BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 484
                                                                  Page  1

          Date of Hearing:   August 14, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     SB 484 (Wyland) - As Amended:  May 6, 2013 

          Policy Committee:                             Business and  
          Professions  Vote:                            10 - 2

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill revises the composition of the California Tax  
          Education Council (CTEC), authorizes the CTEC to deny, suspend  
          or revoke a tax preparer registration for specified violations,  
          and makes other related changes to the law relating to tax  
          preparers.

           FISCAL EFFECT  

          Costs associated with this legislation should be minor and  
          absorbable within existing resources. 

           COMMENTS  

           1)Purpose  . Currently, CTEC does not have the authority to  
            discipline a registered tax preparer if they are convicted of  
            fraud or similar criminal offenses related to their  
            profession.  While CTEC has the discretion to change a tax  
            preparer's registration status if they do not pay their annual  
            fees or complete their education requirements, it does not  
            have the ability to discipline or revoke the registration of  
            preparers guilty of unprofessional conduct or convicted of  
            criminal offenses related to the scope of their profession.  
            This bill would provide the CTEC with the authority to revoke,  
            suspend or deny a tax preparer's registration under specified  
            circumstances. 

           2)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 CTEC.  Exempt preparers are certified  
            public accountants, enrolled agents, attorneys who are members  








                                                                  SB 484
                                                                  Page  2

            of the State Bar of California, and certain specified banking  
            or trust officials.

            CTEC is a nonprofit corporation that serves to register and  
            oversee professional tax preparers in California.  Certified  
            tax preparers must be officially registered with the CTEC,  
            which consists of an application, annual fee, payment of a  
            bond, and completion of education requirements.  Tax preparers  
            are permitted to file individual tax forms for consumers and  
            are required to use their CTEC tax preparer identification  
            number when doing so.

            There are nearly 40,000 registered tax preparers in  
            California, and the CTEC provides information regarding which  
            tax preparers are registered and legally permitted to prepare  
            taxes.  Consumers are able to confirm via the CTEC that their  
            tax preparer is registered.


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081