California tax prepare license verification

Out-of-State Licensed CPAs An individual, whose principal place of business is not in California and who has a valid and current license to practice public accountancy from another state, may, with limited exceptions, engage in the practice of public accountancy in California without obtaining a California license.

In order for the individual to qualify for practice privilege, the out-of-state licensed CPA must satisfy one of the following: Have continually practiced public accountancy as a CPA in another state for at least four of the last 10 years Come from a state listed in CBA Regulations section 5.

Individually possess education, examination, and experience qualifications for licensure that the CBA has determined to be substantially equivalent to its own licensure requirements found in Business and Professions Code section List of events that would require an individual to seek approval prior to practicing in California List of events that would require an individual to cease practice in California List of disqualifying conditions that can lead to the revocation of a practice privilege If after performing a search of CBA records on an out-of-state license CPA you receive information that indicates no results are available, this does not mean that the individual is not authorized to practice public accountancy in California.

Out-of-State Registered Accounting Firms To perform certain services for a California-headquarted entity, an out-of-state accounting firm must first register with the CBA. The specific services that first require registration with the CBA include the following: An audit or review of a financial statement A compilation of a financial statement when it is expected, or reasonably might be expected, that a third party will use the financial statement and the compilation report does not disclose a lack of independence.

An examination of prospective financial information. Connect with the CBA. Want your listing to be seen by more clients? What is a CPA? What is an Enrolled Agent? What is a Tax Attorney? Can All Attorneys Prepare Returns? If the business you are buying has more than one location and you are buying one or more locations but not all , you should request a clearance for each location. If the business you are buying has more than one location and you are buying all the locations, only one clearance is needed.

If you are buying a business through an escrow company, you should ensure that the company requests the certificate of clearance on your behalf. It is important to remember that if taxes are owed by the current owner and escrow closes without a certificate of tax clearance, you may be held liable for unpaid taxes for the amount up to the purchase price for the business, which includes any assumption of indebtedness.

If the CDTFA does not issue the certificate of tax clearance described in 1, you are required to withhold enough of the purchase price of the business to cover any amount owed to the CDTFA until the former owner produces:. If the CDTFA has provided you with a certificate of tax clearance for the business, you are no longer legally required to set aside funds to cover unpaid sales and use taxes. A new permit would be required to show you as the correct owner. You will need to provide the same information required of all seller's permit applicants.

See Obtaining a Seller's Permit. You must let us know in writing of your intention to close or sell your business. You may satisfy this requirement by providing the information requested on Form CDTFA, Notice of Close-Out, and returning the completed form, your permit and other required documentation to the office that handles your account. If you made a cash or interest-bearing security deposit to the CDTFA when you obtained your seller's permit, the entire deposit or any unused portion will be returned to you depending on whether any taxes remain to be paid.

If you do not notify the CDTFA when you sell your business or stock of goods, you may be liable for taxes, interest, and penalties incurred by the purchaser or successor. Timely notification to the CDTFA could help limit the personal liability of partners for taxes, penalties, and interest charges that are incurred after the partnership change. You should let us know of the change in writing. Publishing this information in a newspaper or notifying another state agency is not sufficient notice to the CDTFA.

If your name is on the seller's permit with your spouse and you withdraw from ownership of the business, you should let us know of the change in writing. A legal separation or divorce decree awarding the business to one spouse, without written notification to the CDTFA, is not sufficient notice. If a corporation or limited company is dissolved, terminated, or abandoned, you may be held liable for any unpaid taxes, interest and penalties if:.

Not necessarily. You are liable only for taxes, interest, and penalties owed for the period of time for which you were responsible for the filing of returns or for compliance with the Sales and Use Tax Law.

How do I register for a permit, license, or account? New Permit Holders — There are many things you need to know during your first year in business. Sub-locations — Businesses that have a seller's permit, license, or an account and are expanding their operations to a new area may need to add a new location to their account.