As of May 25, 2019, the bond amount for legal document preparation service providers, which includes tax preparers, is reduced to $25,000. Businesses in good standing can register 2 to 25 tax preparers under a $50,000 bond for as little as $400 to $500 annually. Nevada Enrolled Agents, CPAs and attorneys are exempt from these requirements.
A document preparer bond protects your customers and the state from financial harm in cases of fraud or unlawful practices on your business’s part. In the event that a claim is upheld, damages can be paid up to the total amount of the bond. As the policyholder, you will then be expected to repay that amount back to the surety company.
Legal document assistants in Nevada may know this bond as an LDA surety bond. It is also referred to as a tax preparer bond and a document preparation service bond.
Nevada state law requires all providers of document preparation services to have a $25,000 surety bond. The state made changes to Assembly Bill 280, effective May 25, 2019. With those changes, the following professions now fall within the category of “document preparation service":
For a full list of qualifying “document preparation services," visit Nevada’s Secretary of State website.
Since Nevada Assembly Bill 280 expanded the definition of document preparation service, this $25,000 policy functions not only as a surety bond for Nevada tax preparers, but also as a legal document assistant bond (LDA bond), a bankruptcy petition preparer bond, and an immigration assistant bond.
The annual premium for Nevada’s document preparation service bond can be as low as $400 for highly qualified applicants, which is less than 2% of the full bond amount. On average, premiums range from 1% to 3% of the bond’s coverage amount.
Properly bonding your document preparation service can be easy. Simply follow these steps to meet Nevada’s surety bond requirement:
If your company is looking to cover this bonding requirement for all of its tax preparer employees, we can provide a company-wide bond for as little as $500 per year.