California Registration

[Snaggletooth]

Looks like I will be having to file a non-resident CA return this weekend. As far as I know this is one of two returns, one a
non-resident individual and the other a foreign corporation.

Am I required to register with California for these two returns? This has probably been discussed before, but I might get more
current information if I ask anew.

By the way, if I am required to register, I might be looking at other alternatives (such as filing a paper return or doing his
return free). Call me a rebellious preparer if you wish but there is such a thing as common sense.

[Gary]

No

I file California returns every year. The only place I need to register is NY.

[appelman]

Here is the official answer from the CTEC web site.

Q & A - What if I live outside of California, can I prepare California tax returns?

Yes. The law is limited to overseeing tax preparers who are preparing state and federal tax returns for a fee within the State of California. Out-of-state tax preparers are not obligated to meet California requirements.

[S T]

From Ca.gov Franchise Tax Board -

Background
California law requires anyone who prepares tax returns for a fee and is not an exempt preparer to register as a tax preparer with the California Tax Education Council (CTEC). Exempt preparers are California certified public accountants (CPAs), enrolled agents (EAs), attorneys who are members of the State Bar of California, and certain specified banking or trust officials.

Other criteria is the PTIN #

Effective January 1, 2011, the IRS will require all paid tax preparers who sign federal tax returns to have a Preparer Tax Identification Number (PTIN).

IRS online registration for tax preparers will start September 1, 2010. Tax preparers will need to register with the IRS and obtain a valid PTIN no later than December 31, 2010. Tax preparers who already have a PTIN will be reissued their current PTIN when they register online.

Currently, there is no application fee for PTINs; however, the IRS does plan to charge a PTIN fee (new and renewing applicants) once registration starts September 1, 2010.

In addition to the PTIN requirement, paid tax preparers who are not attorneys, certified public accountants or enrolled agents will have to pass an IRS competency exam and complete continuing education requirements. Tax preparers registered with the California Tax Education Council (CTEC) will not be exempt from the new IRS mandate.

Nonexempt tax preparers will be required to:

•Obtain a PTIN.
•Complete 15 hours of continuing education on federal tax laws each year.
•Renew IRS registration every three years from the date of initial registration.
•Within three years of initial registration, pass a competency exam from the IRS.
Starting January 1, 2011, nonexempt tax preparers who fail to meet the December 31, 2010 registration deadline will have to pass the IRS competency exam before they can be issued a PTIN.

Exempt tax preparers (attorneys, certified public accountants and enrolled agents) can still register after December 31, 2010; however, they cannot prepare or sign federal tax returns until they register with the IRS and obtain a valid PTIN.

From CTEC oversight

What if I live outside of California, but I prepare California tax returns?

The law is limited to overseeing tax preparers who are preparing state and federal tax returns for a fee within the State of California. Out-of-state tax preparers are not obligated to meet California requirements.

What if I only plan to prepare federal tax returns for a fee? Do I still need to register with CTEC?

Yes, anyone who prepares federal and state tax returns for a fee within the State of California must be either an attorney, CPA, CRTP or EA.

If you are inquiring about the mandatory efile, that is also easy, should be in your software for a Calif Opt Out. Individual Form 8454, Business Returns are not mandatory for efile


Appleman, was posting at the same time as I was, and his answer is way shorter, but You should be good to go!

Sandy