRTPs cannot prepare tax returns for a fee until they are compliant with CTEC despite any “good intentions” to renew. Unfortunately, too many CRTPs were still preparing tax returns for clients with a delinquent registration.

The goal of the new deadline is simply to bring delinquent CRTPs into compliance before the start of tax season.

I completed my requirements, but I didn’t have time to renew by the deadline. Why should I be forced to re-register as a new tax preparer?

Please understand that at some point CTEC has to enforce a cut-off date to stop accepting late registrations. The process to renew online takes only minutes to complete once the requirements have been met.

The best tax update courses are offered in November and December, which makes the new January 15th deadline tough to meet.

Many CRTPs claim the best tax update courses are offered after October. As a result, some CRTPs argue that they are forced to pay CTEC a late fee each year because they can’t meet the October 31st renewal deadline.

Keep in mind that CTEC’s registration cycle runs from November 1st through October 31st of each year, which means any education taken between those dates is good for the current registration cycle.

For example, did you complete a course on or after November 1, 2012? Any unused education completed from that date until October 31, 2013 can be used towards the new 2013/2014 CTEC registration cycle.

It may take some of you an extra education course or registration cycle to get on track without having to renew late, but eventually it will save you from paying a late fee, plus you can take the education courses you want when you want.

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