What is a Tax Preparer Bond?
A tax preparer bond is a type of surety bond currently required of registered tax preparers.
The tax preparer bond guarantees that those who prepare other people’s tax returns will do so in an honest, diligent, and discreet manner, and in accordance with state laws and regulations
Since tax preparers have access to individuals’ personal and financial information, this bond guarantees their professionalism and ethical conduct when working with such information.
Like all other bonds, tax preparer bonds function as an agreement between the principal (the registered tax preparer), the obligee (the state authority requiring the bond), and the surety bond company that issues the bond.
If a tax preparer should mishandle the information they have access to, commit errors in their work, or not comply with state regulations for tax preparers, the surety bond offers protection and financial compensation to their clients.
In such a case, the obligee may file a claim against the bond and request financial compensation for any harms caused by the preparer. The surety may then compensate the claimant for up to the full amount of the bond. The tax preparer, in return, will then have to indemnify the surety for the compensation it has paid to the obligee.
Questions about Tax Preparer Bonds in Michigan
How much does a tax preparer bond cost?
Tax preprarer bonds typically cost between 1% - 3% if you have good credit.
Can I get a tax preparer bond with bad credit?
Applicants with a low or nonexistent credit score can also obtain tax preparer bonds at low rates. While rates for such applicants may be higher than for those with stellar credit, Lance Surety Bonds’ Bad Credit Surety Bonds program makes it possible for them to get bonded easily and quickly.
Regardless of your credit status, Lance Surety Bonds always looks for the best possible rates for our clients. Thanks to our professional surety bond partners, all of which are A-rated and T-listed sureties, we are able to offer our clients exclusive rates on the market’s best bonds.
How to get your tax preparer bond
Apply online here and submit your surety bond application form. Since these bonds are approved fast, we will contact you with your quote within a short amount of time.
To speak to one of our surety bond experts and find out more about tax preparer bonds, call us at (877)-514-5146. We can help you with your application and answer all your questions concerning bonding requirements for tax preparers.
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