The four, side by side
| Credential | Regulated by | Can prepare returns | Can represent you before the IRS |
|---|---|---|---|
| CRTP CTEC-registered tax preparer |
CTEC (California) | Yes | No, unless they hold an AFSP record or a CPA, enrolled agent or attorney credential. An AFSP record allows representation only for returns they prepared and signed, before revenue agents, customer service representatives, and similar IRS employees, including the Taxpayer Advocate Service, and never for appeals or collection. Returns prepared and filed on or before December 31, 2015 are an exception to the no-authority rule. |
| CPA Certified public accountant |
California Board of Accountancy | Yes | Yes, unlimited |
| EA Enrolled agent |
IRS (federal) | Yes | Yes, unlimited |
| Attorney | State Bar of California | Yes | Yes, unlimited |
CPAs, enrolled agents and attorneys are exempt from CTEC registration — their own licensing bodies already regulate them. That exemption is why “they’re not on the CTEC list” is not automatically a red flag, provided they actually hold one of those other credentials and you have checked it.
What a CRTP has to do to register
Becoming a CTEC-registered tax preparer requires a 60-hour qualifying education course from a CTEC-approved provider, completed before registering. It also requires a Preparer Tax Identification Number from the IRS, a $5,000 tax preparer surety bond, and a background check. To stay registered, a CRTP must complete 20 hours of continuing education each year through a CTEC-approved education provider.
The surety bond matters to you specifically: CTEC says it protects taxpayers from fraud, and California law makes it available to any person damaged by a preparer’s fraud, dishonesty, misstatement, misrepresentation, deceit, or unlawful acts or omissions by the tax preparer.
Which one do you actually need?
A straightforward return
Wages, a bit of interest, the standard deduction. A CRTP is designed for exactly this and will usually cost the least.
Self-employment or rentals
More judgement calls, more ways to get it wrong. A CPA or EA is often worth the higher fee.
You are being audited
You want unlimited representation rights: CPA, enrolled agent or attorney.
Disputes, liability or fraud exposure
A CPA, enrolled agent or attorney. Under IRC 7525, a CPA or enrolled agent also gets a federal confidentiality privilege for tax advice in noncriminal tax matters before the IRS and in noncriminal tax proceedings in federal court brought by or against the United States, generally to the same extent as communications with an attorney. The taxpayer must assert it; it does not arise automatically.