How to Find the Right Accountant for You

Additionally, some tax preparation companies offer their own training programs for these individuals or require returns they prepare to be reviewed by a credentialed tax expert, such as an enrolled agent or CPA, says Fabio Ambrosio, a professor of accounting and business law at East Texas A&M University.

VITA/TCE volunteers: The IRS’s Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs provide free basic tax return preparation to individuals with disabilities, people earning $69,000 or less and adults age 60 or older.

Volunteers for these programs must pass tax law training that meets or exceeds IRS standards, and a quality review check is required for every return prepared. You can find your nearest VITA or TCE site by using the IRS’ locator tool or calling 800-906-9887.

How do I find a qualified tax professional?

Once you know what kind of tax expert you’re looking for, you’ll want to narrow your search to professionals in your area, since tax rules can vary by city, county and state. 

One way to find local, qualified help is to use the IRS’s directory of federal tax return preparers, which lets you search for tax pros by their credentials and location. Also, the National Association of Enrolled Agents provides a searchable directory of its members.

All paid tax preparers, regardless of their credentials or education, must have a valid preparer tax identification number, or PTIN. You can verify an individual’s PTIN by downloading the IRS’s Excel file for your preparer’s state.

“You can and should treat this like hiring a surgeon,” Lewis says. “You wouldn’t let someone operate without checking whether they’re actually licensed and whether they’ve been disciplined.”

To see if any disciplinary actions have been taken against a preparer, check the IRS’s Office of Professional Responsibility’s disciplinary lookup Excel file. This document, which is searchable by name, lists censures, suspensions, disbarments and other misconduct.

You can review CPA licenses using the National Association of State Boards of Accountancy’s CPAverify Public Search tool. And you can check providers’ disciplinary records by visiting the state board of accountancy where they practice — each state has a licensee lookup and verification database.

State bar associations allow you to check the license and discipline status of tax attorneys. Elite Litigators, an online legal directory and review site, offers a state-by-state breakdown of how to check.

Finally, don’t hesitate to ask for references, says Eva Simpson, vice president of member value, tax and advisory services for the American Institute of CPAs. 

What questions should I ask?

You’ll be sharing a good deal of personal information with your tax preparer, and the cost of errors on returns can be high, so carefully interviewing any potential provider is crucial. In addition to verifying their credentials and education, you want to know from the get-go their level of familiarity with your specific tax needs, what they charge and how they protect clients’ information.

“A lot of frustration with tax professionals can happen when there’s mismatched expectations,” Lewis says. “Understanding your preparer, their experience and the way that they conduct their business is important.”

Here are a few questions to ask:

• What kind of clients do you typically work with? Tax preparers specialize in different areas, and some focus on working with specific groups, such as retirees or small-business owners. Yours should be comfortable dealing with the issues you most commonly face, whether that’s multistate taxation, accounting for rental property, managing a retirement account’s required minimum distributions (RMDs) or some other tax issue.
• How long have you been practicing? There’s nothing wrong with employing a newly qualified tax professional, but you may feel more comfortable hiring someone with more experience and a proven track record of resolving IRS disputes. 
• How do you stay current with tax law? Many tax credentials require continuing education, but it’s not mandatory for all paid preparers. It’s good to check that they’re staying up to date on the latest tax law changes and that you’re not receiving guidance from yesteryear. 
• What is your fee structure? Tax professionals bill clients in numerous ways. They may charge by the hour, by the project or by the number of forms involved. But regardless of their pricing structure, preparers should be transparent about their fees and about what’s included (and what’s not). You don’t want any surprises. Ask ahead of time whether certain issues — like an IRS audit of your return — will be covered, Lewis says.
• Who will be preparing my return? The tax professional you meet with may not be the only one involved in your tax preparation. Many tax pros employ support staff to help them gather documents and information. “It’s perfectly fine that other people do the work, as long as you feel comfortable and there’s good quality control,” Lewis says. “You just really want to know that there are competent eyes on your return.”
• How will you communicate with me? Find a tax professional who will accommodate how you prefer to share information, whether that’s face-to-face meetings, phone calls, emails, virtual meetings or other methods of communication. 
• How will you protect my personal information? Your tax preparer is privy to some of your most sensitive personal data and possibly that of your spouse and kids, depending on how you file. They are also privy to your bank and retirement account statements, past tax returns, employment records and other sensitive documents. Find out what steps they take to protect this information.

What red flags should I look for?

Watch for these warning signs in talking to a tax pro — they could indicate that you’re dealing with an ill-informed or unscrupulous individual.

• Being unwilling to sign your tax return. “If they’re getting compensated, they’re supposed to sign the return,” Lewis says.
• Guaranteeing a large refund without knowing your whole financial situation. Don’t be swayed by a verbal promise of a big payoff. The preparer can’t know that until they’ve thoroughly examined your books.
• Charging fees based on a percentage of your refund. Tax preparers who do this have an incentive for you to claim deductions or credits you may not be entitled to.
• Failing to provide a written agreement outlining their services and fees. Transparency is a must.
• Claiming to have insider or special knowledge. For instance, Ambrosio has heard of former IRS employees using their experience to tell clients things like “I used to audit people. The IRS never looks at this number.”

Consider AARP Foundation Tax-Aide

Since 1968, Tax-Aide has helped more than 82 million taxpayers fill out their returns for free. All Tax-Aide volunteers are certified by the IRS each year to ensure they understand all facets of the tax code.

You can find the Tax-Aide location nearest to you with AARP’s Tax-Aide Locator tool. The service is available by appointment in most locations, but some have walk-in service too.

Tax-Aide volunteers can prepare most returns, but not all of them. If you have a small business or must pay the alternative minimum tax, you might be better served elsewhere. Although the program is aimed at serving older adults with low to moderate income, anyone who qualifies can use Tax-Aide regardless of age, and you don’t have to be an AARP member.

Need help with your tax return? Try AARP’s tax calculator.