Becoming a registered CTEC tax preparer in California is crucial for your career, and there are few reasons for doing so. CTEC or California Tax Education Counsel is a non-profit, private organization that the State of California recognizes to educate budding tax preparers. It has the responsibility of approving tax education institutes and also verifies non-exempt tax preparers.
Most importantly, the council also ascertains whether a candidate has fulfilled the state’s minimum requirement to prepare taxes and file them in exchange for a charge from the taxpayers. Here are the reasons to go for this registration.
1. Thorough Background Checks
Once you have met the minimum requirements and applied for a CTEC registration, you will undergo a background check and fingerprint checks. That ensures that you have never got into any trouble with the law, and this huge relief for the taxpayers who would be entrusting you with their financial details in the future.
Attaining a CETC registration allows you to practice as a tax preparer anywhere in California, whether independently or as a part of an organization, and you will gain the complete trust of your clients. You are also provided with a Preparer Tax Identification Number or PTIN by the IRS, proving that you are ready to prepare and file taxes for others.
2. Thorough Knowledge Acquisition
If you want to become a tax preparer in California, you need to have a thorough understanding of the state’s tax rules so that you can help your clients. CTEC registration is mandatory here because it shows that you have acquired the necessary skills and education to file taxes in the state.
This is because you have to complete a 60 hours course on taxes before registering, building the foundation of becoming a tax preparer in California. You might have previous experience dealing with accounts and taxes, which does not automatically make you eligible to prepare taxes in exchange for a fee. Hence, CTEC registration becomes crucial if you want to embark on a successful career in taxes.
3. To Attain CRTP Certification
This is the primary reason why CTEC registration is mandatory for a tax preparer in California. To practice in the state, you must first become a CTEC Registered Tax Preparer or CRTP. This happens after completing the dedicated 60 hours training. You get 18 months after that to complete your registration and purchase the Tax Preparer’s Bond in order to become a CRTP.
Failing to do so means that the application will again have to undergo the 60 hours training course and retake the examination. By following such stringent norms and concentrating on the training and education of new tax preparers, the IRS has also minimized scams and frauds during tax filing.
The California Tax Education Council is particular about the candidates that apply each year, but it is a fulfilling journey in the end. CTEC registration can also be renewed, and you should opt for the renewal if you prefer to keep practicing in California. You can start your practice after CTEC registration and operate anywhere in the state, thereby ensuring a stable and lucrative career ahead.