Research background and credentials thoroughly before hiring tax preparer

QUINCY — It may feel hard to believe, but the 2025 tax season is just around the corner.

Taxes can be complicated, and laws change every year. If you’ve experienced major life changes, own a business, or just want to feel sure that your taxes are done properly, it might make sense to work with a professional tax preparer. They can help you navigate things like deductions, tax credits and the best way to file.

You’ll need to be able to trust your tax preparer with your finances and sensitive personal information, so it’s important to choose someone with a good track record.

It’s also important to know that there are several types of professionals who can prepare your taxes, and that not all tax preparers have the same level of experience and training.

Before you hire someone, research their background and credentials thoroughly, and check their reputation with BBB.

How to decide what type of tax preparer is right for you:

Understand the different types of tax preparers. All the types listed can prepare your taxes, but only enrolled agents, certified public accountants and tax attorneys may represent their clients to the IRS for audits, collection issues and appeals.

• Enrolled Agent (EA): EAs must pass IRS requirements for testing and education to maintain their titles, and they usually specialize in specific areas of tax law.
• Certified Public Accountant (CPA): CPAs have a college degree or equivalent experience and are licensed by the state. Their accounting skills make them helpful for complex taxes.
• Attorney: Tax attorneys charge higher fees but may be a wise option for those who need advice on legal matters like municipal bonds or estate planning.
• Non-credentialed tax preparer: These preparers must have an active preparer tax identification number (PTIN) through the IRS and are regulated at the state level. Most tax preparers are legitimate and competent, but keep in mind that “non-credentialed” means they don’t have a national license requirement. Interview them thoroughly if you plan to work with them.

Search with BBB. At BBB.org, you can search for EAs, CPAs, tax attorneys and general tax preparation services near you.

How to choose a company you can trust:

• Check credentials. EAs, CPAs and attorneys may represent their clients to the IRS on all tax-related matters. Non-credentialed preparers can help you with forms and basic matters, but can’t represent you in the event of an audit. Ask about these and other credentials before you hire someone. Check whether the preparer belongs to a professional organization that requires members to adhere to a code of ethics.
• Beware of “ghost” tax preparers. “Ghost” tax preparers are not certified but still prepare tax returns. They get around the IRS’ oversight by asking you to sign your own tax return after they prepare it – that way, the IRS doesn’t know that they don’t have a PTIN, and you become liable for any mistakes they make. Never sign your own tax return if someone else prepared it!
• Check preparers’ track records with BBB. At BBB.org, you can see BBB Business Profiles that can help you learn about a tax preparer’s background and years in business. You can also see if they’re BBB Accredited – meaning they have pledged to safeguard your privacy, which is critical for handling your tax information.
• Be wary of upfront promises about your refund. Until the preparer knows your situation, there is no way to know whether you’ll get a refund or how big it will be.
• Avoid tax preparers who promise to get you a bigger refund than the competition and those who offer “refund anticipation loans,” which could come with commission fees that eat into your refund.
• Check your preparer’s schedule. Some tax preparers only work seasonally. Ask your preparer if they’ll be available for questions or support after tax season is over.
• Read the contract and ask about fees. Make sure you know what preparing your return will cost, what any fees cover, and whether the cost changes if you have a complicated return or would like to e-file your return.
• If things don’t add up, find someone else. If a tax preparer can’t verify their credentials, has a record of bad reviews from previous clients or their business practices don’t seem convincing, don’t do business with them. Remember that your tax preparer will handle your sensitive personal information – you need to work with someone you feel fully confident is trustworthy and reliable.

Check your return. Before you sign the return, read it over to check for mistakes. Ask the preparer to explain anything you don’t understand.

Don O’Brien is the regional director for the Quincy Better Business Bureau. Contact him at dobrien@quincybbb.org or 217-209-3972.