Most states require nothing beyond the federal PTIN. But a handful have their own registration, education, or licensing requirements. Here’s where things stand.
California
Non-exempt preparers must register with the California Tax Education Council (CTEC) as Certified Registered Tax Preparers. Requirements include a 60-hour qualifying education course, a $5,000 surety bond, a background check, and annual renewal with 20 hours of continuing education.
Oregon
Oregon is the only state that formally licenses tax preparers. The two-tier system includes Licensed Tax Preparer (works under supervision) and Licensed Tax Consultant (practices independently). Both tiers require at least 80 hours of education, passage of a state exam, and 30 hours of annual continuing education.
Maryland
Non-exempt preparers must pass the Maryland Tax Preparers Examination and register with the Board of Individual Tax Preparers. Biennial renewal requires 16 hours of continuing education.
New York
Commercial preparers (those who prepare ten or more New York returns) must register annually with the Department of Taxation and Finance, pay a $100 fee, and complete a 16-hour qualifying education course for first-time registrants. Annual continuing education of 4 hours is required thereafter.
Other States
Connecticut and Nevada have registration requirements of varying scope, but neither requires education or testing comparable to the four states listed above. Illinois has an identification number requirement.
All Other States
At the time of writing, the remaining states have no state-level registration, licensing, or education requirements for non-credentialed tax return preparers beyond the federal PTIN.
The Trend
The direction is toward more regulation, not less. Federal legislation pending in Congress would authorize minimum competency standards for all paid preparers. Whether or not those bills pass, state-level initiatives continue to expand. Prepare as though regulation is coming.
For state-specific guidance and a full compliance framework, visit musespring.com.