A bill is currently in the California legislature that would significantly increase your obligations as a CTEC Registered Tax Preparer (CRTP). This bill, AB1140 (authored by Assembly Member Mark Stone), would apply to CRTPs only. It would not apply to a much larger portion of the tax preparation community that includes: Certified Public Accounts (CPAs); Enrolled Agents (EAs); and attorneys. This bill, if passed in its current form, would require CRTPs to provide clients and potential clients with two disclosures, one before preparing the tax return and one after preparing the tax return.
Notice Before: A written notice would be required before preparing a potential client’s return that includes all of the following information:
Notice After: After completing a tax return, a CRTP would be required to provide a written disclosure signed and dated by the CRTP including:
Both statements must be signed and dated by the client and retained by the CRTP for a minimum period of three years.
A CRTP who violates these provisions more than once will be subject to a $750 penalty issued by the California Franchise Tax Board.
The full text of the bill can be found here ---> AB-1140 Tax Preparers - Disclosures
If you have concerns about this legislation, please contact your local representative and let your voice be heard. You can find your representative by going here: http://www.legislature.ca.gov/your_legislator.html Or contact Assembly Member Mark Stone’s Office, as Mr. Stone is the legislator carrying this bill.
A petition opposing the legislation can also be found here....
His office can be reached here:
Santa Cruz County District Office
Santa Clara County
Monterey County District Office
My question is WHY?? Most people do not want to mess with going on line to prepare their own. Plus let alone to a volunteer center. Who in heavens name came up with this???
I strongly DISAGREE. Whoever came up with this bill doesn’t make any sense. It is very unfair.
I think it creates an UNFAIR competitive advantage for CPAs, EAs, and other tax professionals exempt from the billion. Why would you not require CPAs and EAs to do the same as CRTPs?If the purpose of the law is to protect the client, it has to be applied uniformly, the same for everyone. Totally discrimination!
You can voice your concerns by contacting Assemblyman Stone's office or sign a petition here - https://www.change.org/p/mark-stone-california-legislation-would-discriminate-against-california-tax-return-preparers?cs_tk=AmQbM-PFgdkhPvx4T14AAXicyyvNyQEABF8BvFAqZMkPFAGZj4FIo1SS89Q%3D&utm_campaign=977ff023a0c3421a9c64ab902d314c82&utm_content=initial_v0_0_1&utm_medium=email&utm_source=recruit_sign_digest&utm_term=cs
This doesn’t even make sense. What is the point? Not sure what this accomplishes. Plus, it is just unfair that we are being singled out.
If you disagree, you should contact Assemblyman Mark Stone. There's also a petition for those who oppose - https://www.change.org/p/mark-stone-california-legislation-would-discriminate-against-california-tax-return-preparers?recruiter=1042405761&utm_source=share_petition&utm_medium=copylink&utm_campaign=share_petition
Thank you for making us aware of this! It seems like an important issue for us to take action on.
You can show your opposition by filling out this petition - https://www.change.org/p/mark-stone-california-legislation-would-discriminate-against-california-tax-return-preparers?recruiter=1042405761&utm_source=share_petition&utm_medium=copylink&utm_campaign=share_petition