The state of California Tax Education Council requires tax preparers to be bonded. There are two types of California Tax Preparer Surety Bonds:
Both of the bonds are issued under Section 22250 of the California Business and Profession Code, which notes that:
“a tax preparer shall maintain a bond issued by a surety company admitted to do business in this state for each individual preparing tax returns for another person. The principal sum of the bond shall be five thousand dollars ($5,000).”
The cost of a tax preparers surety bond is usually $100 for the required five year term. The bonds are readily available and no credit check is required.