CTEC California Registered Tax Preparer
(CRTP) Qualifying Exam Prep | Verified Q&A
Bundle CTEC Regulatory Rules, Ethics, and
California Compliance
1. To maintain an active registration with the California Tax Education Council (CTEC),
a California Registered Tax Preparer (CRTP) must complete how many hours of
continuing education (CE) annually?
A) 15 hours
B) 20 hours, consisting of 15 hours of federal tax law/updates and 5 hours of
California state tax law
C) 30 hours, focusing entirely on small business deductions
D) 10 hours, strictly related to tax ethics and fraud
CTEC requires CRTPs to complete 20 hours of continuing education every year
between November 1 and October 31. The 20 hours must include 10 hours of
federal tax law, 3 hours of federal tax law updates, 2 hours of ethics, and 5 hours of
California state tax law.
2. A tax preparer fails to renew their CTEC registration by the October 31 deadline but
continues to prepare taxes for a fee during the late renewal period. What penalty can
the California Franchise Tax Board (FTB) impose for preparing taxes without an
active registration?
A) A minor verbal warning.
B) A penalty of $2,500 for the first violation, increasing to $5,000 for
subsequent violations.
, C) A flat $100 fine attached to their next personal tax return.
D) Immediate suspension of their personal driver's license.
The Franchise Tax Board (FTB) enforces California law regarding unregistered tax
preparers. Under California Business and Professions Code, the FTB can issue a
citation and fine of $2,500 for the first offense of preparing taxes for a fee without a
valid CTEC registration.
3. Under CTEC guidelines, a CRTP must obtain and maintain a surety bond in what
face amount to legally protect consumers against fraud or misrepresentation?
A) $5,000
B) $10,000
C) $25,000
D) $50,000
To register or renew with CTEC, a tax preparer must maintain a valid tax preparer
surety bond in the amount of $25,000. This bond protects consumers from financial
damage caused by fraud, dishonesty, or professional misconduct. [1, A tax preparer
completes a federal return for a California resident and fails to sign the return as the
paid preparer or include their Preparer Tax Identification Number (PTIN). What is the
status of this action under IRS rules?
A) It is permissible if the client gives verbal consent.
B) It is a violation of Circular 230 and IRS rules, exposing the preparer to
monetary penalties per missing signature.
C) It is only required if the client is receiving a refund exceeding $10,000.
D) It is optional for returns generated electronically.
The IRS requires all paid tax preparers to sign the returns they prepare and include
a valid Preparer Tax Identification Number (PTIN). Failure to do so violates Internal
Revenue Code Section 6695 and can lead to financial penalties for each omission
, 4. Which of the following professionals is explicitly exempt from having to register with
CTEC to legally prepare income tax returns for a fee in California?
A) An unlicensed bookkeeper with 10 years of experience.
B) A California licensed Certified Public Accountant (CPA) or an active member
of the State Bar of California.
C) A college graduate with a degree in finance.
D) A notary public who specializes in real estate transactions.
California law exempts specific individuals from CTEC registration requirements
because they are already regulated by other boards. Exempt individuals include
California CPAs, California attorneys, IRS Enrolled Agents (EAs), and certain trust
company or banking employees.
Filing Statuses and Dependents
6. A taxpayer’s spouse passed away on May 15, 2025. The taxpayer has not remarried
and maintains a home for a 10-year-old dependent child. Which filing status should
the taxpayer use when preparing their 2025 tax return?
A) Single
B) Head of Household
C) Married Filing Jointly
D) Qualifying Surviving Spouse
For the tax year in which a spouse dies, the surviving spouse can still file as Married
Filing Jointly (assuming they were eligible to do so before the death). For the two
years following the year of death, they may qualify for the Qualifying Surviving
Spouse (formerly Qualifying Widow/er) status if they maintain a household for a
dependent child.
, 7. To claim Head of Household filing status, an unmarried taxpayer must pay more than
what percentage of the costs of keeping up a home for a qualifying person for more
than half the year?
A) 25%
B) 50%
C) 75%
D) 100%
To qualify for Head of Household status, a taxpayer must be unmarried or
considered unmarried on the last day of the tax year, pay more than 50% of the cost
of keeping up a home for the year, and have a qualifying person live with them for
more than half the year.
8. Under the rules for a Qualifying Child dependent, what is the maximum age limit for
a child who is not a full-time student, assuming they are younger than the taxpayer?
A) Under age 17
B) Under age 19
C) Under age 24
D) There is no age limit if the child lives at home.
To be a Qualifying Child, the child must be under age 19 at the end of the year, or
under age 24 if they are a full-time student for at least five months of the year.
Permanent and totally disabled children are exempt from the age test.
9. A taxpayer provides 60% of the financial support for their 72-year-old mother, who
lives in her own apartment and has a gross income of $3,500 for the year. Can the
taxpayer claim the mother as a dependent?
A) No, because the mother does not live in the taxpayer's home.
B) Yes, as a Qualifying Relative, because the support test is met and her gross
income is under the statutory limit.
(CRTP) Qualifying Exam Prep | Verified Q&A
Bundle CTEC Regulatory Rules, Ethics, and
California Compliance
1. To maintain an active registration with the California Tax Education Council (CTEC),
a California Registered Tax Preparer (CRTP) must complete how many hours of
continuing education (CE) annually?
A) 15 hours
B) 20 hours, consisting of 15 hours of federal tax law/updates and 5 hours of
California state tax law
C) 30 hours, focusing entirely on small business deductions
D) 10 hours, strictly related to tax ethics and fraud
CTEC requires CRTPs to complete 20 hours of continuing education every year
between November 1 and October 31. The 20 hours must include 10 hours of
federal tax law, 3 hours of federal tax law updates, 2 hours of ethics, and 5 hours of
California state tax law.
2. A tax preparer fails to renew their CTEC registration by the October 31 deadline but
continues to prepare taxes for a fee during the late renewal period. What penalty can
the California Franchise Tax Board (FTB) impose for preparing taxes without an
active registration?
A) A minor verbal warning.
B) A penalty of $2,500 for the first violation, increasing to $5,000 for
subsequent violations.
, C) A flat $100 fine attached to their next personal tax return.
D) Immediate suspension of their personal driver's license.
The Franchise Tax Board (FTB) enforces California law regarding unregistered tax
preparers. Under California Business and Professions Code, the FTB can issue a
citation and fine of $2,500 for the first offense of preparing taxes for a fee without a
valid CTEC registration.
3. Under CTEC guidelines, a CRTP must obtain and maintain a surety bond in what
face amount to legally protect consumers against fraud or misrepresentation?
A) $5,000
B) $10,000
C) $25,000
D) $50,000
To register or renew with CTEC, a tax preparer must maintain a valid tax preparer
surety bond in the amount of $25,000. This bond protects consumers from financial
damage caused by fraud, dishonesty, or professional misconduct. [1, A tax preparer
completes a federal return for a California resident and fails to sign the return as the
paid preparer or include their Preparer Tax Identification Number (PTIN). What is the
status of this action under IRS rules?
A) It is permissible if the client gives verbal consent.
B) It is a violation of Circular 230 and IRS rules, exposing the preparer to
monetary penalties per missing signature.
C) It is only required if the client is receiving a refund exceeding $10,000.
D) It is optional for returns generated electronically.
The IRS requires all paid tax preparers to sign the returns they prepare and include
a valid Preparer Tax Identification Number (PTIN). Failure to do so violates Internal
Revenue Code Section 6695 and can lead to financial penalties for each omission
, 4. Which of the following professionals is explicitly exempt from having to register with
CTEC to legally prepare income tax returns for a fee in California?
A) An unlicensed bookkeeper with 10 years of experience.
B) A California licensed Certified Public Accountant (CPA) or an active member
of the State Bar of California.
C) A college graduate with a degree in finance.
D) A notary public who specializes in real estate transactions.
California law exempts specific individuals from CTEC registration requirements
because they are already regulated by other boards. Exempt individuals include
California CPAs, California attorneys, IRS Enrolled Agents (EAs), and certain trust
company or banking employees.
Filing Statuses and Dependents
6. A taxpayer’s spouse passed away on May 15, 2025. The taxpayer has not remarried
and maintains a home for a 10-year-old dependent child. Which filing status should
the taxpayer use when preparing their 2025 tax return?
A) Single
B) Head of Household
C) Married Filing Jointly
D) Qualifying Surviving Spouse
For the tax year in which a spouse dies, the surviving spouse can still file as Married
Filing Jointly (assuming they were eligible to do so before the death). For the two
years following the year of death, they may qualify for the Qualifying Surviving
Spouse (formerly Qualifying Widow/er) status if they maintain a household for a
dependent child.
, 7. To claim Head of Household filing status, an unmarried taxpayer must pay more than
what percentage of the costs of keeping up a home for a qualifying person for more
than half the year?
A) 25%
B) 50%
C) 75%
D) 100%
To qualify for Head of Household status, a taxpayer must be unmarried or
considered unmarried on the last day of the tax year, pay more than 50% of the cost
of keeping up a home for the year, and have a qualifying person live with them for
more than half the year.
8. Under the rules for a Qualifying Child dependent, what is the maximum age limit for
a child who is not a full-time student, assuming they are younger than the taxpayer?
A) Under age 17
B) Under age 19
C) Under age 24
D) There is no age limit if the child lives at home.
To be a Qualifying Child, the child must be under age 19 at the end of the year, or
under age 24 if they are a full-time student for at least five months of the year.
Permanent and totally disabled children are exempt from the age test.
9. A taxpayer provides 60% of the financial support for their 72-year-old mother, who
lives in her own apartment and has a gross income of $3,500 for the year. Can the
taxpayer claim the mother as a dependent?
A) No, because the mother does not live in the taxpayer's home.
B) Yes, as a Qualifying Relative, because the support test is met and her gross
income is under the statutory limit.
