A tax preparer surety bond is a requirement that is expected of any tax preparer that practices in the State of California. The State of California franchise tax board demands that any tax preparer that is willing to prepare state or federal tax for any client or group of clients, must produce a surety bond before the necessary license is issued.
There are, however, some certain exemptions for some certain categories of taxation advisors and accountants, some of these include California Certified Public Accountants (CPA), and also some attorneys who are associated with the State Bar of California, as a member. Some other includes enrolled agents and some banking officials. It is important to note that the tax preparer surety bond is not the only requirement that is necessary before the granting of licenses. Other requirements included the fact that the principle most meets the minimum age requirement of 18 years and must also have taken a minimum 60 hour qualifying education course that is specifically recognized by the California Tax Education Council.
Another factor that must also be taken into consideration is the fact that any tax preparer that is already practicing must make sure that the current bond used for practicing has a minimum of 30-day allowance to termination. At any point in time the tax preparer is required to acknowledge the surety’s notification of the need to renew the bond before expiration. The license of a tax preparer ceases to exist if the bond is not renewed before the end of the 30-day notification to termination of the bond.