Tax Preparer Bond – California
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. For questions or more information about California tax preparer bond requirements, you may access the CA CTEC website by going to http://www.ctec.org/, call (877) 850-CTEC, or call us at (800) 995-0997.
$25 /one year ♦ $45 /two yrs ♦ $50 /three yrs ♦ $64 /four yrs ♦ $80 /five yrs
How do I request a bond and how long will it take to receive it? You may complete our online bond request to the right, call (800) 995-0997, or email your request to firstname.lastname@example.org. If you prefer, you may fax a request to fax number (805) 426-0300. The California Tax Preparer Bond is quick to prepare and no credit check is required, so it will be delivered, as you prefer, by email, fax, or mail immediately upon request during our regular business hours.
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.
When can I contact Ameribonds® to discuss my bond request? Ameribonds® Surety is open Monday-Friday, 6:00 am to 3:00 pm Pacific Time, but you may request a bond anytime. Your request will be processed during regular business hours. Our phone number is (800) 995-0997 and our email address is email@example.com. __________________________________________________________________________________
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 preparers 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.
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 preparer, or the tax preparers employed or associated with it to provide tax preparation services. The tax preparer filing the bond shall identify all tax preparers employed or associated with the tax preparer. A tax preparer employed or associated with a tax preparer 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 preparer. 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 tax preparer 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 preparer 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 preparer 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 preparer shall furnish evidence of the bond upon the request of any state or federal agency or any law enforcement agency.
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Ameribonds Surety & Insurance Services – California Insurance License #0784043