10 Questions To Ask When Choosing A Tax Preparer

Tax season is approaching, and it is quite obvious that taxpayers are looking for a tax preparer. A tax expert can help you prepare for complex forms, avoid unnecessary taxes, and receive maximized benefits under the law.

If you are able to pick someone who commands expertise with the kind of taxes that you are required to pay, the situation will be pretty merry. However, things can turn awry if the choice of a tax preparer is not appropriate.

To ensure that you make a fine choice with the tax preparer and get your taxes filed correctly, you must give it some thought. Here are the 10 most important questions that should be asked before hiring a tax preparer:

1. Ask For Their Valid PTIN

This should be your primary question. Anyone preparing federal tax returns for compensation must possess a valid 2025 PTIN before they can start working on returns. If a tax preparer lacks a PTIN, they are not permitted to prepare your return—this is crucial information to confirm beforehand. You can verify PTIN qualifications yourself by using the IRS’s online PTIN directory.

Fraudulent tax preparers are not allowed; they might prepare the taxes for you and ask you to sign them as self-prepared. They might support it with a claim that return files by the professional are more likely to be audited. This claim is false.

Along with that, if anything goes wrong with auditing, the tax preparer will not be considered responsible. PTIN is your best way to stay safe. So, that’s the first thing to ask.

2. Ask For Their Background

When evaluating a tax preparer, it’s important to inquire about their background. Ask about their education, certifications, and experience in tax preparation. Understanding whether they have relevant qualifications, such as being a Certified Public Accountant (CPA) or an Enrolled Agent (EA), can provide insight into their expertise.

Additionally, inquire about their experience with your specific tax situation or industry and any ongoing training they pursue to stay updated on tax laws and regulations. This information will help you assess their ability to handle your tax needs effectively.

Here are some online directories that you can use to easily find reputed CPAs and tax professionals.

3. Ask How They Prepare for A (fill in the blank) Tax Return

Remember when I said there’s no one-size-fits-all? That’s because tax returns are not the same all the time. Some tax preparers can breeze through 1040 forms, while others are experts in handling Schedules C (for businesses) or E (for rentals). Some specialize in pass-through entities, tax-exempt organizations, or fiduciary returns. Others may cater to international taxpayers, expats, or small businesses. There are countless variations, just like the forms and schedules themselves.

Experienced preparers often have a broad range of knowledge, but no one can be a master of all. If your tax situation is unique due to investments, your job, or residency status, seek out a preparer with expertise in your specific needs.

4. Ask How Effective They Can Be With Your Unique Tax Needs

Your tax returns will depend on a number of factors. The kind of industry that your business belongs to, the state and locality in which your business is located, etc., are some of those factors. Now, the expertise of the tax preparer with such factors can be a great booster in filing tax returns quickly and in tax savings.

Go ahead and ask the tax preparer about the benefits that they can earn for you. Since you understand your business better than most, it might not be tough to see if they actually have real help to offer or just playing a bluff. For the state-based concerns, you can inquire about the number of clients they have served in the state.

5. Fees Determination Pattern They Adopt

Pricing can vary depending on factors like the complexity of your tax return, the need for additional schedules (such as Schedule B for dividends and interest, Schedule C for business income, Schedule D for capital gains and losses, or Schedule E for rental income), and supporting forms (such as those for child tax credits or additional charitable donations).

If your return includes unusual items, like Roth IRA conversions, this may also affect the fee. Additionally, some tax preparers offer lower rates for federal returns but charge extra for state or local filings, so it’s important to understand the total cost. Be cautious of preparers who base their fees on a percentage of your expected refund, which may incentivize them to push for questionable credits or deductions.

6. Ask About Electronic Filing Options

Since electronic filing (e-filing) was first introduced in 1990, more than 1 billion individual tax returns have been processed through this method. E-filing has quickly become the preferred option for taxpayers and professionals, offering significant advantages over traditional paper filing. One of the main benefits is speed: e-filing is the fastest way to receive tax refunds. Additionally, e-filing reduces the chances of making common errors, such as math miscalculations, thanks to built-in checks in most tax software.

For many tax professionals, e-filing is not just a convenient option—it’s a requirement. The IRS mandates that paid preparers who handle more than ten client returns must file electronically unless their clients opt out of the process. This regulation streamlines tax submissions and enhances accuracy on a large scale, benefiting tax agencies and taxpayers.

Several tax software solutions are available to support e-filing. Sage, for instance, offers robust tools for managing tax preparation and electronic submissions. Other popular platforms include Drake, which caters to individual taxpayers, and Intuit Lacerte, ideal for tax professionals working with multiple clients. These software options provide a seamless experience, from preparing returns to securely submitting them.

Additionally, hosting tax software in the cloud (Sage, Drake, Lacerte, or more) can enhance accessibility, enabling users to access their files and applications from anywhere, collaborate with clients in real time, and ensure data security through regular backups and advanced encryption.

7. Inquire About State and Local Filing Requirements

Federal income tax rules apply uniformly across the country, but state and local tax requirements vary significantly, especially for business owners. Things can get even more complex if you relocate during the year or live in one state and work in another.

Additional complexities arise if you own a business or real estate in a different state or are a beneficiary of a trust or estate in another state. Your tax preparer must be well-versed in these diverse filing requirements and able to navigate them effectively.

8. Ask About Required Records and Documentation

While you don’t need to bring your entire home office to your tax preparer, a reputable professional will require key documents like your W-2, 1099, 1098, and other income and expense records to ensure your return is accurate. Avoid any preparer who offers to e-file your return using just a pay stub, as that’s against IRS regulations.

A competent preparer should clearly explain what additional forms or documents are needed for special schedules or unique situations. If they skip essential due diligence upfront—especially for credits like the Earned Income Tax Credit—it could be a red flag that they might cut corners elsewhere, potentially at your expense.

9. What Technology They Use

Tax software has overshadowed Excel spreadsheets, and almost every active tax preparer works on advanced tax software. But which one? Are you familiar with the software? If you have to fill out or check certain information in the software, can you do that?

Ask for the tax software they work on and try to pick a tax preparer who works on the software you are familiar with or has all the features you need.

Along with the software, look for solutions that help you stay in touch with the tax preparation to track the progress whenever you want. Hosting the tax software on the cloud can get that done for you.

10. When Can The Returns Be Expected

IRS is pretty serious about deadlines, and you must adhere to them. So, ask your tax preparer to file the tax returns well before the deadlines. This will ensure that you can escape the possibility of a penalty. Remember to collect a copy of the returns filed by the tax preparer.

And there is no good in going with a tax preparer who cannot give a reliable time window. Better to look for another one.

Conclusion

Selecting the right tax preparer is crucial for ensuring your financial well-being and compliance with tax regulations. Evaluating potential tax preparers thoroughly will help you find a trusted partner who can navigate the complexities of tax preparation effectively, ultimately leading to a smoother filing process and peace of mind.

So, choose wisely, and ask the questions discussed in the blog while hiring a tax preparer!