How to Choose a Tax Preparer

Start with the credential

The IRS recognizes four credential categories: Attorney, CPA, Enrolled Agent, and AFSP. Any one of the four is a meaningful signal of basic competence. A preparer with no IRS-recognized credential is not necessarily incompetent, but you have no third-party verification of their training. Start your search by deciding which credential category fits your situation.

Verify the PTIN

Every paid preparer must hold a current Preparer Tax Identification Number. The PTIN must appear on every return the preparer signs. Use the IRS Return Preparer Office’s public directory at irs.treasury.gov/rpo/rpo.jsf to confirm the credential. See our step-by-step verification guide for the full process.

Recommended: a deeper background read on tax-professional credentialing →

Match the credential to your situation

For a straightforward W-2 return with the standard deduction, an AFSP filer or franchise office is generally sufficient. For a return that includes a small business, multi-state activity, equity compensation, or rental property, prioritize an Enrolled Agent or CPA. For matters with litigation risk, complex estate planning, or potential criminal exposure, engage a tax attorney.

Ask about fees in writing

Get the fee structure in writing before signing an engagement letter. The IRS specifically warns against preparers who charge a percentage of the refund — this practice is unethical under Circular 230 and creates a financial incentive for the preparer to inflate the refund. Reputable preparers charge either a flat fee per return type, a per-form fee, or hourly billing.

Confirm the preparer signs the return

Federal law requires that the paid preparer sign every return they prepare and enter their PTIN. A preparer who refuses to sign is engaged in “ghost preparation” — the IRS’s most-flagged form of preparer fraud. If a preparer hands you a return to sign and submit yourself, walk away.

Ask about post-filing support

Returns sometimes attract IRS attention. Ask in advance: if the IRS sends a notice after I file, will you respond on my behalf? At what cost? AFSP filers can respond on examination notices for returns they prepared but cannot handle collections or appeals. EAs, CPAs, and attorneys can handle the full lifecycle. Confirm the post-filing terms in writing.

Watch for the IRS red flags

The IRS publishes its “Dirty Dozen” list of tax scams every spring. Several items on the list are preparer-specific: ghost preparers, refund-percentage fees, deposits routed to the preparer’s bank account, and inflated refund promises. Walk away from any preparer who exhibits any of these warning signs.

What a good engagement letter looks like

A good engagement letter identifies the parties, the scope of work (which return types, which years, which forms), the fee structure, the timeline, the document-handling process, the post-filing support terms, and the termination provisions. It should be signed by both parties before any preparation work begins. Avoid handshake engagements — even with preparers you have used before.

Continue reading

• What Is an IRS Enrolled Agent? — A plain-English explainer of the Enrolled Agent credential, the Special Enrollment Examination, and what unlimited representation rights actually mean.
• What Is a Certified Public Accountant? — How CPAs become licensed by state boards of accountancy, what the four-section CPA exam covers, and when a CPA is the right hire for tax work.
• What Is the IRS Annual Filing Season Program (AFSP)? — The history of the AFSP, what the 18-hour continuing-education track includes, and the limited representation rights AFSP filers receive.
• How to Verify a Tax Preparer's PTIN — Step-by-step instructions for confirming any paid preparer's PTIN against the IRS Return Preparer Office public directory.