20250SB__078895CHP INTRODUCED 2025-02-21 AMENDED_SENATE 2025-03-24 AMENDED_SENATE 2025-04-30 PASSED_ASSEMBLY 2025-09-04 PASSED_SENATE 2025-06-03 ENROLLED 2025-09-08 CHAPTERED 2025-10-03 APPROVED 2025-10-03 FILED 2025-10-03 2025 SB CHP CHP 0 Introduced by Senator Niello LEAD_AUTHOR SENATE Niello

An act to amend

Section of the Business and Professions Code, relating to business. business 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. MAJORITY NO YES NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION 1.

Section of the Business and Professions Code is amended to read: 22258. (

a) The following persons are exempt from the requirements of this title, subject to the requirements of subdivision (b):

(1) An individual with a current and valid license issued by the California Board of Accountancy, or authorized to practice public accountancy pursuant to

Article 5.1 (commencing with

Section 5096) of

Chapter of Division 3.

(2) A firm, including the firm’s partners, shareholders, owners, or employees, provided the firm has a current and valid license issued by the California Board of Accountancy.

(3) A person who is an active member of the State Bar of California.

(4) Any trust company or trust business as defined in

Chapter 1 (commencing with

Section 99) of Division of the Financial Code.

(5) A financial institution regulated by the state or federal government, insofar as the activities of the financial institution with respect to tax preparation are subject to federal or state examination or oversight.

(6) A person who is enrolled to practice before the Internal Revenue Service pursuant to Subpart A (commencing with

Section 10.1) of Part of Title of the Code of Federal Regulations.

(7) Any employee of any person described in paragraph (1), (2), (3), (4), (5), or (6), while functioning within the scope of that employment, insofar that the employee is supervised by a person exempt under this subdivision who reviews the return, signs it, and is responsible for its content.

(8) Any employee of any corporation, partnership, association, or any entity described in subparagraph (

B) of paragraph (1) of subdivision (

a) of

Section 22251. (b)

(1) Except for employees of entities described in paragraph (4) or (5) of subdivision (a), paragraph (7) of subdivision (

a) shall apply only if all tax returns prepared by that employee are signed by a person described in paragraph (1), (2), (3), or (6) of subdivision (a). (2) Paragraph (8) of subdivision (

a) shall apply only if all tax returns prepared by that employee are signed by the person described in paragraph (8) of subdivision (a).

(3) No person described in this subdivision as an employee may sign a tax return, unless that employee is otherwise exempt under this section, is registered as a tax preparer with the council, or is an employee of either a trust company or trust business described in paragraph (4) of subdivision (a), or any employee of a financial institution described in paragraph (5) of subdivision (a). (

c) For purposes of this section, preparation of a tax return includes the inputting of tax data into a computer. (

d) The amendments made to this

section by the act adding this subdivision shall apply to tax returns prepared for taxable years beginning on or after January 1, 2025.