Tax Preparer Bond

Woman auditor sitting at a desk looking over paperwork with a calculator.

Tax preparer bonds protect the general public against fraudulent persons who might misstate information when filing taxes on their behalf.

Key Highlights

A tax preparer bond is necessary for professional tax filing specialists in California only.
You must undergo 60 hours of training in federal tax law and California state tax law before you can purchase a tax preparer bond.
Tax preparer bonds are intended to provide assurances to those who engage tax preparation services that the tax professional will be acting in their best interest.

How do I purchase a tax preparer bond?

NFP, the nation's largest and most reliable surety company, is authorized to issue tax preparer bonds in each of the 50 states. We can provide the best rates for your bond, as well as the fastest issuance, to get your business off and running.

Our short online application makes it easy. Click below to start the application process today.

Apply Now!

Tax Preparer Surety Bond FAQs

What is a tax preparer bond?

Tax preparer bonds, a document that is required in certain circumstances for professionals who prepare taxes for others, are intended to provide assurances to those who engage tax preparation services that the tax professional will be acting in their best interest while working with their personal financial information.

Who needs a tax preparer bond?

In California, anyone who professionally prepares tax returns for others is required to obtain a $5,000 tax preparer bond before registering with the California Tax Education Council (CTEC). There are a few exceptions to this rule, including various banking officials, attorneys who are members of the California State Bar, enrolled agents, and certified public accountants (CPAs).

Why are these bonds important?

Tax preparer bonds protect the general public against fraudulent persons who might misstate information when filing taxes on their behalf. The bond acts as a kind of guarantee that the preparer will comply with all the provisions listed in the state Business and Professions Code and that they will represent tax information in an honest and forthright manner.

If any kind of malpractice should occur, the aggrieved party would have the option of filing a claim against the tax adviser for any damages incurred. Then, the surety company that posted the bond would pay the amount of the claim, and immediately pursue the principal to seek reimbursement in the amount of the claim.

Why are they only required in California?

There are no current federal regulations that govern the actions of paid tax consultants, and in fact, it has been said that there are more constraints placed on hair stylists and barbers than on tax preparers. Enforcing honest and legitimate tax return preparation has been left to individual states.

Only four states have chosen to establish any kind of requirements for paid tax consultants: Oregon, Maryland, New York, and California. While there are educational requirements imposed by the other three states, only California provides some method of redress (the surety bond) for cases where a taxpayer is affected by dishonest or non-compliant professional services.

Are there special requirements for purchasing a tax preparer bond?

Before you can purchase a tax preparer bond, you must undergo 60 hours of training in federal tax law and California state tax law. This training can be done either online or in a traditional classroom setting. Then you must contact a surety company that sells this kind of bond, one option being NFP, one of the country's largest and most reliable surety companies. Upon receipt of your tax accountant bond, you must then register with CTEC before offering your services to clients in the state.

Why Get Bonded Through NFP?

Fast and Easy

All Types. All States.

Surety Bond Experts

Strong Relationships

Pricing Flexibility

Apply Now

Explore All Surety Bonds

Browse all of our surety bonds below or connect with the expertise and guidance of one of our surety bond specialists.

Additional License and Permit Surety Bonds

Explore All Surety Bonds

Browse all of our surety bonds below or connect with the expertise and guidance of one of our surety bond specialists.

Commerical Surety Bonds

Construction Surety Bonds

License and Permit Surety Bonds

Latest Insights

Contractual Risk Assessment for Construction Contractors

We highlight the key areas your surety provider will focus on and ways to address surety concerns in construction contracts.

Construction workers talking on a job site

Stable Surety Programs for Private Equity-Owned Construction Companies

Despite rising interest rates and growing recessionary fears, private equity remains a popular class of investment for acquisition and ownership of closely held businesses.

construction worker looking at laptop in the early morning

Surety-Backed Letters of Credit – The Right Solution for the Times

Over the last several years, we’ve all gotten used to uncertainty in the macroeconomic environment. However, one factor has felt certain — it seems that each time central bankers meet, the federal funds rate increases another 25 ‒ 50 basis points. We’re currently experiencing interest rates that are higher than we’ve seen since the 1990s. Many effects, like higher prices at the pump, increased borrowing costs and the cooling of the housing market are immediately apparent to consumers. But these

A Guide to Becoming a Freight Broker

Becoming A Freight Broker There has probably never been a better time to become a freight broker than now, with the US economy becoming stable and even improving each year, and an increasing need for new brokers in the freight industry. It can be a very rewarding career to be involved in since freight brokers are critical for maintaining the smooth flow of goods all across the country. It's not much of an exaggeration to say that freight brokers play a major role in keeping the economy itself r

Image of glasses and a pen next to surety bond.

What is a Bonded Title?

Bonded Title If you need to register, insure, or sell a vehicle, trailer, or camper and cannot get a duplicate title from your DMV, check to see if your DMV allows for bonded titles. To obtain a title bond, the asset in question usually must not be abandoned, stolen, or the subject of any current or pending litigation. Since obtaining a bond requires signing legal documents, the information below will ensure that you understand the basics of bonded titles and the surety bonds behind them. If yo

Bonding Company Near Me

A surety bond is a binding agreement that involves three parties; the principal (the entity executing the contract), the obligee (the person for whom the service is performed), and the surety (the party that underwriting the contract). The agreement protects the obligee from loss as a result of the principal's failure to execute his responsibility. There are two types of bonds; commercial and contract surety bonds. People looking for a local bonding agency should note that commercial bonds are

All Types. All States. The very best solutions for your surety bond needs.

Apply Now

Business Insurance Best Place To Work 2024

Tax Preparer Bond