FAQs
Got questions? We have answers. Below are the most common questions, explained.
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General Questions
What is CTEC?
The California Tax Education Council (CTEC) is a nonprofit organization mandated by state law to ensure tax preparers are educated and bonded. Generally speaking, California certified public accountants, enrolled agents, and attorneys with the State Bar of California are exempt from CTEC registration.
Who are CTEC Registered Tax Preparers?
CRTPs are required to meet initial tax education and continuing education requirements. They must also provide proof of a surety bond and IRS Preparer Tax Identification Number (PTIN). New registrants must pass a live scan and background check.
What if I live outside of California, can I prepare California tax returns without a CTEC registration?
Yes. The law is limited to overseeing tax preparers who are preparing state and federal tax returns for a fee within the State of California.
What if I only prepare federal tax returns? Do I still need to register with CTEC?
Yes. California law firmly states those who prepare or assist with preparing state and federal tax returns must register with CTEC if they do not meet exemption requirements.
Taxpayer-Specific FAQs
Who can prepare tax returns in California?
The Tax Preparation Act defines California certified public accountants (CPAs), IRS enrolled agents (EAs), CTEC-registered tax preparers (CRTPs), and attorneys with the State Bar of California as approved to prepare tax returns as a profession.
What if my tax preparer is not California-approved?
Hiring a tax preparer who does not meet California requirements will increase your chances for tax fraud, penalties, and additional taxes.
What if I have an issue with a tax preparer? Can I report it?
Taxpayers can report unregistered tax preparers here. All reports go directly to the California Franchise Tax Board (FTB) for further investigation. That said, any penalties or additional taxes taxpayers face as a result of the tax preparer, is still their responsibility.
If I report a tax preparer, will I get in trouble for hiring them? Will the tax preparer know about my report?
No. All reports submitted to the California Franchise Tax Board (FTB) through the CTEC website are kept confidential. Taxpayers will not get in trouble for what is submitted in the complaint.
Tax Preparer FAQs
What is the California Tax Education Council?
The Council is a nonprofit organization mandated by state law to ensure nonexempt tax preparers are educated and bonded.
Who is exempt from the Tax Preparers Act?
Generally speaking, California certified public accountants, enrolled agents, and attorneys with the State Bar of California are exempt.
How do I obtain a certificate of completion from CTEC?
Registrants must first complete CTEC registration and fee requirements before a certificate of completion can be obtained.
When can I legally prepare tax returns?
You may begin preparing tax returns after you complete all CTEC registration and fee requirements.
How do I obtain a tax preparer bond?
Many insurance and surety companies offer surety bonds. You must be at least 18 years old.
What if I live outside of California, can I prepare California tax returns without a CTEC registration?
Yes. The law is limited to overseeing tax preparers within the State of California.
Does the IRS have tax preparer requirements?
The IRS requires paid tax preparers to obtain a Preparer Tax Identification Number (PTIN).
Education Provider FAQs
How do I become an education provider?
Education providers must submit one course for evaluation. Search “education provider applications” on our website.
How do I apply to become a continuing and qualifying education provider?
Separate approval is required for each type of education. You must submit separate applications.
When do I have to renew the provider's application?
You are required to renew annually. Renewals run from October 1-December 31.
When do I have to submit my course for review?
Periodic reviews and audits are required. Periodic reviews are conducted once every three years.
