California Tax Education Council

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Disciplinary Actions Against CTEC Registered Tax Preparers Now Public

Thursday, January 23, 2020 - 0 comments

California Assembly Bill 3143 aims to increase the protection of taxpayers by allowing CTEC to post on its website all disciplinary actions taken against a registered tax preparer by the council, including misconduct that results in suspending or revoking a registration. CTEC is also required to post a list of its registrants on probation that specifies the reason why and the terms.

In addition to posting disciplinary actions, the new law requires registrants to report all paid claims against their surety bond to CTEC. CTEC will post a listing of those claims on its website.

California law requires paid tax preparers to be either an ​attorney​, ​certified public accountant (CPA)​,​ ​enrolled agent (EA)​ or  C​TEC-registered tax preparer (CRTP)​. Of the 80,000 tax preparers estimated to be doing business in California, 40,000 are registered with CTEC.

To obtain a CTEC registration, CRTPs must pass a 60-hour qualifying tax education course, purchase a $5,000 surety bond to protect taxpayers against fraud, plus obtain a ​Preparer Tax Identification Number (PTIN) ​from the I​nternal Revenue Service​. After their initial registration, CRTPs are required to maintain their bond and PTIN, plus complete 20 hours of continuing education each year before they can renew with CTEC.

As of July 1, 2019, all disciplinary actions against CRTPs are posted on ​ .​Taxpayers who need to verify the status of an attorney, CPA or EA, must contact their oversight agencies. 


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