California Registered Preparer's Certificate
California law requires that prospective tax preparers successfully
complete 60-hours Of initial qualifying education and then 20-hours of
annual continuing education in order to maintain their CRTP designation.
With all the tax changes, it’s important that
The person preparing your taxes keep up with these changes by completing
his or her annual education requirements.
California law requires that in order to Protect you the consumer, a CRTP
must Maintain a $5,000 tax preparer bond, issued By a surety bond company
admitted to do business in California. This bond protects you against
fraud, misstatement and unlawful acts or omissions that might be
perpetrated by a CRTP.
California law requires that before a CRTP can render and tax preparation
services, her or she must provide you, in writing, with the CRTP’s
name, address, telephone number, as well as the name of the CRTP’s bond
company and bond number.
California law requires that when a person prepares a tax return, for a
fee, without the appropriate lawful credential, he or she could be
penalized up to $5,000. According to California Business and Professions
Failure to register as a tax preparer with the California Tax Education
Council will result in: (1) The amount of the penalty under the
subdivision for the first failure to register is $2,500. This penalty
shall be waived if proof of registration is provided to the Franchise Tax
Board within 90 days from the date of notice of the penalty is mailed to
the tax preparer. (2) The amount of the penalty under this subdivision for
a failure to register, other than the first failure to register is $5,000.
WHAT RISKS DO YOU TAKE BY HAVING YOUR TAXES PREPARED BY AN UNREGISTERED
It may increase your
probability for additional taxes, interest, fines and penalties;It may minimize your
opportunity to claim valid deductions; and It may prevent you from
having any legal recourse if fraud or unlawful acts occurred because the
person preparing your taxes was not bonded.
BEWARE OF THE PREPARER WHO…
Fails to give you
his or her name, address, phone number and current bond information
prior to rendering tax services;
Gives false or
misleading bond information;
Refuses to sign your
return ---- something is wrong;
Asks you to sign a blank
form to be filled in later;
Refuses to give you a
copy of any document he or she signs;
Did your taxes last year
but may not be registered to prepare them this year;
Was recommended by a
family member or friend, but is not registered to prepare taxes for a
Makes any fraudulent,
misleading, or untrue statements to get someone to use his or her
Charges a fee based on a
percentage of the refund;
Claims to be a CRTP but
is not listed on the CTEC website, http:ctec.org .