State law requires persons preparing tax returns for a fee to be
registered. Basic qualifications for registration are the same for preparers
and interviewers. Some preparers are
exempt from State registration because they are regulated by other
agencies. These include enrolled
agents, CPAs, attorneys, and Tax Preparers employed by banks, savings and loans, or
loan companies that operate tax preparation services.
Applicants for State registration must be at least 18 years old, with a
high school diploma or the equivalent.
They must have had either 60 in-class hours of approved instruction in
basic personal income tax law, theory, and practice, or two years of equivalent
work experience preparing personal income tax returns, covering both California
and federal taxes. They must also post a $5,000 surety bond.
Because many community and four-year colleges only cover federal
taxation, students must take additional instruction in State tax laws.
In order to be registered on the basis of work experience, applicants
must have worked full-time for two tax seasons or part-time for four tax
seasons, preparing both federal and State returns. Registration with the State of California must be renewed
annually. Renewal requires the
completion of 20 hours of continuing education, with eight hours in federal and
four hours in State taxation. Some tax
services offer instructional courses to help their employees become registered.
