Questions to ask before hiring a tax preparer
Before you commit to a tax preparer, a short conversation can reveal whether they are qualified, transparent about fees, and set up to protect your personal data. The ten questions below cover the points that matter most — credentials, cost, accountability, and security. Ask all of them before signing an engagement letter or handing over any documents.
Credentials and registration
Do you have a current PTIN? Every paid preparer in the United States is legally required to hold a Preparer Tax Identification Number (PTIN) issued by the IRS. A preparer who cannot provide a PTIN — or who declines to do so — cannot legally accept payment for preparing your federal return. You can verify a PTIN is active in the IRS directory at irs.gov/tax-professionals.
What professional credential do you hold, and can I verify it? Ask whether the preparer is an enrolled agent, a CPA, an attorney, or an Annual Filing Season Program participant. Each credential type has a public verification path:
- Enrolled agents: IRS Enrolled Agent directory (irs.gov)
- CPAs: state board of accountancy in the preparer's state, or cpaverify.org
- Attorneys: state bar association directory
A preparer with no verifiable credential is not automatically unqualified, but you lose the accountability layer that a licensed body provides.
How long have you been preparing returns like mine? General experience matters, but experience with your specific situation matters more. If you have self-employment income, rental property, stock options, or multi-state filing obligations, ask how many similar returns the preparer handles each year.
Fees and fee structure
How do you charge, and can you give me a written estimate? Flat fees by form type are the most transparent structure. Be cautious of any preparer who bases fees on a percentage of your refund — the IRS considers this an unethical practice because it creates an incentive to inflate figures. Ask for a written fee schedule or a written estimate before work begins.
Are there additional charges if my return is amended or audited later? Some preparers include representation in their base fee; others charge separately. Know in advance what you would owe if questions arise after filing.
Return responsibility and signing
Will you sign my return as the paid preparer? Under IRS rules, every paid preparer must sign the return and include their PTIN. A preparer who refuses to sign — or who asks you to sign a blank or incomplete return — is a serious warning sign. The signature makes the preparer legally accountable for the positions taken on the return.
Who actually prepares my return — you, or a staff member? In larger firms, data entry and initial drafting may be handled by junior staff before a credentialed preparer reviews and signs. That is not inherently a problem, but you should know who is doing the work and what oversight exists.
E-file and year-round availability
Do you e-file federal and state returns? The IRS requires preparers who file more than ten returns per year to e-file unless the client opts out. E-filing is faster, produces a confirmation receipt, and reduces transcription errors. If a preparer insists on paper filing without a clear reason, ask why.
Are you available after the filing deadline if questions come up? Some preparers close their offices after April. If a notice arrives from the IRS in August, you want to know whether your preparer will be reachable to help you respond.
Data security
How do you store and transmit my documents and personal data? A professional preparer should use encrypted file transfer (not unencrypted email attachments) and store client files on secured, access-controlled systems. Ask specifically how long they retain your records and what their policy is if a data breach occurs. Under IRS Publication 4557, tax preparers have an obligation to protect client data — a professional should be able to describe their safeguards in plain terms.
A quick pre-hire checklist
- PTIN confirmed in IRS directory
- Credential type stated and verifiable
- Fee structure in writing — flat rate, not percentage of refund
- Preparer will sign the completed return
- E-file is the default method
- Available year-round for notices and correspondence
- Written data-security policy or clear verbal description
Find a verified professional
Browse the directory on TaxProsRated to search by location, credential type, and specialty. Each listing identifies the credentials a preparer claims — use the verification steps above to confirm them independently before you engage.
Sources
- IRS PTIN directory and enrolled agent verification: irs.gov/tax-professionals
- IRS guidance on preparer obligations and signing requirements: IRS Publication 4012, IRS Circular 230
- IRS guidance on data security for tax professionals: IRS Publication 4557
- CPA Verify (US state boards of accountancy): cpaverify.org