Nevada Document Preparation Service Bond

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Bond Penalty: $25,000 per preparer up to $200,000

A tax document or tax return preparer must be licensed by the secretary of state and file a Nevada document preparation service bond in order to do business. There are several types of preparation work that fall under the regulation and two notable exemptions. Pursuant to NRS Chapter 240A, A document preparation service is a person who receives compensation for doing one or more of the following:

  • Prepares or completes any pleading, application or other document for a client.
  • Translaties an answer to a question posed in such a document.
  • Secures supporting documents for a client such as a vital record that might be required in connection with a legal matter.
  • Submits a completed on behalf of a client to a court or administrative agency.
  • Prepares or assists preparation of a substantial portion of a federal or state tax return or claim for a tax refund except an enrolled agent authorized to practice before the Internal Revenue Service unless he or she also provides other document preparation services that require registration.
  • A paralegal who performs one or more of the actions described unless the paralegal works under the direction and supervision of an attorney authorized to practice law in Nevada.
  • A bankruptcy petition preparer as defined by section 110 of the United States Bankruptcy Code, 11 U.S.C. § 110.

The Nevada document preparation service bond must be filed by a preparer regardless of whether the operator is an individual or business entity. The minimum surety bond threshold is twenty five thousand dollars ($25,000) for an individual document preparer and a business with a sole preparer. The obligation guarantees the payment of damages caused by the licensee's; (i) act or omission of the which violates a provision of NRS 240A or a regulation or order adopted or issued pursuant to the same; (ii) A wrongful failure or refusal by the preparer or his/her firm to provide services in accordance with a client contract ; (iii) Fraud, dishonesty, negligence or other wrongful conduct of the licensee or his/her firm; or (iv) An act or omission in violation of any federal or state law for which the return of fees, an award of damages or the imposition of sanctions have been awarded by a court of competent jurisdiction; or civil penalty due to the secretary of state, award of attorney’s fees or costs of suit owing and unpaid for the same. The Nevada document preparer bond penalty follows a specific formula:

  • One registrant to perform document preparation services, $25,000 bond.
  • Two to twenty-five registrants, $50,000 bond.
  • Twenty six to seventy-five registrants, $75,000 bond.
  • Seventy-six to one hundred twenty five registrants, $100,000 bond.
  • One hundred twenty six to two hundred registrants, $150,000 bond.
  • More than two hundred document preparer registrants, $200,000 bond.

*Do you prepare tax returns for California clients? Learn more here.

Nevada 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 and document preparers in all jurisdictions that require them. Feel free to contact us at (800) 373-2804, or click here for a live chat about your Nevada document preparation service bond need.

Surety bond application review and quoting are free of charge. There is no obligation to purchase.