I got a notice this week, from that terrible CPA society, saying CA. as of 1/6/06 passed a regulation effective immediately saying if you prepare a California return you have to be registerred(licensed) in CA. I am registerred for E filing in CA and I am assuming it means for preparation of Ca. resident returns-I have only ONE. The notice was from the state organization and it referred questions to the national organization who was preparing a response to what was wrong with the legislation.. Does it affect anybody and have they heard anything???
-
-
which returns are covered?
is this just for full year resident returns or does it cover part year and nonresident returns?
I have a couple of NR returns for CA property owners. -
I assumed full year residents
New CA rules effective 1/1/06 require CPAs outside of CA who perform tax returns for a "California" client, to obtain a CA practice privilage. Preparing returns now falls within the CA BOA definition of the practice of public accountancy (there are some narrow exceptions). If firms are the preparer the CPA Firm will need to must register with the Sec of State and it requires one partner to be fully licensed in CA.
I am assuming residents.
For a full explanation go to http://.cpasea.org/documents/Executi...ter_2-2-06.doc
Also view the California "Practice Privilege Handbook". www.dca.ca.gov/cba/forms/pphandbook.pdf
Good luck... I think this is the last step to having CA become part of Mexico.Comment
-
CA isn't part of Mexico?
What about those preparers who are not CPA's? Is this going to require all preparers to meet the bonding requirements of the CA Tax Education Council? Sounds like a money grab to me.
How can a state require a non resident to conform to a state law? I don't see the jurisdictional authority.Comment
-
Another board
This was discussed on another board I belong to and one of the preparers stated that they will complete the return anyway. Their theory is what is CA going to do, disallow the return? Personally, I will cross that bridge when I come to it.I would put a favorite quote in here, but it would get me banned from the board.Comment
-
Exclusions and exemptions
CPAs:
Section 5054 of the California Accountancy Act allows for a narrow exception from the
practice privilege requirements for the preparation of tax returns for California clients
who are individuals (natural persons) or the estate of individuals (natural persons) who
were California clients at the time of death.
The exception provides that an individual or firm holding a valid and current license,
certificate, or permit to practice public accountancy from another state may prepare tax
returns for natural persons who are California residents or estate tax returns for the
estates of natural persons who were clients at the time of death without obtaining a
permit to practice public accountancy issued by the Board provided that the individual or
firm does not physically enter California to practice public accountancy pursuant to
Section 5051, does not solicit California clients, and does not assert or imply that the
individual or firm is licensed or registered to practice public accountancy in California.
Preparers:
Section 22250-22259 of the California Business & Professions Code requires any person who for a fee assists with or prepares tax returns for another person to comply with the California Tax Preparers Act. Section 22258 exempts CPAs, Attorneys, Enrolled Agents and anyone employed by these individuals.Comment
-
Nancy
They had the exception in the E. I too hope that covers me since I would never solict business in CA. The MN CPA Chapter seems to think they need a further explanation and some information on what are their next steps. The last part does not hold true for exemption for CPAs or anybody anymore. 21 state CPA Socs are writing letters of protest, but this was in the works for a few years and at least from the CPA side they think it is serious. I file about 6 returns to CA, but only one is a resident there. I do not think it applies to preparation of nonresidents who have to report there.
They even have CPA firms registered in CA have to have one partner licensed there. They are doing what they can to get some money both for CA preparers and fees.
I have on and return is usually done in Oct, but this year will be different as she finally sold her Minnesota rental. I will do the return and see if their are any consequences...Comment
-
Paper Return
Guys, I'm lucky -- I had a couple retirees from California in years gone by, and I know they are a money-hungry state. One of them died, and the other moved again to West Virginia.
If CA is rejecting E-filing because of this requirement, I guess I would simply overwhelm their offices with paper returns. This state is also known for ridiculous money grabs which cost them more than what is brought in, and this could be the case here. If they come after tax preparers in North Carolina or anywhere else, just quit doing their returns entirely.
Seems like California retirees are everywhere. They cash in their high-priced real estate, which is middle-priced in California but buys a mansion in other states. Before I sent a red dime to California to register, I would simply stop doing their returns.
If California doesn't want to deal with thousands of paper returns or thousands of non-residents not filing, then I would encourage them to reconsider. Their only recourse would be to institute backup withholding on non-filers and enforce the backup withholding upon payers within their own state.
I've got some great friends and family who live in California, but none of them are enchanted with California government. It's bad when they have to recall their own vote to get rid of their governor, and they complain about state government all the time. A couple of them have cashed in their chips and moved to other western states.Comment
-
So, does this apply to non-resident filers?
I am not a CPA, but do file 1 non-resident CA return for a client who owns some of that high-priced CA real estate. Am I required to register, and what are the consequences of e-filing if I'm not registered?Comment
-
I hope not...
I am not goin gto register for that.Comment
-
I got a reject this morning
E-filed CA nonresident and a CA resident return yesterday with the Communist Republic of CA and got rejects on both of them this morning. I assume this is connected to this discussion regarding the new law. Is the only alternative to mail in paper return?
Jainen, what are you guys doing out there, trying to keep all non resident preparers out of the market. J/K! LOL! ;-)Comment
-
Where you registered to E file there??
They require that. Non resident does not make sense for sure... I have a part year resident in now. I did not know he had moved to CA. You have to register and I am for E ing.Comment
-
mention my name
Communist? Not us. It's you free-trade guys think you can just help yourself, one-for-all.
Give these people a jingle: http://www.ftb.ca.gov/online/8633/index.html
They will expedite your request and waive the fee if you mention my name.Comment
-
thanks for the assistance Jainen
got registered today, hope to be able to resubmit the returns on Monday. Have to say, for all of CA's downfalls, this was a really painless process.
I was once a resident, lived in San Diego for 2 years, and truly believe it is the best city in the country (great culture and absolutely wonderful weather), just wouldn't want to raise my daughter there with the gang problems. My dad is CA born and bred, and still lives in San Mateo, not to far from you I think.
Anyway, thanks for the help on this one.
JoshinNC (not signed in at home)Comment
-
Same way the IRS can tax your worldwide income even if you don't live in the US. Same way Dell or HP or IBM could require only a licensed tech to work on you system or void the warranty.Originally posted by JoshinNC
Most likely the wording is that they will NOT ACCEPT the return if not from a licensed preparer.Comment
Comment