Nevada Tax Preparer (Document Preparer) Bond

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Who is Required To Purchase the Nevada Document Preparer Bond?

In Nevada, document preparers include:

• Preparing or completing any pleading, application or other document for a client
• Translating answers to questions posed in legal or tax documents
• The act of securing documents like a birth certificate that may be required in a legal matter
• Taking responsibility for submitting documents on behalf of clients to a court or tax agency
• Assisting and/or preparing federal or state tax returns or claims for tax refunds

The three main professions responsible for these actions are a:

• Paralegal
• Bankruptcy petition preparer
• Tax return preparer

The key distinction is a document preparer cannot provide any legal advice or tax advice in the handling of taxes or deductions.

Before you offer any of these services, you must first be registered with the Nevada Secretary or State and part of this process is purchasing your surety bond.

What is the Nevada Document Preparer Surety Bond Amount?

Individuals and businesses with one registered document preparer must purchase a bond with the amount of $25,000.

If you're a business entity and you employ multiple document preparers, you can purchase one surety bond to cover all your employees.

Here are the amounts based on the number of employed and registered document preparers.

Number of Employees	Bond Amount
2 to 25	$50,000
26 to 75	$75,000
76 to 125	$100,000
126 to 200	$150,000
More than 200	$200,000

 

It's important to know, these bond amounts are the total amount of financial compensation available to customers in the event they are purposefully and financially harmed.

The surety bond is the primary way the Nevada Secretary or State holds document preparers accountable to the promises and actions they take with clients. The bond is for the clients protection.

Why is a Nevada Tax Preparer (Document Preparer) Bond Required?

The registration process for document preparers ensures that each individual has passed the required background checks to perform their obligations.

And despite the registration process, there will be a small number of document preparers who commit acts of fraud like:

• Altering the legal or tax documents of a client
• Charging exorbitant fees
• Charging false fees
• Providing legal or tax advice they are not allowed to legally offer

In the event a customer is financially harmed by a document preparer, the customer can make a claim against the surety bond for financial compensation. However, this compensation can only go up the bond amount listed above.

What Is The Cost of a Nevada Document Preparer Bond?

The price of this bond will be determined by a rate that's quoted from a surety.

A surety is an insurance company that underwrites this type of surety bond. Not all sureties offer these bonds.

For the sureties that do, they will use their own internal assessment process for an applicant, which typically includes factors such as:

• The personal credit of the individual, the business owner and/or owners
• The prior experience of offering tax and legal document preparation or industry experience
• Any prior bond clams if the individual or owners have been bonded in the past

The rate quoted by the surety multiplied by your bond amount will be the price you pay.

Let's look at some examples so you can see how big of a difference one to two percentage points can make on the price you'll pay.

Let's use the $50,000 bond amount that covers two document preparers.

One to two percentage points can save you hundreds of dollars and this is what we do at Surety Bonds Direct.

 

How To Ensure You Pay As Little As Possible For Your Document Preparer Bond

We are a specialized surety agent and it's our sole purpose to price shop for you and find the lowest possible document preparer bond price.

We do this by working with only A-rated sureties and collecting the rates from each surety that offers these bonds.

Once you get your price, purchasing your bond is as easy and fast as completing an online checkout form.

What Happens After You Purchase Your California Tax Preparer Bond?

Once you purchase your document preparer surety bond, we must prepare your bond:

• Using the correct bond form
• With the correct signatures and seals
• Including the required power of attorney

It takes less than one business day to prepare your bond and get it read for issuance.

Once your bond is ready, the Nevada Secretary of State requires a physical copy of the original bond.

This means we'll need to mail you a copy of your bond. Unfortunately this will add 2 to 3 days to the bond timeline.

But this is a great reason to get this bond process done immediately. You don't want to have your document preparation registration delayed because you're waiting for your surety bond.

Get your pricing now so you can get your bond issued within the next day.

You can always call a bond specialist at 1-800-608-9950 if you prefer to talk with a real person to get this process completed.

How Long Does a Nevada Document Preparer Bond Last?

The Nevada document preparer bond has a term of 12 months at which time it will need to be renewed.

This is another great reason to work with Surety Bonds Direct. You get assigned a bond specialist and they manage this process for you.

As your bond expiration date approaches, your bond specialist will reach out to you 30 to 40 days in advance to make renewing your bond fast and easy.

Renewing is as simple as paying the renewal premium. And we're always working to find you a lower price during each renewal period.

Tax Preparer (Document Preparer) Bonds And Getting Your Nevada Business License/Registration

The process for getting registered as a document preparer is very straightforward.

The process follows these steps in order:

• Complete the online application
• Have your fingerprinting and background check completed
• Once you pass your background check you'll be notified about your bond requirement
• Purchase the appropriate bond amount
• Submit your application