Tax preparers: exemptions.

Education Labor Taxes

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Niello
Last action: 2025-10-03
Official status: Chaptered by Secretary of State. Chapter 329, Statutes of 2025.
Effective date: Not listed

Plain English Breakdown

The official source does not provide specific details on enforcement mechanisms or monitoring of these exemptions.

Tax Preparers: Exemptions

This law exempts certain tax preparers with specific licenses from the California Board of Accountancy from registration and disclosure requirements under the Tax Preparation Act.

What This Bill Does

Exempts individuals with a current and valid license issued by the California Board of Accountancy from registration and disclosure requirements for tax preparation services.
Adds exemptions for individuals authorized to practice public accountancy under specified laws.
Includes firms, including their partners, shareholders, owners, or employees, if the firm has a current and valid license issued by the board.

Who It Names or Affects

Tax preparers with licenses from the California Board of Accountancy
Individuals authorized to practice public accountancy under specific laws
Firms that have a valid license from the California Board of Accountancy

Terms To Know

California Board of Accountancy: A state agency within the Department of Consumer Affairs responsible for licensing and regulating accountants.
Tax Preparation Act: The law that regulates tax preparers in California, requiring them to register with the California Tax Education Council and provide certain disclosures to clients.

Limits and Unknowns

Does not specify what happens for tax returns prepared before January 1, 2025.
Does not explain how exemptions will be enforced or monitored.

Bill History

2025-10-03 California Legislative Information
Chaptered by Secretary of State. Chapter 329, Statutes of 2025.
2025-10-03 California Legislative Information
Approved by the Governor.
2025-09-10 California Legislative Information
Enrolled and presented to the Governor at 2 p.m.
2025-09-04 California Legislative Information
In Senate. Ordered to engrossing and enrolling.
2025-09-04 California Legislative Information
Read third time. Passed. (Ayes 77. Noes 0. Page 2904.) Ordered to the Senate.
2025-07-10 California Legislative Information
Read second time. Ordered to third reading.
2025-07-09 California Legislative Information
From committee: Do pass. (Ayes 15. Noes 0.) (July 9).
2025-06-24 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 16. Noes 0.) (June 24). Re-referred to Com. on APPR.
2025-06-09 California Legislative Information
Referred to Com. on B. & P.
2025-06-04 California Legislative Information
In Assembly. Read first time. Held at Desk.
2025-06-03 California Legislative Information
Read third time. Passed. (Ayes 38. Noes 0. Page 1441.) Ordered to the Assembly.
2025-05-13 California Legislative Information
Read second time. Ordered to third reading.
2025-05-12 California Legislative Information
From committee: Be ordered to second reading pursuant to Senate Rule 28.8.
2025-05-02 California Legislative Information
Set for hearing May 12.
2025-04-30 California Legislative Information
Read second time and amended. Re-referred to Com. on APPR.
2025-04-29 California Legislative Information
From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 0. Page 917.) (April 28).
2025-04-03 California Legislative Information
Set for hearing April 28.
2025-04-02 California Legislative Information
Re-referred to Com. on B. P. & E.D.
2025-03-24 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.
2025-03-12 California Legislative Information
Referred to Com. on RLS.
2025-02-24 California Legislative Information
Read first time.
2025-02-24 California Legislative Information
From printer. May be acted upon on or after March 24.
2025-02-21 California Legislative Information
Introduced. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 788, Niello.
Tax preparers: exemptions.
Existing law establishes the California Board of Accountancy, which is within the Department of Consumer Affairs, and requires the board to license and regulate accountants in this state.
Existing law, the Tax Preparation Act, provides for the registration and regulation of tax preparers by the California Tax Education Council. The act requires a tax preparer to register with the California Tax Education Council and, among other things, requires a tax preparer to provide specified written disclosures to a client in connection with tax preparation services. Existing law exempts certain persons from these requirements, including, among others, a person with a current and valid license issued by the California Board of Accountancy.
This bill would
instead exempt an individual with a current and valid license issued by the board, as described above. The bill would additionally exempt an individual who is authorized to practice public accountancy pursuant to specified law and a firm, including the firm’s partners, shareholders, owners, or employees, provided the firm has a current and valid license issued by the board. The bill would apply these changes to tax returns prepared for taxable years beginning on or after January 1,
2025.

Current Bill Text

Read the full stored bill text

Download Bill PDF