If you’re a practicing tax professional in the state of California who does not have a certified public accountant (CPA) or enrolled agent (EA) designation, you’re required to register by law as a tax preparer with the California Tax Education Council (CTEC).
Registration with the CTEC means the tax professional is a CTEC registered tax preparer (CRTP), and therefore must complete a few requirements upon registration, as well as when renewing registration.
Requirements were updated in 2020 and apply to those seeking CTEC registration in 2021.
CTEC requirements
As of July 1, 2020, all new applicants who would like to register as a tax preparer with CTEC must pass a criminal background check and submit fingerprint images to CTEC to determine an individual’s eligibility to register. These new requirements are not applicable to current CRTPs, only new applicants after July 1, 2020.
However, CRTPs who allow their CTEC registration to expire and re-register with CTEC after July 1, 2020, will be required to take the 60-hour qualifying education (QE) course, and will be required to go through a background check and submit fingerprint images to CTEC.
CRTPs who let their registration expire must complete the following before their application will be considered:
- Complete 60 hours (45 hours federal, 15 hours state) of QE with an approved CTEC education provider
- Obtain a $5,000 tax preparer surety bond
- Register for an IRS preparer identification number (PTIN)
- Complete a criminal background check and submit fingerprint images to CTEC
To renew a CRTP registration, you must:
- Complete 20 hours (10 hours federal tax law, 3 hours federal tax update, 2 hours of ethics and 5 hours of state tax law) of continuing tax education each year
- Maintain a valid PTIN
- Renew registration by Oct. 31 of each year
- Pay the registration renewal fee of $33
California preparers who do not meet these requirements are subject to a $2,500 fine for their first offense and $5,000 for every subsequent offense.
Who must register?
(Image source: ctec.org)
CTEC NATP members can take advantage of the free CPE with membership, including 4 CPE of ethics and due diligence webinars. You can also join the California NATP chapter for additional state-specific education and to network with other professionals in your area.
About National Association of Tax ProfessionalsThe National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. NATP is comprised of over 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers.
The NATP headquarters is located in Appleton, WI. To learn more, visit www.natptax.com.
Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing.