SB 788: Tax preparers: exemptions.

Existing law establishes the California Board of Accountancy, which is within the Department of Consumer Affairs, and requires the board to license and regulate accountants in this state.

Existing law, the Tax Preparation Act, provides for the registration and regulation of tax preparers by the California Tax Education Council. The act requires a tax preparer to register with the California Tax Education Council and, among other things, requires a tax preparer to provide specified written disclosures to a client in connection with tax preparation services. Existing law exempts certain persons from these requirements, including, among others, a person with a current and valid license issued by the California Board of Accountancy.

This bill would instead exempt an individual with a current and valid license issued by the board, as described above. The bill would additionally exempt an individual who is authorized to practice public accountancy pursuant to specified law and a firm, including the firms partners, shareholders, owners, or employees, provided the firm has a current and valid license issued by the board. The bill would apply these changes to tax returns prepared for taxable years beginning on or after January 1, 2025.