Tax preparers: exemptions.

The amendment to Section 22250 (which established the name 'Tax Preparation Act' for the chapter) was removed entirely. The bill now only amends Section 22258.

Paragraph (1) of the exemption list now includes 'Article 5.1 (commencing with Section 5096) of Chapter 1 of Division 3' as an additional statutory basis for being authorized to practice public accountancy, expanding who qualifies for the exemption.

The first exemption category changed from 'A person with a current and valid license' to 'An individual with a current and valid license,' narrowing the terminology slightly in the Board of Accountancy license pathway.

The fiscal committee designation changed from 'no' to 'yes,' indicating the bill now carries a recognized state fiscal impact requiring fiscal committee review.

In Section 22258(a)(1), changed 'A person' to 'An individual' with a current and valid Board of Accountancy license, narrowing the exemption to natural persons rather than any legal person (which could include entities).

In Section 22258(a)(1), removed the reference to 'Chapter 1 (commencing with Section 5000)' and kept only 'Article 5.1 (commencing with Section 5096) of Chapter 1 of Division 3' as the basis for being authorized to practice public accountancy, narrowing which statutory provisions qualify someone for the exemption.

In Section 22258(a)(2), removed the alternative that a firm could be exempt if it is 'authorized to practice public accountancy pursuant to Chapter 1 (commencing with Section 5000) of Division 3.' Now only firms with a current and valid license issued by the California Board of Accountancy qualify for the exemption.

The bill now amends Section 22258 of the Business and Professions Code (exemptions from tax preparer registration) in addition to the original nonsubstantive fix to Section 22250. The digest changed from 'nonsubstantive changes' to a substantive exemption provision.

New exemption added: a firm, including its partners, shareholders, owners, or employees, is exempt from tax preparer registration if the firm has a current and valid California Board of Accountancy license or is authorized to practice public accountancy pursuant to Chapter 1 (commencing with Section 5000) of Division 3.

The existing individual exemption for holders of a California Board of Accountancy license was expanded to also cover persons 'authorized to practice public accountancy pursuant to Chapter 1 (commencing with Section 5000) of Division 3,' which captures federally licensed CPAs.

New subdivision (d) specifies that the amendments apply to tax returns prepared for taxable years beginning on or after January 1, 2025.

Fiscal committee review changed from 'no' to 'yes,' indicating the bill now requires fiscal analysis due to its substantive policy impact.

Bill was assigned Chapter 329 and the Governor's approval date (October 3, 2025) was added, confirming enactment into law.

Senate and Assembly passage pages with signature lines were removed as they are no longer needed once the bill is chaptered.