CALIFORNIA TAX EDUCATION COUNCIL (CTEC)
EXAM (FOR TAX PREPARERS) EXAM QUESTIONS
AND CORRECT ANSWERS (VERIFIED ANSWERS)
PLUS RATIONALES 2025/2026 Q&A | INSTANT
DOWNLOAD PDF
1. What is the primary function of the California Tax Education Council
(CTEC)?
A. Enforce tax law violations
B. Register and oversee tax preparers
C. Provide tax refunds
D. Collect California state taxes
CTEC is responsible for registering tax preparers and ensuring they
meet education requirements, not enforcing tax laws or collecting
taxes.
2. Who is required to register with CTEC?
A. Certified Public Accountants
B. Non-exempt paid tax preparers
C. IRS enrolled agents
D. California Franchise Tax Board agents
Anyone who prepares taxes for a fee and is not an attorney, CPA, or
EA must register with CTEC.
3. What must a tax preparer obtain before preparing taxes in California?
A. Taxpayer Identification Number
, B. Preparer Tax Identification Number (PTIN)
C. IRS Authorization Certificate
D. W-9 Form
All paid preparers must have a valid PTIN issued by the IRS.
4. How often must CTEC-registered tax preparers renew their registration?
A. Every 2 years
B. Annually
C. Every 3 years
D. Only once at the beginning
CTEC registration must be renewed annually with proof of continuing
education.
5. What is the minimum number of continuing education hours required for
CTEC renewal?
A. 12 hours
B. 20 hours
C. 10 hours
D. 30 hours
CTEC requires 20 hours of CE: 10 federal tax law, 5 state, 3 ethics, 2
updates.
6. A new tax preparer must complete how many hours of education before
registering?
A. 20 hours
B. 40 hours
C. 60 hours
D. 80 hours
, A 60-hour qualifying education course is required for new CTEC tax
preparers.
7. Which government agency enforces compliance of CTEC preparers in
California?
A. Internal Revenue Service
B. California Secretary of State
C. Franchise Tax Board (FTB)
D. California Board of Accountancy
FTB enforces rules and investigates complaints against CTEC tax
preparers.
8. What is a key requirement to maintain a valid CTEC registration?
A. Complete IRS audits
B. Purchase a $5,000 surety bond
C. Pass a licensing exam every year
D. Maintain an office
California requires tax preparers to post a $5,000 surety bond to
protect clients.
9. How long must a tax preparer retain copies of tax returns or
documentation?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Preparers must retain client records for a minimum of 3 years.
EXAM (FOR TAX PREPARERS) EXAM QUESTIONS
AND CORRECT ANSWERS (VERIFIED ANSWERS)
PLUS RATIONALES 2025/2026 Q&A | INSTANT
DOWNLOAD PDF
1. What is the primary function of the California Tax Education Council
(CTEC)?
A. Enforce tax law violations
B. Register and oversee tax preparers
C. Provide tax refunds
D. Collect California state taxes
CTEC is responsible for registering tax preparers and ensuring they
meet education requirements, not enforcing tax laws or collecting
taxes.
2. Who is required to register with CTEC?
A. Certified Public Accountants
B. Non-exempt paid tax preparers
C. IRS enrolled agents
D. California Franchise Tax Board agents
Anyone who prepares taxes for a fee and is not an attorney, CPA, or
EA must register with CTEC.
3. What must a tax preparer obtain before preparing taxes in California?
A. Taxpayer Identification Number
, B. Preparer Tax Identification Number (PTIN)
C. IRS Authorization Certificate
D. W-9 Form
All paid preparers must have a valid PTIN issued by the IRS.
4. How often must CTEC-registered tax preparers renew their registration?
A. Every 2 years
B. Annually
C. Every 3 years
D. Only once at the beginning
CTEC registration must be renewed annually with proof of continuing
education.
5. What is the minimum number of continuing education hours required for
CTEC renewal?
A. 12 hours
B. 20 hours
C. 10 hours
D. 30 hours
CTEC requires 20 hours of CE: 10 federal tax law, 5 state, 3 ethics, 2
updates.
6. A new tax preparer must complete how many hours of education before
registering?
A. 20 hours
B. 40 hours
C. 60 hours
D. 80 hours
, A 60-hour qualifying education course is required for new CTEC tax
preparers.
7. Which government agency enforces compliance of CTEC preparers in
California?
A. Internal Revenue Service
B. California Secretary of State
C. Franchise Tax Board (FTB)
D. California Board of Accountancy
FTB enforces rules and investigates complaints against CTEC tax
preparers.
8. What is a key requirement to maintain a valid CTEC registration?
A. Complete IRS audits
B. Purchase a $5,000 surety bond
C. Pass a licensing exam every year
D. Maintain an office
California requires tax preparers to post a $5,000 surety bond to
protect clients.
9. How long must a tax preparer retain copies of tax returns or
documentation?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Preparers must retain client records for a minimum of 3 years.
