Pursuant to the Provisions of Section 22250 of the California Business and Professions Code, each applicant for a tax preparer license must file a California-compliant tax preparer bond. Subsection (A) of the licensing statutes states that any person who for consideration assists with or prepares tax returns for another person or who assumes final responsibility for completed work on a tax return on which preliminary work has been done by another person, or who holds himself or herself out as offering tax preparing services, fall under licensing regulation and must post the surety bond.
The California tax preparer bond must run to the State of California 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 preparers. The surety bond must be written in the amount of five thousand dollars ($5,000) per preparer. A tax preparation firm has further duties with respect to the bonding of employees and subs. The employing firm must identify all tax preparers employed or associated with the firm and provide for each employee or associate evidence that he or she is covered by the mandatory tax preparer bond. The total surety bond required from any single tax preparer and the tax preparers employed or associated with it must not exceed one hundred twenty-five thousand dollars ($125,000).
A tax preparer may not conduct business without having a current surety bond in the amount prescribed by Section 22250 as well as meeting the CTEC's prelicensing education requirements. The following links will take you to the pertinent pages:
California surety bond leader, Surety One, Inc. is a specialist in the bonding needs of the tax preparation and advisory sector. We offer both surety and fidelity bonds in support of tax preparers in all fifty states, Puerto Rico and the U.S. Virgin Islands. Feel free to contact us at (800) 373-2804, Underwriting@SuretyOne.com or click here for a live chat about your California tax preparer bond need.
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