California Tax Education Council

Enforcement: Round 6

As of April 8, 2011, the Franchise Tax Board (FTB) Tax Preparer Enforcement Team has contacted 396 tax preparers statewide. Of those, 215 tax preparers still have 90 days to either register with CTEC or stop preparing tax returns.

Remember unregistered tax preparers caught preparing tax returns illegally are issued a $2,500 penalty letter from FTB and have 90 days to comply.  If a tax preparer registers with CTEC by the deadline, the penalty is removed.  If the tax preparer does not comply or complies late, the $2,500 penalty stands.  In the next year, if that tax preparer still fails to comply and continues to file tax returns for a fee, the penalty increases from $2,500 to $5,000.

FTB reports it has issued the $5,000 penalty to 17 tax preparers; 10 tax preparers have also been issued the $2,500 penalty.

If you have information regarding an unregistered tax preparer, it is never too late to let us know. To report a questionable tax preparer, click on the Noncompliant Complaint Form located on the CTEC homepage and fill out the form.  FTB has looked into more than 100 reports submitted through the CTEC website. All information submitted will be kept private.

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