How To Register A Company As A Tax Preparer In California

How To Become a CTEC-Registered Tax Preparer

It'south of import for professional taxation preparers in California to follow the state guidelines, which include the requirement that tax preparers register with the California Tax Education Council (CTEC). If yous want to become a taxation professional in the State of California, you will need to complete a CTEC Qualifying Teaching tax course and then annals with CTEC to become a CTEC-Registered Tax Preparer (CRTP).

In this article, nosotros discuss the steps required to register with CTEC, who is required and who is not required to register with CTEC, the substantial penalties for tax preparers who do not register with CTEC, and finally how to take your CTEC Qualifying Education (QE) course and go a CTEC-Registered Tax Preparer.

4 Steps to Condign a CTEC-Registered Tax Preparer (CRTP)

If y'all are seeking to register for the offset time equally a CTEC-Registered Tax Preparer (CTRP), there are a few steps you lot will need to take. We've summarized what you lot need to do to register with CTEC and condign a professional revenue enhancement preparer in California with the post-obit four steps:

Complete a 60-hour CTEC Qualifying Educational activity (QE) form within 18 months of when yous register with CTEC.
Purchase a $5,000 tax preparer bond.
Obtain a Preparer Tax Identification Number (PTIN) from the IRS.
Annals with CTEC and submit the $33 registration fee to CTEC online.

In society to register with CTEC, potential tax preparers must likewise at present 1) laissez passer a criminal background check; and 2) submit fingerprint images to CTEC for submission to the Department of Justice. After everything has been verified and finalized, CTEC will issue you lot a Certificate of Completion along with an identification card that will have your name, CTEC number, and the current year. After that, you volition be a CTEC-Registered Tax Preparer (CRTP).

Who Needs to Register With CTEC?

What types of tax preparers need to annals with CTEC? The answer is anyone who assists with or prepares land or federal income tax returns, in exchange for a fee, and isn't an exempt preparer. All of the post-obit individuals in California would demand to register with CTEC:

Tax preparers who take income taxation data and are not on the exempt list (see below)
Individuals who piece of work for an exempt revenue enhancement preparer merely are non exempt themselves and who sign the income tax return
If the individual does not sign the tax return, they are not required to register
Individuals who work for a CTEC-Registered Tax Preparer (CRTP) and who take income tax data from a client
Individuals who piece of work for a CRTP and who enter taxation information into a computer only who take no contact with clients are non required to register with CTEC
Inactive CPAs or non-California CPAs who ready taxation returns in California

If you desire to be a professional tax preparer in California and don't autumn in any of the exempt categories listed below, it's time to take the steps to become a CTEC-Registered Tax Preparer!

Who Is Exempt from Registering With CTEC?

California law requires individuals who prepares tax returns in commutation for payment to register as a professional tax preparer with CTEC. Some professionals are exempt from this requirement. Exempt taxation preparers who do non need to register with CTEC include:

California CPAs (Certified Public Accountants)
Enrolled Agents (EAs)
Attorneys who are members of the California State Bar
Certain specified cyberbanking or trust officials

What Are the Penalties for Not Registering With CTEC?

If y'all are not on this list of exempt tax preparers, you are required to register with CTEC in guild to ready taxation returns in California in exchange for fees. The California Franchise Tax Lath (FTB) has authority to penalize tax preparers who are not CTEC-Registered Tax Preparers. The penalties for non registering with CTEC include:

Beginning failure to register: $2,500 fine
Continued failure to annals: $5,000 fine

Clients also accept the power to confidentially report non-compliant tax preparers in California. If y'all are required to register with CTEC in California, information technology is in your best involvement to complete your registration.

CTEC License, Certification or Registration?

Many people search online for how to obtain a CTEC license — merely the term "CTEC license" is not technically correct. The term "CTEC certification" is non correct either. CTEC actually doesn't result whatsoever licenses or certifications. Technically, tax preparers are registered with CTEC. The misuse of these iii terms is common merely understandable.

If you are looking for how to get your CTEC "license", you really desire to larn how to annals with CTEC and get a CRTP (CTEC-Registered Tax Preparer).

Where Do I Have My CTEC Qualifying Education (QE) Course?

WebCE is a CTEC-approved teaching provider, and nosotros are proud to offer the CTEC Qualifying Education (QE) Grade online! WebCE is consistently the top online resource for online professional person certification and standing didactics courses. With WebCE'due south CTEC QE course and report aids, you can quickly become a CTEC-Registered Tax Preparer in California, even with no prior revenue enhancement experience. Afterward y'all've registered with CTEC, you tin can likewise use WebCE's convenient platform to complete your CTEC Continuing Education (CE) as well!

Why Choose WebCE for CTEC Qualifying Instruction?

Why choose WebCE over other education providers? WebCE has been in the business for over twenty years, and nosotros continually offer college quality education at more affordable prices on a more than convenient platform. WebCE's CTEC Qualifying Pedagogy grade also has the following features:

Graphics & Visual Aids
Real Life, Practical Examples
Power to Save & Go out Exams
Adjustable Fonts to Make Reading Easier
Take the Course at Your Own Step!

If you desire to be a professional tax preparer in California, WebCE makes taking your CTEC grade and completing your CTEC registration as like shooting fish in a barrel as possible. Get started today with WebCE's CTEC lx-Hour Qualifying Education Form!

CTEC Qualifying Education