California Tax Education Council
Got a Registration Question?
Tuesday, February 1, 2011 - 42 commentsNew to CTEC? Renewing with CTEC? Not sure if you need to register with CTEC? Before you call or e-mail, please read the below list of most frequently asked questions.
I completed the required education, but the system will not let me register online? Why not?
CTEC-approved education providers have 45 days from the date your course was completed to report the hours to CTEC. If the system is not letting you register or renew, it is possible the education provider has not yet reported the hours. Registrants should call the education provider (not CTEC) to get the hours uploaded.
Also, as of November 1, 2009, two hours of ethics is now part of the 20-hour continuing education requirement (12 hours federal, 4 hours state, 2 hours ethics, 2 hours federal and/or state). If you did not complete the ethics requirement, the system will not let you to renew until you do so.
If you did complete the ethics requirement and the system is still locking you out, you should call the education provider to verify the hours. There have been some reporting issues due to the “newness” of the ethics requirement. If that is the case, the education provider can easily fix any reporting issues.
Do I need a PTIN to register with CTEC?
Yes, as of January 1, 2011 the IRS is requiring all paid tax preparers who prepare or assist with preparing federal tax returns to obtain a Preparer Tax Identification Number (PTIN). Because it is an IRS requirement, CTEC-registered tax preparers (CRTPs) must have a valid PTIN before they can register.
How do I get a tax preparer bond?
Many insurance companies offer tax preparer bonds. An insurance agent or advisor can make recommendations. CTEC does not provide a list of bond companies.
What if I only assist with preparing tax returns?
Employees of attorneys, CPAs and EAs are exempt from CTEC registration as long as they do not sign the tax return. If the employee signs the tax return, he/she must register with CTEC.
Other individuals who prepare or assist with preparing state and federal tax returns must register with CTEC even if they do not sign the tax return. For more information on CTEC registration and exemption requirements, go to the Franchise Tax Board website www.ftb.ca.gov and search “CTEC Registration.”
What if I live outside of California, but I prepare California tax returns?
The law is limited to overseeing tax preparers who are preparing state and federal tax returns for a fee within the State of California. Out-of-state tax preparers are not obligated to meet California requirements.
What if I only plan to prepare federal tax returns for a fee? Do I still need to register with CTEC?
Yes, anyone who prepares federal and state tax returns for a fee within the State of California must be either an attorney, CPA, CRTP or EA.
What if I only plan to prepare state tax returns for a fee? Do I still need register with the IRS?
No, the tax preparer only needs to comply with California requirements. The new IRS regulation is limited to paid tax preparers who prepare or assist with preparing federal tax returns. For more information regarding IRS registration requirements, please visit www.irs.gov/taxpros.
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Comments
I completed the form online, but the system does not let me proceed further. It is freezing up. Please advise.
Please call the CTEC office at 877-850-2832 for assistance.
I recently got married and legally changed my name. When I went to re-register I was able to change all of the information except for my name. How can I make this new information applicable before my new certificate is sent to me?
You can fax or email CTEC with a copy of your marriage certificate. Please be sure to provide your CTEC number and explain you would like to change your name.
When we go to register we are to put in the last 6 of our SSN and our last name. How does that information get into CTEC computer -- faxed/emailed application or education provider???
The education provider has already submitted your information to CTEC so when you go to register, the computer matches that information.
1. If an EA decides to prepare taxes in CA, does he/she need a CTEC? 2. I finished my QE, and have a PTIN. In order to get my CTEC ID for the upcoming tax season, when and how should I apply?
No, as an EA you do not need to register with CTEC. Attorneys, CPAs and EAs are all exempt from CTEC registration. If you decide to register with CTEC despite your exempt status, you can register online starting November 1st for the upcoming tax season. To register online, the QE hours must have been completed by a CTEC-approved education provider (they are responsible for reporting your hours to CTEC), a $5,000 surety bond, a PTIN and Visa or MasterCard to pay the $25 registration fee. To register on November 1st, go to our homepage and click on "Registration/Personal Account."
Just finished my EA tests and application to become an EA. Once I am an EA do I still need register with CTEC? Do I still need to do the CA continuing ed?
No, you do not need to register with CTEC or complete CTEC continuing education requirements. You will be exempt from CTEC requirements as an EA. However, you will need to inform CTEC when you become an EA so we can update our database.
Just finished my EA tests and application to become an EA. Once I am an EA do I still need register with CTEC? Do I still need to do the CA continuing ed?
No, once you become an EA you will be exempt from all CTEC requirements. Please email us at info@ctec.org when your EA status is finalized so we can update our database.
Thank you for your response. One more question. Would there be any issues if I decided to re-take an entire beginner's course although I already have a CTEC ID Number? I was thinking of taking the entire course to fully refresh my knowledge and being that these courses are usually 60+hrs, I was wondering if this would get my education requirements up to speed and have me set come next year.
So sorry for the delay in response. Your comment somehow got lost in our alerts. To answer your question, yes, you can retake the 60 hour course and have it count toward CTEC CE credit. Just keep in mind that you also have to meet IRS federal requirements as well and that 60 hour course may be different from the new IRS requirements.
I was just informed that I need to complete 40 hours of continuing education (20 hours for 2011/2012 and 20 hours for 2012/2013). My question is what is the best course of action to make up the 2011/2012? Do providers offer continuing education courses that would be, in this case, a year old?
Yes, some still offer old courses. Unfortunately CTEC cannot make any recommendations. We suggest you go to our provider list and call around to find out who offers the best courses that meet your needs.
I was just informed that I need to complete 40 hours of continuing education (20 hours for 2011/2012 and 20 hours for 2012/2013). My question is what is the best course of action to make up the 2011/2012? Do providers offer continuing education courses that would be, in this case, a year old?
Do EAs need to have a tax preparer bond?
Yes, if an EA decides to register with CTEC, he/she needs a bond; however, CTEC will also accept E&O insurance instead of a bond.
I HAVE NOT RECEIVED MY REGISTRATION CERTIFICATE
Ana- Registration certificates are now downloadable online and are no longer automatically mailed to you. If you want an embossed certificate mailed to you, you can order one for a $10 fee. Call our office for details (877) 850-2832.
I am taking a CTEC at home course for the first time, can I get my PTIN before finishing the CTEC course?
Tara, yes, you can get your PTIN now. You will need it before you can register with CTEC
Hi, I got a CTEC registration 2 years ago, and I worked for a tax company. However, the following year I worked during tax season in NYC. I was a manager for different VITA sites. My questions is If I need to take a 60 hours classes for my CTEC or just 20 hours classes?
If you are still preparing tax returns for a fee in California and it has been more than two years since you registered with CTEC, then you will most likely need to start over and take the 60 hour qualifying education course. We recommend you call the office for details to see if this is the case. It is hard to say for sure without looking at your records and talking to you more about your experience in NYC.
Thanks for your semi-response to my previous question. From your response and the information (such as it is) at the FTB web site, I am going to assume that the answers to my CRTP registration questions would be as follows: 1=No 2=Cannot tell from your answers or the website. 3=No 4=No 5=Seems to depend on whether they have any physical contact with the client 6=Same as #5. 7=No. Does CTEC agree with my conclusions? After looking at the actual legislation, I have to say that the definition of "assist" can be all over the place and no one has spelled it out clearly.
Yes, we agree with your conclusions. As for #2, if all they are doing is collecting the form, then no, they do not need to be registered. If you are still unsure about our answers, call the CTEC office at 877-850-CTEC. The main purpose behind the law’s definition of “assisting with” (which was revised a few years ago) is to, 1. ensure employees of exempt preparers who prepare and sign returns are registered, and 2. ensure employees who are taking data and asking clients questions regarding their returns have a basic knowledge of taxes. Before CA Senate Bill 797 passed in 2008, those two issues of "assisting with" were not outlined in the law and FTB found it needed to have clearer definitions after doing enforcement visits.
Your blog states that employees of EAs are exempt from CTEC registration. This assumes that each business is a sole proprietorship or partnership. What if the firm is a corporation owned by or employing EA's? Are those employees exempt unless they sign returns?
Basically anyone who takes data from a client or has direct contact with the client regarding the tax return must register with CTEC. Regarding your EA question, as long as the EA signs the tax return, the employee is exempt because it is ultimately the EA who is taking responsibility for the work. Since it is the Franchise Tax Board's responsibility to enforce tax preparer compliance, they have posted a special section on their website outlining who is and is not exempt from CTEC registration. It should answer all of your questions regarding exemption requirements. Go to www.ftb.ca.gov and search "Must I register," then click on "Registered Tax Preparers."
Would the following individuals be defined as "assisting with preparing state and federal tax returns": 1. Prints out client copies of the return and staples them together. 2. Collects signed form 8879s from the taxpayers 3. Prints out and collects the client bill for fees due. 4. Does bookkeeping work for a client that ultimately results in P&Ls and Balance Sheets that are used by someone else to prepare the tax return. 5. Creates a spreadsheet that is subsequently used by some else to prepare the tax return. 6. Totals detail taxpayer information so that those totals can be entered into a tax return by another preparer. 7. Makes appointments for taxpayers to meet with others for the purpose of preparing their tax returns. Since these are all valid ways of "assisting" with preparing tax returns, just who in a multi-person tax firm would NOT be required to be a CRTP or exempt?
I did not renew my registration for the 2011 tax year, so to prepare taxes for 2012 do i do continuing education or do i have to take the 60 hour course again?
It sounds like you still have time to take continuing education and can renew late. Keep in mind,however,you cannot legally prepare tax returns for a fee until you are compliant with CTEC. We suggest you call the office to double check that your registration has not expired.
I SEE WHERE BOE IS OFERRING FREE TAX PRPARATION ESPECIALLY FOR THOSE ENTITLED TO EIC. THAT IS TAKING OUR INCOME FROM US AND HOW ARE WE GOING TO HELP PAY THOSE POOR PEOPLE THEIR EIC. ONE HAND CONTROLS AND TAKES WHILE THE OTHER GIVES IT AWAY.