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 |Add To My Favorites |Track Bill | Version: 10/03/25 - Chaptered
 09/08/25 - Enrolled
 04/30/25 - Amended Senate
 03/24/25 - Amended Senate
 02/21/25 - Introduced

 SB-788 Tax preparers: exemptions.(2025-2026)

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 Date Published: 10/06/2025 02:00 PM

SB788:v95#DOCUMENTBill Start

 Senate Bill

 No. 788

 CHAPTER 329

 An act to amend Section 22258 of the Business and Professions Code, relating to business. 

 [
 Approved by

 Governor
 October 03, 2025.

 Filed with

 Secretary of State
 October 03, 2025.
 ]

LEGISLATIVE COUNSEL'S DIGEST

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.

Digest Key

 Vote:
 MAJORITY 
 Appropriation:
 NO 
 Fiscal Committee:
 YES 
 Local Program:
 NO 

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Section 22258 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 1 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 1 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 10 of Title 31 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 ei