Tax News
New Legislation that Affects CTEC Registered Tax Preparers

As part of a new consumer-protection law, the California Tax Education Council (CTEC) now has legislative authority to take disciplinary action against CTEC-registered tax preparers.

California Senate Bill 484 gives CTEC the ability to deny, revoke or suspend registrations from CTEC-registered tax preparers (CRTPs) who are guilty or accused of unprofessional conduct. All reports of violations or suspensions will be submitted to us and Internal Revenue Service for review.

In addition, the new law revises the composition of the CTEC board and redefines CTEC as a nonprofit organization comprised of:

  • Not more than one representative from each California nonprofit corporation in good standing that represents, among others, tax preparers with a California membership with at least 400 in each of the previous three calendar years.
  • Not more than one representative from each for-profit tax preparation corporation, in good standing, with at least 400 employees or franchisees during the previous calendar year, and operating in California for at least three years.

Six CRTPs will also serve on the board, the only provision regarding board membership that was not revised.

Before the new law, board membership was limited to 200 members for both nonprofit organizations and for-profit corporations.

The bill takes effect January 1, 2014.

Back to December 2013 Tax News