- Start your search for a tax preparer or tax advisor before the peak of tax season.
- An IRS directory lists CPAs, enrolled agents, and attorneys who can prepare returns and give advice.
- Always double-check a professional's credentials against national or state agency databases.
If the idea of doing your own taxes stresses you out or you simply don't have the time, it's worth hiring a tax preparer or tax advisor. A professional can help you get organized and make sure you're getting all the credits and deductions you qualify for.
Like finding the right doctor or therapist, finding the best tax preparer or tax advisor for your situation can take time.
"When or how someone should start looking for a tax advisor or preparer depends in part on the level of comfort and knowledge with taxes," says Kristine Stevenson Seale, an enrolled agent, tax resolution specialist, and financial coach based in Austin, Texas. "Some fear the IRS, and are very uncomfortable preparing the most basic of tax returns."
Other people may be comfortable with a DIY approach using tax software, but they leave money on the table because they hurry through questions and prompts or don't understand what's being asked, Seale says.
Tax season begins in January and runs through April 15, 2025. As the tax deadline approaches, you may find that the best tax preparers or tax advisors in your area are no longer taking on new clients, so it's wise to start your search early.
Understanding different types of tax preparers
There are several professionals who may be qualified to help you prepare your federal and state tax returns, but fewer who can also legally provide tax-planning advice.
No matter what type of assistance you need, be sure the individual has the required preparer tax identification number (PTIN) from the IRS.
"This is not a professional credential and just about anyone can get one," Seale says.
However, many tax preparers who have a PTIN and no further credentials are highly experienced after working many tax seasons, she adds. Their biggest limitation is the type of advice they can provide.
If you have specific tax planning needs and a complex situation, an enrolled agent, tax attorney, or certified public accountant is likely a better fit. They have completed years of study and have extensive knowledge of tax law.
"If you need tax advice because you have a rental real estate business with 10 rental properties, for instance, seek a credentialed tax professional that specializes in real estate," Seale says. "If you only need to understand how contributing to your 401(k) at work will affect your tax return, buying an hour of any enrolled agent or CPA's time is money well spent."
Here's more about the capabilities of various tax professionals:
- Annual Filing Season Program Participants: These professionals have a PTIN but no other tax-related credentials and cannot represent you before the IRS if you are audited or face a tax compliance issue.
- Enrolled Agent: These professionals are licensed by the IRS to represent taxpayers during audit or noncompliance issues, and are proficient in federal tax planning and individual and business return preparation. They must pass an exam, meet ethical standards, and complete 72 hours of continuing education every three years.
- Certified public accountant: CPAs are licensed by state or U.S. territory accountancy boards to prepare tax returns and assist taxpayers with their planning needs. They are required to pass an exam, meet ethical standards, and complete continuing education requirements.
- Tax attorney: Attorneys are licensed by their state board. A tax attorney has demonstrated expertise in areas of federal and/or state tax preparation and complex tax planning.
Where to find tax preparers
Referrals
Tax preparation is high stakes, and you want to be sure you're working with a trusted and qualified professional. Before searching for a tax preparer online, consider asking friends and family who they work with and what their experience is like.
According to the 2020-2021 National Society of Accountants' income and fees report, more than 97% of accountants and tax preparers used referrals to gain new business. Some accountants may even provide a discount to people who are referred by an existing client.
IRS directory
To find a tax preparer who holds a professional credential, use the IRS directory. You can filter by ZIP code and the specific credentials you're seeking, including CPA, tax attorney, and enrolled agent.
Online tax software companies can also connect you with tax preparers in your area. H&R Block, for example, offers a range of expert services, from assistance via live chat to full-service, in-person tax prep.
Professional organizations
It can take up to a month for the IRS directory of credentialed tax preparers to update if there's a change in a professional's status, the agency says.
It's a good idea to cross-check credentials with national or state agencies, including:
- National Association of State Boards of Accountancy
- National Association of Enrolled Agents
- National Association of Tax Professionals
- American Academy of Attorney-CPAs
- American Bar Association (state directories)
Questions to ask potential tax preparers
Here are some tips to remember as you narrow down your search for a tax preparer.
- Ask about fees up front. Tax professionals typically charge per form, per item, or per hour.
- Ask if they file electronically. E-filing your tax return is safer and more accurate than mailing it, and usually gets your tax refund sent to you sooner. There should not be an extra fee for e-filing.
- Ask about their experience working with people in your situation. If you're self-employed or you manage multiple rental properties, for instance, look for someone with plenty of related experience.
- Ask about communication preferences. How can you get in touch with the tax preparer during tax season and the off-season? Do they typically collect documents and forms via snail mail or can you upload them to an online portal?
Red flags to watch out for
Beware of ghost preparers who prepare your tax return in exchange for a fee or promise a large refund but do not sign the return before submitting it to the IRS.
"After the tax return is filed, these ghost preparers disappear, leaving the taxpayer to deal with consequences ranging from a stolen refund to follow-up action from the IRS," said IRS Commissioner Danny Werfel in an April 2024 press release.
Any professional who is being paid to prepare a tax return must have a PTIN. The number should be included alongside their signature on every completed tax return.
Before you hire a tax preparer, carefully review the engagement letter they provide, which should detail the services you're paying for. You should also check their history with the Better Business Bureau and confirm their credentials with state directories.
FAQs about finding a tax preparer
Should I hire a tax preparer even if I have a simple tax situation?
Whether you should hire a tax preparer depends on how much time and patience you have, and the complexity of your tax and financial situation. If you own a business or a house or have multiple streams of income, it's usually worth hiring a tax preparer to help you avoid possible mistakes and make the most of the credits and deductions available to you.
How much does it cost to hire a tax preparer?
In general, the more forms you need to file, the more it costs to hire a tax preparer. According to a 2020 accounting industry survey, the average fee charged to prepare and file Form 1040, plus a state return, was $220. With itemized deductions, it was $323.
Can I switch tax preparers mid-way through the process?
You can switch tax preparers mid-way through the process, but it's not ideal. You may have to pay fees to both tax preparers, depending on the terms of your agreements, and spend twice as much time sharing documents and answering questions about your financial situation.