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
Exam Overview
• Administered by: California Tax Education Council (CTEC)
• Target Audience: Non-exempt paid tax preparers in California
• Qualifying Education: 60 hours (45 hours Federal Tax Law + 15 hours
California Tax Law + 2 hours Ethics)
• Passing Score: 70%
• Key References: IRS Publications, California FTB guidelines, CTEC website,
Circular 230
SECTION I: CTEC REGISTRATION & COMPLIANCE (Questions 1–25)
Question 1
To legally prepare California tax returns for pay, a CRTP must be registered with
,which entity?
A) IRS
B) California Franchise Tax Board (FTB)
C) California Tax Education Council (CTEC)
D) Department of Consumer Affairs
Answer: C
Rationale: CTEC regulates and registers non-credentialed tax preparers in
California. The IRS issues PTINs, but CTEC is the state body responsible for
registration and oversight of non-exempt preparers.
Question 2
Which of the following professionals is NOT required to register with CTEC?
A) CRTP
B) Enrolled Agent
C) CPA
D) Attorney
Answer: A
Rationale: CRTPs must register with CTEC; EAs, CPAs, and attorneys are exempt
because they are regulated by their own professional bodies.
Question 3
What is the minimum education requirement to become a CTEC Registered Tax
Preparer (CRTP)?
A) 40 hours
B) 60 hours
,C) 80 hours
D) 100 hours
Answer: B
Rationale: California requires 60 qualifying education hours, including tax law,
ethics, and updates.
Question 4
How many continuing education (CE) hours are required annually for CTEC
renewal?
A) 10 hours
B) 15 hours
C) 20 hours
D) 40 hours
Answer: C
Rationale: CTEC requires 20 hours of continuing education annually, including 10
hours of federal tax law, 3 hours of federal tax update, 2 hours of ethics, and 5
hours of California tax law.
Question 5
How many hours of ethics training are specifically required for annual CTEC
renewal?
A) 1 hour
B) 2 hours
C) 3 hours
D) 4 hours
, Answer: B
Rationale: The 20-hour annual CE requirement includes exactly 2 hours of ethics
education, which is mandatory for all CTEC registrants.
Question 6
What surety bond amount is required for CTEC registration?
A) $1,000
B) $3,000
C) $5,000
D) $10,000
Answer: C
Rationale: California law requires all non-exempt tax preparers to purchase and
maintain a $5,000 tax preparer surety bond to protect consumers from
misconduct.
Question 7
By what date must CTEC registration be renewed each year?
A) December 31
B) October 31
C) January 15
D) April 15
Answer: B
Rationale: CTEC registration must be renewed by October 31 each year. A grace
period extends until January 15, but registration after October 31 incurs a late fee.
(CTEC) EXAM (FOR TAX PREPARERS)
EXAM QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) PLUS
RATIONALES 2025/2026 Q&A | INSTANT
DOWNLOAD PDF
Exam Overview
• Administered by: California Tax Education Council (CTEC)
• Target Audience: Non-exempt paid tax preparers in California
• Qualifying Education: 60 hours (45 hours Federal Tax Law + 15 hours
California Tax Law + 2 hours Ethics)
• Passing Score: 70%
• Key References: IRS Publications, California FTB guidelines, CTEC website,
Circular 230
SECTION I: CTEC REGISTRATION & COMPLIANCE (Questions 1–25)
Question 1
To legally prepare California tax returns for pay, a CRTP must be registered with
,which entity?
A) IRS
B) California Franchise Tax Board (FTB)
C) California Tax Education Council (CTEC)
D) Department of Consumer Affairs
Answer: C
Rationale: CTEC regulates and registers non-credentialed tax preparers in
California. The IRS issues PTINs, but CTEC is the state body responsible for
registration and oversight of non-exempt preparers.
Question 2
Which of the following professionals is NOT required to register with CTEC?
A) CRTP
B) Enrolled Agent
C) CPA
D) Attorney
Answer: A
Rationale: CRTPs must register with CTEC; EAs, CPAs, and attorneys are exempt
because they are regulated by their own professional bodies.
Question 3
What is the minimum education requirement to become a CTEC Registered Tax
Preparer (CRTP)?
A) 40 hours
B) 60 hours
,C) 80 hours
D) 100 hours
Answer: B
Rationale: California requires 60 qualifying education hours, including tax law,
ethics, and updates.
Question 4
How many continuing education (CE) hours are required annually for CTEC
renewal?
A) 10 hours
B) 15 hours
C) 20 hours
D) 40 hours
Answer: C
Rationale: CTEC requires 20 hours of continuing education annually, including 10
hours of federal tax law, 3 hours of federal tax update, 2 hours of ethics, and 5
hours of California tax law.
Question 5
How many hours of ethics training are specifically required for annual CTEC
renewal?
A) 1 hour
B) 2 hours
C) 3 hours
D) 4 hours
, Answer: B
Rationale: The 20-hour annual CE requirement includes exactly 2 hours of ethics
education, which is mandatory for all CTEC registrants.
Question 6
What surety bond amount is required for CTEC registration?
A) $1,000
B) $3,000
C) $5,000
D) $10,000
Answer: C
Rationale: California law requires all non-exempt tax preparers to purchase and
maintain a $5,000 tax preparer surety bond to protect consumers from
misconduct.
Question 7
By what date must CTEC registration be renewed each year?
A) December 31
B) October 31
C) January 15
D) April 15
Answer: B
Rationale: CTEC registration must be renewed by October 31 each year. A grace
period extends until January 15, but registration after October 31 incurs a late fee.
