Tax preparer surety bond cost
Tax preparers in California must post $5,000 surety bonds. Surety Bonds offers these bonds for 3 years of coverage for $50 or 5 years of coverage for $80—meaning that a 5-year bond is just $16 a year! There’s no credit check required, so everyone qualifies instantly. Purchase your California surety bond now!
Because these bonds can be written on longer terms than most, it is important to ensure that you are not currently bonded before contacting Surety Bonds, as first-term bonds are non-cancellable, non-refundable legal documents.
Why this bond
By posting a California tax preparer surety bond, principals (tax preparers) pledge to conduct business in compliance with the provisions of Division 8, Chapter 14 of the Business and Professions Code. Specifically, these bonds protect any person from a principal’s misstatements, misrepresentations, dishonesty, fraud, deceit or any other unlawful acts or omissions.The principal must reimburse the surety for all damages paid out.
Tax preparer bond details
Tax preparer bonds in California remain valid for up to 5 years from the effective date. The surety can cancel the bond by giving written notice of cancellation to the principal at least 30 days prior to the effective cancellation date.
Become a tax preparer
To legally practice tax preparation services in California, applicants must first register with the state. To be eligible for registration, applicants must:
- Take a 60-hour qualifying education course from an approved provider
post a surety bond of $5,000
- Obtain a Preparer Tax Identification Number (PTIN) from the Internal Revenue Service
- Submit an application to the California Tax Education Council (CTEC)
- And more
Apply for your surety bond
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