Tax preparers: exemptions.
If enacted, SB 788 would allow individuals with valid licenses from the California Board of Accountancy to prepare taxes without additional requirements, which aims to streamline the compliance process for qualified tax preparers. Furthermore, it extends these exemptions to certain firms and professionals such as active members of the State Bar of California and those enrolled to practice before the IRS. The bill's changes would come into effect for tax returns prepared for years beginning on or after January 1, 2025.
Senate Bill 788, introduced by Senator Niello, seeks to amend Section 22258 of the Business and Professions Code concerning the regulation of tax preparers in California. The bill modifies existing law determined by the Tax Preparation Act by expanding the categories of individuals and firms that are exempt from the requirement to register with the California Tax Education Council. This is significant for professionals in the field as it broadens the scope of those permitted to provide tax preparation services without the need for specific registration under the Tax Preparation Act.
The sentiment surrounding SB 788 appears positive among practitioners within the accounting and legal fields, as it potentially reduces regulatory burdens for compliant professionals. Supporters argue that these amendments would simplify the operational requirements for individuals who already possess the necessary qualifications to provide tax services, thereby enhancing efficiency and service delivery in tax preparation.
Notably, while proponents of the bill see it as a beneficial adjustment to current regulations, there may be concerns about the implications for consumer protections and the accountability of unregistered preparers. Questions about how the bill ensures that the quality of tax preparation services is maintained, given the broader exemptions, could generate discussion during legislative processes.