You sign off on their return. The bond backs your registration.
A registration bond for paid tax preparers
Only a few states require paid tax preparers to be bonded as a condition of registration — California's requirement for CTEC-registered preparers is the best known. The bond protects clients against a preparer's fraud or dishonesty and is a condition of being allowed to prepare returns for a fee.
What a tax preparer bond guarantees
The bond protects the preparer's clients — guaranteeing compensation if the preparer acts fraudulently or dishonestly in preparing a return. It is not errors-and-omissions coverage for honest mistakes; it's a consumer-protection guarantee required for registration, and you reimburse the surety for any valid claim.
How much a tax preparer bond costs
The bond amount is set by the licensing authority. The premium you pay is a small percentage of that amount — typically around 1%–3% for applicants with reasonable credit, more for weaker credit — so a modest bond often costs a few hundred dollars a year. We market it to multiple surety companies to get you the best rate. These bonds are typically small (for example, California's $5,000 requirement), so the premium is often very low.
Requirements vary by state
Most states don't require a preparer bond; a few do (California is the prominent example, with a fixed amount for CTEC registration). We confirm whether your state requires one.
Tax Preparer Bond requirements by state
The required amount and authority differ by state — and sometimes by city or county. We are licensed in all 50 states; request a quote and we will confirm the exact requirement that applies to you.
Frequently Asked Questions
What does a tax preparer bond cover?
It covers a client's loss caused by the preparer's fraud or dishonest conduct in preparing a return. It doesn't cover honest errors — that's what E&O insurance is for. You reimburse the surety for any claim paid.
Which states require a tax preparer bond?
California requires a $5,000 bond for CTEC-registered preparers; a few other states have requirements. Most do not. We confirm your state's rule.
How much does a tax preparer bond cost?
Because the required amount is usually small, the premium is often just a modest flat fee — frequently well under $100 for a $5,000 bond with reasonable credit.
How do I get a tax preparer bond through Cory Washington & Co.?
Request a quote or contact our team. We confirm your exact requirement, market your bond across multiple surety companies that compete for it, and handle the filing. Cory Washington & Co. LLC is licensed in all 50 states.
All surety bond descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or bonding advice. Surety bonds are not insurance. Bond requirements — including amounts, obligees, and bond forms — are set by government authorities and other obligees and change over time; the information presented is general in nature and does not guarantee the availability, terms, conditions, or amount of any bond. Actual bond terms are governed by the bond form issued by the surety and the requirements of the obligee, and any bond remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds a surety, or issues a bond. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please confirm current requirements with the relevant authority and consult directly with a licensed professional at Cory Washington & Co. LLC.