Important Bond Requirement Changes for Nevada Tax Preparers
In case you missed the news after this year’s tax-season rush, Nevada lawmakers modified the bond requirements for legal document preparation services. The most important changes made by Assembly Bill 280 are that:
- Enrolled Agents join CPAs and attorneys on the exempted list,
- Coverage for non-exempt tax preparers is reduced from $50,000 down to $25,000 and
- Businesses can register all company tax preparers under a single $50,000 bond.
Because the law change decreases the bond coverage amount for non-exempt tax preparers, you can expect your annual cost to buy the bond to decrease as well. Individuals may be able to get the bond for as little as $200 per year.
Companies that choose to purchase a $50,000 bond to register all tax preparer employees can expect the cost to vary based on the number of employees they need to cover and the company owner’s personal credit history. Tax preparation companies that register 2-25 tax preparers can expect to pay $400-$500 annually for this bond.
It’s important to understand that a surety bond does not provide any liability protection for the tax preparer. The bond is required by the state and is meant to provide protection to the public, and in the event of a claim, the surety company will seek reimbursement for losses from the document preparer. NNA Surety Bonds strongly advises customers to consider getting a professional liability insurance policy (Errors & Omissions Insurance) to have personal protection for the tax preparer and the business.
NNA Surety Bonds (NNASuretyBonds.com) is operated by the National Notary Association and has been a leading surety bond provider nationwide since 1957. NNA Surety Bonds provides the NV Document Preparer Surety bond for both individuals and companies. Please contact one of our licensed insurance professionals today for a free quote today at (855) 215-2160.
Chris Sturdivant (NV Insurance License # 864191) is the VP of Business Development for the National Notary Association and NNA Surety Bonds. He can be reached via email at firstname.lastname@example.org.