PERRY

Accounting & Tax Service

12598 Central Avenue | Suite 114

Chino, CA 91710

(909) 545-6940 Phone

(909) 575-6693 Fax

IT IS CALIFORNIA LAW ……

According to California law anyone who prepares tax returns for a fee and is not an attorney, certified public accountant (CPA), or enrolled agent (EA) MUST register as a tax preparer with the California Tax Education Council (CTEC).

Each CTEC Registered Tax Preparer is required to complete annual tax education courses and purchase a bond to protect you against fraud.

Always check the professional status of the preparer before handing over your tax information.

According to California law, effective January 1, 2005, the Franchise Tax Board (FTB) has the authority to identify and penalize unregistered preparers.

If preparers not registered with CTEC are caught illegally preparing returns for a fee, FTB will issue a $2500 penalty. If preparers fail to comply within 90 days, FTB will issue an additional penalty of $5000.

What is a CTEC REGISTERED TAX PREPARER?

ALL CRTPs must:

• First complete 60 hours of qualifying tax education
• Then complete 20 hours of continuing tax education each year.
• Always maintain a $5000 tax preparer bond

HOW TO VERIFY A CRTP

Every year CRTPs are given a compliance certificate and registration card showing the current year, their name, and CTEC number (the number always starts with a “A”).

You can verify your CRTP’s status through CTEC’s website www.ctec.org, click on “Verify a Tax Preparer” or call (877)  850-2832.

Consumers can report  unregistered preparers by filling out a “Noncompliant Form” on the CTEC website www.ctec.org. All reports are kept confidential.

BEWARE OF A PREPARER WHO….

• Refuses to sign your return
• Refuses to give you a copy of your return
• Charges a fee based on a percentage of the refund
• Promises you a refund before reviewing your tax information
• Was recommended by a family member or friend, but you cannot verify their professional status either as an attorney,CPA, CRTP or EA
• Claims to be a CRTP, but will not show proof of a current bond
• Fails to give you in writing, his or her name, address and phone number; and if claiming to be a CRTP, his or her current bond information
• Asks you to sign a blank form to be filled in later
• Does not have a written privacy policy
• Prepared your return last year, but may not be registered to legally preparer the return this year
• Claims t be a CRTP, but their name is not listed on CTEC website www.ctec.org

WHAT RISKS DO YOU TAKE BY WORKING WITH AN UNREGISTERED PREPARER?

• It may increase your chances for additional taxes, interest, fines and penalties
• You may miss out on opportunities to claim valid deductions
• It may prevent you from having legal recourse against fraud because the preparer was not bonded