Bond Amount
$5,000
Requiring Entity
State of California Tax Education Council (CTEC)
Underwriting Criteria
Instant Issue No Credit Check Required
Premium Rate(s)
- 1 Year - $60
- 2 Years - $70
- 3 Years - $85
- 4 Years - $100
- 5 Years - $115*
Who is Required to Secure this Bond
A California Tax Preparer Bond in the amount of $5,000 is mandatorily required to be filed with the California Tax Education Council, as set forth in the California Business and Professions Code sections 22250-22259, for any person who collects compensation for the assistance or preparation of State and/or Federal tax returns or assumes responsibility for such a return and/or who offers such services. It is necessary that the Principal to the bond have met all other license criteria upon issuance of a Tax Preparer Bond. Such criteria consists, of but may not limited to, being 18 years of age, having completed the 60 hours of required continuing education through an institution approved by the California Tax Education Council. The tax preparer filing the bond shall identify all tax preparers employed or associated with the them and shall provide for each employee or associate the evidence required for becoming as tax preparer which is inclusive of each employee or associate being 18 years of age, have completed the 60 hours of required continuing education through an institution approved by the California Tax Education Council. All employees and/or associates of the tax preparer will be covered under the surety bond of their employer however, in no event shall the total bond required for any singe tax preparer and their employees and/or associates with it be required to exceed one hundred twenty five thousand dollars ($125,000). The aggregate liability of the Surety Company to any and all persons, regardless of the number of claims against the bond shall not exceed $5,000.
Bond Requirement Specifics
The Tax Preparer Bond requirement is set forth in the California Business and Professions Code sections 22250-22259, to be in favor, and payable to the State of California and is structured to benefit any person or persons damaged by acts made by the tax preparer characterized by fraud, dishonesty, misstatement, misrepresentation, deceit and or any unlawful acts or omissions by the tax preparer, or any employee or associate of the tax preparer. If the tax preparer does not comply with the conditions of the laws and practices set forth by the California Tax Education Council, a consumer may file a claim against the bond. The Surety Company who issued the tax preparer bond on behalf of the tax preparer must validate each claim and in the event the tax preparer is found negligent, the Surety Company must pay the damages sought in the bond claim.
Who is protected Under this Bond
Consumers of the tax preparer who have enlisted their services for which they have been compensated the tax preparer for the assistance or preparation of State or Federal tax returns or assumes responsibility for their tax are entitled to damages under the bond should the tax preparer to be found negligent in a claim situation.
Underwriting Process
Consumers of the tax preparer who have enlisted their services for which they have been compensated the tax preparer for the assistance or preparation of State or Federal tax returns or assumes responsibility for their tax are entitled to damages under the bond should the tax preparer to be found negligent in a claim situation.
What you Need to do Once you have your Bond
Upon completion of our simple online application, you will be able to download a copy of your surety bond. Although the California Tax Education Council DOES NOT require that you file the original bond with them, it is mandatory that they be provided the name of the Surety Company which issued the bond, as well as the bond number. This can be provided to the California Tax Education Council when registering as a Tax Preparer on their web-site located at www.ctec.org
Obligee Link
www.ctec.org.
* Please be advised that the quote you obtain for this bond may include a fee charged and retained by The Bond Exchange.