CTEC Tax Preparer Exam 2026: 129 Actual Questions with
Verified Answers & Rationales (California Tax Education
Council)LATEST UPDATE THIS YEAR.pdf
Exam Overview:
The California Tax Education Council (CTEC) exam is required for non-exempt paid tax
preparers in California. To become a CTEC Registered Tax Preparer (CRTP), candidates
must complete a 60-hour qualifying education course and pass the final exam with a score
of 70% or higher . The exam covers federal and California state tax law, ethics, professional
standards, CTEC registration requirements, and practical tax preparation procedures .
SECTION 1: CTEC REGISTRATION & COMPLIANCE (Questions 1-30)
Q1. Who is required to register with CTEC?
Answer: Non-exempt paid tax preparers who prepare tax returns for a fee in California.
Rationale: CTEC registration is mandatory for individuals who prepare taxes for a fee and
are not exempt as an attorney, CPA, or Enrolled Agent .
Q2. Which individuals are NOT required to register with CTEC?
Answer: CPAs, Enrolled Agents, and attorneys who are members of the California State
Bar are exempt from CTEC registration .
Rationale: These professionals are subject to their own professional disciplinary standards
and are not required to register with CTEC .
Q3. What is the minimum education requirement to become a CTEC Registered Tax
Preparer (CRTP)?
Answer: 60 hours of qualifying education.
Rationale: The 60-hour qualifying course consists of 45 hours of Federal Tax Law
(including 2 hours Ethics) and 15 hours of California Tax Law .
,Q4. Within how many months must a new preparer register with CTEC after
completing the 60-hour qualifying course?
Answer: 18 months.
Rationale: New CRTP applicants must register with CTEC within 18 months from the
completion date on their certificate of completion. Failure to do so requires retaking the 60-
hour course .
Q5. What is the minimum penalty an unregistered tax preparer in California faces for
continuing to prepare taxes for a fee?
Answer: $2,500 per violation for the first year; $5,000 per violation for subsequent years.
Rationale: California law authorizes the Franchise Tax Board to impose a penalty of at
least $2,500 for preparing returns without CTEC registration. The fine increases to $5,000
each following year if still not registered .
Q6. What surety bond amount is required for CTEC registration?
Answer: $5,000.
Rationale: California law requires all non-exempt tax preparers to purchase and maintain a
$5,000 tax preparer bond as part of CTEC registration requirements .
Q7. What is the deadline for renewing CTEC registration each year?
Answer: October 31.
Rationale: CTEC registration must be renewed by October 31 of each year. A grace period
extends until January 15, but registration after October 31 incurs a late fee .
Q8. What happens if a CTEC registrant does not renew by January 15?
Answer: They must restart the entire process: 60-hour course, Live Scan, PTIN, and new
bond.
, Rationale: Failure to renew by January 15 requires the preparer to re-complete all initial
registration requirements .
Q9. How many hours of continuing education (CE) are required annually for CTEC
renewal?
Answer: 20 hours.
Rationale: CTEC requires registered tax preparers to complete a minimum of 20 hours of
continuing education each year .
Q10. How are the 20 hours of annual CE distributed?
Answer: 10 hours federal tax law, 3 hours federal tax update, 2 hours ethics, and 5 hours
California tax law.
Rationale: The 20-hour annual CE requirement includes exactly 2 hours of Ethics
education, which is mandatory for all CTEC registrants .
Q11. What does PTIN stand for?
Answer: Preparer Tax Identification Number.
Rationale: PTIN is the unique number assigned by the IRS to identify tax preparers. All tax
preparers must obtain a PTIN before preparing federal returns for a fee .
Q12. How often must a tax preparer renew their PTIN with the IRS?
Answer: Annually.
Rationale: PTINs must be renewed every calendar year through the IRS before a preparer
can legally prepare federal tax returns for compensation .
Q13. What is the IRS fee for obtaining a PTIN?
Answer: $18.75 (for 2025/2026).
Verified Answers & Rationales (California Tax Education
Council)LATEST UPDATE THIS YEAR.pdf
Exam Overview:
The California Tax Education Council (CTEC) exam is required for non-exempt paid tax
preparers in California. To become a CTEC Registered Tax Preparer (CRTP), candidates
must complete a 60-hour qualifying education course and pass the final exam with a score
of 70% or higher . The exam covers federal and California state tax law, ethics, professional
standards, CTEC registration requirements, and practical tax preparation procedures .
SECTION 1: CTEC REGISTRATION & COMPLIANCE (Questions 1-30)
Q1. Who is required to register with CTEC?
Answer: Non-exempt paid tax preparers who prepare tax returns for a fee in California.
Rationale: CTEC registration is mandatory for individuals who prepare taxes for a fee and
are not exempt as an attorney, CPA, or Enrolled Agent .
Q2. Which individuals are NOT required to register with CTEC?
Answer: CPAs, Enrolled Agents, and attorneys who are members of the California State
Bar are exempt from CTEC registration .
Rationale: These professionals are subject to their own professional disciplinary standards
and are not required to register with CTEC .
Q3. What is the minimum education requirement to become a CTEC Registered Tax
Preparer (CRTP)?
Answer: 60 hours of qualifying education.
Rationale: The 60-hour qualifying course consists of 45 hours of Federal Tax Law
(including 2 hours Ethics) and 15 hours of California Tax Law .
,Q4. Within how many months must a new preparer register with CTEC after
completing the 60-hour qualifying course?
Answer: 18 months.
Rationale: New CRTP applicants must register with CTEC within 18 months from the
completion date on their certificate of completion. Failure to do so requires retaking the 60-
hour course .
Q5. What is the minimum penalty an unregistered tax preparer in California faces for
continuing to prepare taxes for a fee?
Answer: $2,500 per violation for the first year; $5,000 per violation for subsequent years.
Rationale: California law authorizes the Franchise Tax Board to impose a penalty of at
least $2,500 for preparing returns without CTEC registration. The fine increases to $5,000
each following year if still not registered .
Q6. What surety bond amount is required for CTEC registration?
Answer: $5,000.
Rationale: California law requires all non-exempt tax preparers to purchase and maintain a
$5,000 tax preparer bond as part of CTEC registration requirements .
Q7. What is the deadline for renewing CTEC registration each year?
Answer: October 31.
Rationale: CTEC registration must be renewed by October 31 of each year. A grace period
extends until January 15, but registration after October 31 incurs a late fee .
Q8. What happens if a CTEC registrant does not renew by January 15?
Answer: They must restart the entire process: 60-hour course, Live Scan, PTIN, and new
bond.
, Rationale: Failure to renew by January 15 requires the preparer to re-complete all initial
registration requirements .
Q9. How many hours of continuing education (CE) are required annually for CTEC
renewal?
Answer: 20 hours.
Rationale: CTEC requires registered tax preparers to complete a minimum of 20 hours of
continuing education each year .
Q10. How are the 20 hours of annual CE distributed?
Answer: 10 hours federal tax law, 3 hours federal tax update, 2 hours ethics, and 5 hours
California tax law.
Rationale: The 20-hour annual CE requirement includes exactly 2 hours of Ethics
education, which is mandatory for all CTEC registrants .
Q11. What does PTIN stand for?
Answer: Preparer Tax Identification Number.
Rationale: PTIN is the unique number assigned by the IRS to identify tax preparers. All tax
preparers must obtain a PTIN before preparing federal returns for a fee .
Q12. How often must a tax preparer renew their PTIN with the IRS?
Answer: Annually.
Rationale: PTINs must be renewed every calendar year through the IRS before a preparer
can legally prepare federal tax returns for compensation .
Q13. What is the IRS fee for obtaining a PTIN?
Answer: $18.75 (for 2025/2026).
