Verify the Tax Preparer’s Credentials
There are a lot of people out there claiming to be a “tax professional.” However, just because someone advertises tax preparation services, it doesn’t mean that they have the skill, education, and expertise to properly prepare your tax return.
So, to increase the odds of finding a qualified tax preparer, look for someone who is credentialed. You are much more likely to get a competent preparer if they’ve been vetted by the IRS or a state regulatory board. The most common types of credentialed preparers are certified public accountants (CPAs), enrolled agents, attorneys, and annual filing season program participants.
Certified Public Accountants. CPAs are licensed by state boards of accountancy, studied accounting at a college or university, and have passed a rigorous exam. They must also satisfy ethical requirements and take continuing education classes to keep their license.
Enrolled Agents. Enrolled agents are licensed by the IRS. They must pass a comprehensive exam, which requires them to demonstrate proficiency in federal tax return preparation and complete 72 hours of continuing education classes every three years.
Attorneys. Many attorneys are licensed and regulated by state courts and/or state bar associations. If they are licensed, they not only graduated from law school but also passed a bar exam. In addition, attorneys are often required to take continuing education classes and satisfy other professional ethics requirements.
The IRS also runs a voluntary program that recognizes the efforts of return preparers who are not CPAs, enrolled agents, or attorneys. It will issue an Annual Filing Season Program Record of Completion to tax return preparers who complete a certain number of continuing education hours for a specific tax year.
You can use the IRS’s Directory of Federal Tax Return Preparers with Credentials and Select Qualifications to find a tax return preparer in your area with the credentials described above.