Tax Preparer Bonds

What is a tax preparer bond?

A tax preparer surety bond assures the public that if a claim is filed against a tax preparer, the surety company will compensate the customer up to the value of the bond. The intent of this type of surety bond is to protect the public against fraud, misrepresentation, negligence, theft, or deceit by the tax preparer. The cost of a tax preparer bond can either be a flat rate or small percentage of the bond value, depending on the surety company you work with.

How much does a tax preparer bond cost?

Tax preparer bond costs will vary depending on state regulations requiring the bonds. California tax preparers can purchase a bond from NNA Surety Bonds for an annual premium of $25, issued immediately, with no credit check required. Nevada tax preparer bonds require a credit check, and the premiums will vary by company depending on the number of tax preparers working for that company.

If you are ready to purchase your tax preparer bond, contact NNA Surety Bonds at 855-968-1209 or fill out the quote request form.

How can I get a tax preparer bond?

You can purchase a tax preparer bond by contacting us.

Depending on your state's bond requirements, you can expect to receive your bond electronically shortly after payment and receipt of your contact information.

How do I become a tax preparer?

According to the Internal Revenue Service (IRS), any tax professional with an IRS Preparer Tax Identification Number (PTIN) is authorized to prepare tax returns. However, tax preparers can either have unlimited representation rights or limited representation rights based on training and certifications.

Individuals with unlimited representation rights include:

Enrolled agents (EAs) licensed by the IRS
Certified public accountants (CPAs)
Attorneys

Annual filing season participants and PTIN holders without the previously stated titles have limited representation rights.

In most states, the only requirements to be termed a tax preparer are proven ability and knowledge, technology to complete the process, and the required PTIN.

Some states do have specific requirements and certifications if you are not already a CPA or hold other professional credentials.

Those states include:

Why do I need a tax preparer bond?

Your state may require you to get bonded as part of the licensing or registration process to become a tax preparer. California and Nevada are the only two states currently requiring tax preparers to get bonded. However, a surety bond should be considered solid business practice for you as a tax preparer and in the eyes of the public. Getting bonded provides customers ease of mind, knowing they will be compensated should they file a claim against your bond for any intentional or unintentional wrongdoing on your part.

What else should I know about tax preparer bonds?

Because CPAs and EAs must complete and pass rigorous licensing exams and are held highly accountable to the IRS, they are not required to get bonded.

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