2020-37: AB 1140, CTEC disclosure requirements, dead for now - Spidell

2020-37: AB 1140, CTEC disclosure requirements, dead for now


Assemblymember Stone, author of AB 1140, has shelved the bill and will no longer be moving this legislation along. However, it’s not out of the realm of possibility that we will see this bill again in the future.

AB 1140 would have required CTEC-registered tax preparers (but not CPAs, lawyers, or enrolled agents) to:

  • Disclose their “usual and customary” tax preparation fees up front to clients;
  • Refer taxpayers who may be eligible for the Earned Income Tax Credit (EITC) to free tax preparation services; and
  • Provide written disclosure of the tax preparation fees actually charged.

A penalty equal to $750 would have been imposed against repeat violators.

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