CA Tax Prep Bond
A tax preparer bond, otherwise known as a CTEC bond, is required by the State of California to register as a tax preparer. The CTEC surety bond is a $5,000 bond and the California Tax Education Council requires that you indicate the name of the bond company and bond number on your tax preparer registration paperwork. You may apply for your CA tax preparer bond online or by phone, email or fax.
Tax Preparer Bonds
What information is required and how do I pay for my bond? All we need is your Name, Address, Phone and/or email address. We also will need to know whether to deliver your bond by email, fax or mail, as well as payment information. Credit cards, business checks and USPS money orders are accepted as payment.
Get a California Tax Preparer Bond
When can I contact NFP Surety to discuss my bond request? NFP Surety is open Monday-Friday, 8:00 am to 5:00 pm Pacific Time, but you may request a bond any time. Your request will be processed during regular business hours. Our phone number is (800) 863-3210.
According to the CTEC, CA tax preparers may obtain their bond before they complete their tax course, and must get a bond before they register with CTEC. Students no longer need to complete their qualifying education tax class, get a completion certificate from the tax school, apply for and obtain a CTEC certificate, and then obtain a bond. They may obtain the bond while in school, receive their completion certificate from the tax school, use both the certificate and the bond to register with CTEC. Tax accountant will continue to provide their clients with bonding information prior to rendering tax services. In addition, they will provide CTEC with the bond information at the time of registration or renewal. Tax clients who don’t receive, or who misplace their tax preparer bond information, may obtain it from CTEC. Learn about different types of California bonds.
A tax preparer shall maintain a bond issued by a surety company admitted to do business in this state for each individual preparing tax returns for another person. The principal sum of the bond shall be five thousand dollars ($5,000). The bond shall be in favor of, and payable to, the people of the State of California and shall be for the benefit of any person or persons damaged by any fraud, dishonesty, misstatement, misrepresentation, deceit, or any unlawful acts or omissions by the tax person, or the tax preparers employed or associated with it to provide tax preparation services. The tax preparer filing the bond shall identify all tax professionals that work for, or associated with the tax expert. A tax pro. employed by or associated with a tax professional shall be covered by the bond of the tax preparer with which he or she is employed or associated. The aggregate liability of the surety to any and all persons regardless of the number of claims against the bond or the number of years the bond remains in force shall not exceed five thousand dollars ($5,000) for any one tax professional. Any revision of the bond amount shall not be cumulative. The liability of the surety on the bond shall not include payment of any civil penalties, fines, attorneys’ fees, or any other cost provided by statute or regulation. The California tax professional shall file an amendment to the bond within 30 days of a change in information contained in the bond, including a change in the tax preparers employed or associated with the tax preparer.
A tax preparer may not conduct business without having a current surety bond. Thirty days prior to the cancellation or termination of the tax person bond, the surety shall send a written notice of that cancellation or termination to the tax preparer, identifying the bond and the date of cancellation or termination. If a tax preparer fails to obtain a new bond by the effective date of the cancellation or termination of the former bond, the tax pro. shall cease to conduct business until that time as a new surety bond is obtained.
Notwithstanding Section 995.710 of the California Code of Civil Procedure, a tax preparer may not make a deposit in lieu of bond. A tax professional shall furnish evidence of the bond upon the request of any state or federal agency or any law enforcement agency.
NFP Surety – California Insurance License #0784043 We can cover all surety bond types in California, including tax preparer. Let our team of experienced bonding professionals help protect and grow your business.
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