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:
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:
*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, Underwriting@SuretyOne.com or click here for a live chat about your Nevada document preparation service bond need.
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