California law requires anyone who prepares tax returns for a fee within the State of California to register as a tax preparer with CTEC. Exempt preparers include California Certified Public Accountants (CPAs), Enrolled Agents (EAs), and attorneys who are members of the State Bar of California.
Step 1: Complete the online application
To apply, visit the CTEC website. In the process, you must pass a background check and fingerprinting procedure (Live Scan). You’ll receive notification from CTEC of Live Scan approval or denial.
Step 2: Complete 60 hours of qualifying education
You must pass 45 hours of federal and 15 hours of state qualifying education (QE) from a CTEC Approved Provider. Our Comprehensive Tax Course, California Edition is approved as qualifying education by CTEC.
You can start the required 60-hour QE before beginning the online CTEC application process; however, if you do not pass Step 1, you will not be able to register with CTEC as a tax preparer.
Step 3: Obtain a preparer tax identification number
The Internal Revenue Service (IRS) issues a Preparer Tax Identification Number (PTIN) to all paid tax preparers. Applying for your PTIN is easy and takes about 15 minutes online. There is a $19.75 nonrefundable fee, which can be paid by Credit/Debit/ATM card. Learn more about obtaining your PTIN.
Obtain your PTIN as soon as possible to keep things moving. You don’t need to wait until you complete Step 2.
Step 4: Obtain a tax preparer bond
A $5,000 bond is required for tax preparers in the state of California. This bond — also known as a CTEC bond — provides financial assurance. Learn how to obtain a bond.
Step 5: Register with CTEC
Once you’ve completed your 60-hour qualifying education course, you have 18 months (from the date on your completion certificate) to register with the CTEC.
Step 6: Complete annual continuing education requirements
Surgent Income Tax School is a CTEC-approved continuing education provider for maintaining your CTEC Registered Tax Preparer (CRTP) license. Each year, to renew the CTEC registration, all CRTPs must:
- Renew CTEC registration on time by October 31
- Complete 20 hours of continuing tax education by October 31, including 10 hours of federal tax law, 3 hours of federal tax updates, 2 hours of ethics, and 5 hours of California state tax law.
- Maintain a $5,000 tax preparer bond
- Ensure Preparer Tax Identification Number (PTIN) is valid
Additional continuing education considerations and requirements:
- Surgent Income Tax School (ITS) students should complete CTEC CE by 10/21 each year to ensure timely reporting in order to meet the 10/31 CTEC renewal deadline.
- CTEC students are responsible for verifying their own credits through their CTEC account before 10/21 to ensure complete and timely reporting of their CE before the 10/31 CTEC renewal deadline.
- Surgent ITS will do its best to request PTIN and CTEC numbers from Surgent ITS students, but it is the student’s responsibility to provide them to Surgent ITS School Administrators to ensure timely CE reporting.
- Surgent ITS is not liable for any delays caused by the CTEC.org website or the student’s failure to comply with the above requested actions.
- CTEC does offer late renewal for an additional fee, in which case Surgent ITS students must complete CTEC CE by 1/5 of each year to meet the 1/15 CTEC late renewal deadline.
- If you happen to miss the renewal deadline, the guidance for the late renewal CRTP registration is as follows:
- The late renewal deadline is January 15 each year.
- In addition to the renewal fee of $33, there is a $55 late renewal fee for a total of $88. (The late fee will not be waived.)
- If you don’t meet the late renewal deadline, you will be required to:
- Complete a 60-hour qualifying education course
- Undergo a background check
- You cannot practice tax preparation until you successfully complete your education and the background check
- If you choose to practice without renewing your registration, you face a $2,500 (up to $5,000) fine.
For more information, visit the California Tax Education Council (CTEC) website.