No two words seem to cause more confusion than the difference between a “license” and “registration.” The misunderstanding is by no means limited to CRTPs. It is an ongoing issue with many tax preparers, consumers, government agencies and the list goes on. However, considering the word “registered” is part of the CRTP acronym, it is vital CRTPs understand its difference from a license. Think of it this way: When an officer pulls a driver over for speeding two forms of identification are requested, a license and registration. Obviously, the reason is because those are two separate documents that have different requirements a driver must fulfill. To receive a license, a driver must pass a standardized test by the California Department of Motor Vehicles. To receive a car registration, the driver has to pay a fee and complete certain requirements, all of which do not include a standardized test. The same is true of licensed and registered tax preparers. Only attorneys, certified public accountants (CPAs) and enrolled agents (EAs) are required to pass a
standardized test. CRTPs, on the other hand, do not have a test requirement. CRTPs that had to pass a test to receive CTEC credit should take note that the education provider, not CTEC, administered the test. A standardized test, by definition, would need to be administered by CTEC. Test or no test, CTEC does not have the authority to license, enroll or certify tax preparers. Obtaining a CTEC registration means you have completed the minimum requirements set by the California State
Legislature to prepare tax returns for a fee. You are a CTEC Registered Tax Preparer. So what significance does the CRTP designation hold? Most importantly… - CRTPs are the only tax preparers required by law to obtain a bond to protect clients against fraud.
- CRTPs are California tax preparers. The standards CRTPs are required to follow were designed by the California State Legislature to help protect California taxpayers.
- CRTPs are the only tax preparers required to complete a set amount of education on California tax laws each year.
- CRTPs are the second largest group of professional tax preparers in California next to CPAs.
Help CTEC brand the CRTP designation. Word of mouth is a powerful tool, so use it! Tell your friends and neighbors. Know your designation and the mission of CTEC. Are we not aiming for the same goal? |
