Overview of Nevada Tax Preparer Bond Requirements
This bond is a type of document assistant bond. It is required of applicants for a document preparation service license in Nevada. The amount of this bond is $50,000 and it must be posted to the Office of the Secretary of State when applying for this license.
The purpose of the bond is to guarantee that holders of document preparation services license will comply with the provisions of the NRS. It also guarantees that violations of the NRS, and in particular of NRS 240A.120, are covered under the bond agreement, and any person who has suffered a loss due to such a violation can file a claim against the bond.
Under the bond agreement, claims are handled by the surety which backs the bond. When compensation is extended under a bond claim, it can be as high as the full amount of the bond, also known as its penal sum.
If you’ve never gotten a bond before, see our detailed ‘What is a surety bond’ guide for a full explanation of how bonds work and why you need one!
See below for more information regarding the cost of your bond, what could trigger a claim against this bond, and how you can apply to get bonded!
Call us at (866)-450-3412 if you want to speak to one of our experts about this or other bonds!
The cost of your bond is equal to a small fraction of the full amount of your bond. How much exactly your bond will cost largely depends on your personal credit score. The higher your score is, the lower your bond rate will be. Surety companies may also take into account your financial statements and other personal financial information when setting a rate.
If you have a credit score of 700 FICO or more, you can expect to get bonded at a rate between .75% and 1.5% of the full amount of your bond. Applicants with slightly lower credit scores will usually be offered a rate upward of that range.
Try our bond calculator to get a quick estimate of your bond cost or see the table below for an approximate range of your bond rate, based on credit score. For a precise quote on your bond, see below!
Surety Bond Cost Calculator
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|Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Nevada Tax Preparer Bond||$50,000||$375-$750||$500-$1,250||$1,250-$2,500||$2,500-$3,750|
Bad Credit Bond Program
Even with a low credit score, you can get bonded as easily as applicants who have better scores. Simply apply through our Bad Credit Program!
Thanks to this program, applicants who currently have a lower credit score can get bonded, though at slightly higher rates. But by improving your credit score over time, you are sure to get increasingly better rates on your bonds.
See the program page to find out how you can apply for a bond with low credit score, and to request a free quote!
A claim against a bond can occur when the conditions of the bond agreement are violated by the bonded party - in this case the tax preparer.
Under NRS 240A.120 a claim can be filed against a bond when a client of a tax preparer or any other person suffers damages due to an action or omission by the preparer that violates Chapter 240A or any provisions adopted under it. A claim can also be filed in instances of fraud, dishonesty or negligence, as well as when the conditions of the contract between the preparer and the client are violated. The bond is further conditioned to cover any civil penalties, attorney fees or costs of suit that are to be paid by the preparer under this chapter.
When a claim is filed in any of the above cases, the surety that backs the bond investigates the issue and extends compensation to claimants. Compensation under a bond claim can be as high as the full amount of the bond. In such a case, the bonded tax preparer must then repay the surety in full for such compensation.
In other words, dealing with a bond claim can be very costly and difficult to deal with for the bonded party. Avoiding situations that could give rise to a claim is the safest bet for businesses to avoid having to face a bond claim!
Get Bonded Today!
Get a free quote on your bond by completing our bond application form. We will soon provide you with a quote, along with additional information on finalizing your application. It takes two days for your bond to be issued after your final application papers are received.
Once your bond is issued, we will send it to you via standard mail as well as provide you with a digital copy over email.
Call us at (866)-450-3412 if you want to know more about the bonding requirements in Tennessee or if you have any other bond-related questions!