California Requires Approved Tax Preparers to File Returns

Taxpayers urged to verify credentials before hiring a tax preparer

Published on Feb. 11, 2026

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California has strict standards for paid tax preparers, requiring them to be either an attorney, certified public accountant, CTEC-registered tax preparer, or IRS enrolled agent. Preparing taxes without the proper credentials is illegal in the state and can result in penalties of up to $5,000. Taxpayers are ultimately responsible for everything reported on their tax return, so it's important to choose a qualified preparer and watch out for red flags like guaranteed refunds, unsigned returns, and suspicious fees.

Why it matters

Tax season is a vulnerable time for many Californians, and choosing the right tax preparer is crucial to avoid scams, fraud, and personal financial risks. The California Tax Education Council (CTEC) aims to protect taxpayers by enforcing state laws and educating the public on how to identify qualified preparers.

The details

California law requires anyone who prepares tax returns for a fee to be either an attorney with the State Bar of California, certified public accountant (CPA) with the California Board of Accountancy, CTEC-registered tax preparer (CRTP), or IRS enrolled agent (EA). Preparing taxes without the proper credentials is illegal in California and can result in penalties of up to $5,000 from the California Franchise Tax Board (FTB). Even though professional tax preparers are required to sign the returns they prepare, taxpayers are ultimately responsible for everything reported on their tax return.

  • Tax season is here in 2026.

The players

California Tax Education Council (CTEC)

A state-mandated nonprofit organization that registers almost 40,000 tax preparers statewide and aims to protect taxpayers from fraud and unqualified tax preparers.

Fernando Angell

The chair of the California Tax Education Council (CTEC).

California Franchise Tax Board (FTB)

The enforcement arm of CTEC that can impose penalties of up to $5,000 for preparing taxes without the proper credentials.

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What they’re saying

“When people are stressed about taxes, it's all too easy to fall for promises that seem too good to be true. Unfortunately, that's exactly how many scams begin.”

— Fernando Angell, Chair, California Tax Education Council (PRNewswire)

“If they base anything where they get a piece of your refund, that is a red flag.”

— Fernando Angell, Chair, California Tax Education Council (PRNewswire)

What’s next

The California Franchise Tax Board (FTB) will be actively enforcing the state's tax preparer requirements during the 2026 tax season, issuing penalties of up to $5,000 for any violations.

The takeaway

Californians must be vigilant in verifying the credentials of their tax preparers to avoid falling victim to scams and ensure their personal and financial information is protected. The California Tax Education Council provides resources to help taxpayers identify qualified professionals and report any suspicious activity.