Oregon Licensing Laws

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Special Oregon Licensing Laws

Did you know that Oregon is one of the only states in America where you must be licensed to prepare tax returns as a paid professional? Additionally, Oregon is the only state with any kind of testing requirement for preparers. Oregon's unique licensing laws help ensure that only competent professionals are permitted prepare tax returns as paid professionals.

Becoming a Licensed Tax Preparer

To become licensed as a tax preparer, an individual is required to successfully complete an approved 80-Hour Course in Basic Income Tax Law. Upon successful completion of an approved course, the student is eligible to sit the Oregon Exam for Tax Preparers.  To successfully pass the LTP test, individuals must achieve a score of 75% or higher on the five-hour, closed-book exam administered by the Oregon State Board Board of Tax Practitioners (Commonly referred to as the Oregon Tax Board).

A Licensed Tax Preparer is licensed to prepare tax returns at an apprenticeship level.  All LTPs must work under the supervision of a Licensed Tax Consultant. 

Becoming a Licensed Tax Consultant

A Licensed Tax Consultant is an individual who has successfully passed the Oregon Tax Board's LTC Exam and who has demonstrated he or she has achieved a minimum of 780 hours of experience working in the field of tax preparation over a two-to-five-year period.  Generally, an individual eligible to sit the LTC exam has already been practicing as an LTP, however, there are certain exceptions to this rule:

1. An individual authorized to practice before the IRS as an Enrolled Agent is exempt from the time and education requirements, however, an Enrolled Agent wishing to practice as an LTC in Oregon must successfully complete the Oregon-only portion of the LTC Exam.
2. An individual who has worked under the supervision of a CPA or who has worked as a tax preparer in another state and can show they meet the time requirements may be permitted to sit the Oregon Tax Board's LTC Exam upon successful completion of an 80-Hour Course in Basic Tax Law.

Licensing of Tax Preparation Businesses

Tax preparation businesses that charge fees for the preparation of tax returns must be Licensed by the Oregon Tax Board unless otherwise exempt from this requirement.  Tax preparation businesses operating in the State of Oregon and regulated by the Tax Board must adhere to regulations governing their operations.  These regulations are posted on the Tax Board website. Click here to be directed to the Oregon Revised Statutes.  Click here to be directed to the Oregon Administrative Rules governing tax preparation businesses and tax return preparers.

Do I Need to be Licensed? The State of Oregon sets competency and ethical standards for tax professionals and regulates them through the Board of Tax Practitioners. The purpose of the law is to protect the consumer from unlicensed or unethical practitioners.   Any person preparing personal income tax returns for a fee or representing that they do so must be licensed by the Oregon State Board of Tax Practitioners. The only people exempt from this law are Certified Public Accountants and Public Accountants licensed by the Oregon Board of Accountancy and members of the Oregon State Bar who prepare returns for their law clients.  Please refer to the Oregon Board of Accountancy website at http://www.oregon.gov/BOA/ or the Oregon State Bar website at http://www.osbar.org/ for information concerning their licensing requirements.      Oregon's law applies only to those within the Oregon border EXCEPT when a person preparing the returns out of state is actively soliciting Oregon clients through activities such as having an agent in Oregon, having a "drop-off location" in Oregon, or by advertising in Oregon based publications -- including Oregon area phone books.   A person who is preparing the occasional Oregon return for clients who walk into their out-of-state office is neither in Oregon preparing the return, nor are they soliciting Oregon clients & are EXEMPT from needing an Oregon license.   Enrolled Agents must hold a consultant license with the Board of Tax Practitioners if they are preparing, assisting or advising in the preparation of individual income tax returns.  No license is required if the Enrolled Agent is merely representing the taxpayer before the IRS.

Click Here to go to the Oregon Tax Board's Web Page for specific instructions on applying for a license.