How to Choose a Trustworthy Tax Preparer This Tax Season

Episode 578

The holidays are behind us; you know what that means—it’s tax season! But before you start gathering your W-2s and receipts, there’s an important question: Do you know who will prepare your taxes this year?

With a nationwide shortage of Certified Public Accountants (CPAs) and tax professionals, waiting too long to find a preparer could leave you scrambling—and vulnerable to scams. Here’s how to protect yourself and find a trusted tax preparer.

Who Can Prepare Your Taxes?

When hiring a tax professional, your preparer will likely fall into one of three categories:

Certified Public Accountant (CPA): These professionals undergo rigorous education, exams, and licensing requirements. Many specialize in tax preparation and can also provide broader financial guidance.
Enrolled Agent (EA): Licensed by the IRS, EAs are tax experts who can prepare and file returns, represent clients before the IRS, and provide tax planning services.
Tax Attorney: These legal professionals specialize in tax law and are particularly useful for complex tax situations, audits, or disputes.

Each of these professionals is highly qualified—but the problem is there aren’t enough of them.

There is a growing shortage of CPAs and tax professionals, mainly because fewer young people are entering the field. Some firms are even hiring high school interns at $22 an hour to recruit future CPAs.

What does this mean for you?

Longer wait times to book a tax preparer
Higher fees due to increased demand
Greater risk of falling into the hands of fraudulent preparers

When people are desperate to file their returns, they can become easy targets for scammers who fake credentials or engage in tax fraud.

How to Avoid Tax Scams and Find a Qualified Preparer

To protect yourself, follow these IRS-recommended steps when choosing a tax preparer:

1. Choose a Year-Round Tax Preparer

A reputable preparer should be available beyond tax season. You don’t want your tax preparer to disappear if you get audited.

2. Verify Their IRS Credentials

Ask for the IRS Preparer Tax Identification Number (PTIN). All paid tax return preparers must register with the IRS and enter their PTIN on every return they file.

Check their status using the IRS Directory of Federal Tax Return Preparers at IRS.gov.

3. Look for Professional Credentials

Ask if the preparer holds a credential such as:

CPA (Check with the State Board of Accountancy)
Enrolled Agent (Verify at IRS.gov under "Verify Enrolled Agent Status")
Tax Attorney (Confirm with their State Bar Association)

Additionally, inquire about continuing education—since tax laws change frequently, professionals should stay current.

4. Be Cautious About Fees

Beware of tax preparers who:

Charge fees based on a percentage of your refund
Claim they can get you a larger refund than competitors

A legitimate preparer should charge a flat or hourly rate based on the complexity of your return.

5. Verify IRS E-File Capability

Most tax preparers handling more than 10 clients must file electronically. If your preparer refuses to e-file, that’s a red flag.

6. Ensure Proper Documentation

A trustworthy tax preparer will ask for the following:

Your W-2 and 1099 forms (not just a pay stub)
Records of deductions and credits

If a preparer doesn’t ask for supporting documents, walk away. The IRS requ

Published on 10 months, 3 weeks ago

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