Waylon Cunningham

Tax season is here, and for many, that means deciding whether to go it alone with software or enlist the help of a professional.

Choosing the right tax preparer can be crucial, especially if you’ve experienced major life changes, own a business, or feel uncertain about navigating complex tax laws. This guide will help you understand the different types of tax preparers and provide tips for finding someone trustworthy to handle your finances with care.

How do you know when to get help with your taxes?

Significant life changes, business ownership, or simply a lack of knowledge about the ever-changing tax laws can make finding a trustworthy tax preparer a good idea. Just like choosing an expert to put a roof on your home is probably a better idea than tackling it yourself, sometimes it just makes sense to hire a professional.

A professional tax preparer is not only familiar with tax laws and how to file but can also help navigate things like deductions, tax credits, and whether a married couple should file jointly or separately.

In addition, a BBB Accredited tax preparer has agreed to uphold the BBB standards to tell the truth, honor promises and be transparent – and most importantly, when dealing with personal information: to safeguard your privacy.

Keep in mind, not all tax preparers have the same level of experience and training. Here are tips for finding someone you can trust with your finances and with your personal information:

First, it’s essential to understand the different types of tax preparers and their qualifications. While all the types listed below can prepare your taxes, only enrolled agents, certified public accountants, and tax attorneys may represent their clients to the IRS on matters such as audits, collection issues, and appeals.

Tax preparers

Thousands of people work as tax preparers in the United States. Some are full-time workers, and others work part-time or only during the tax season. These preparers must have an active preparer tax identification number (PTIN) through the IRS.

Beyond the PTIN, regulating tax preparers is done at the state level. Check with your state’s department of taxation or revenue to learn more.

Most tax preparers are legitimate and competent, but keep in mind that without a national license requirement, they may be working off their research and experience. Because of this, you should conduct a thorough interview with the tax preparer before hiring them.

Enrolled Agent (EA)

An EA is a tax preparer approved by the IRS to represent taxpayers. An EA must either have prior qualifying employment with the IRS or pass a comprehensive IRS test on individual and business tax returns. To maintain EA status, they must complete several credit hours of continuing education courses in accounting methods and tax regulations. An EA may work independently or as part of a firm and specialize in specific areas of tax law.

An EA may be a good option if you have a more complex tax situation. However, you’ll want to make sure their area of expertise applies to your personal situation. An EA is also qualified to help you with financial planning and give you tips that could help you reduce your taxes in the future.

Find a Tax Enrolled Agent near you. BBB Accredited Enrolled Agents will display the BBB Seal.

Certified Public Accountants (CPA)

CPAs are licensed after passing a state professional qualifying exam. They are highly skilled in accounting. These skills and qualifications make them good candidates for complex tax planning and preparation if they have experience in handling tax matters and they enroll in continuing education programs that keep them abreast of the constant changes to tax laws.

If your return is quite complex, a CPA may be your best choice for tax preparation.

Find a CPA near you – and remember, Look for the Seal: It’s the Sign of a Better Business.

Tax attorneys

A tax attorney helps their clients with legal issues related to taxes. They can represent individuals or businesses. Hiring a tax attorney is a good option for taxpayers looking to shelter part of their income legally or for those needing specialized advice on municipal bonds, estate planning, and the like.

A tax attorney can also represent clients in tax court and draft appropriate legal documents.

If you are looking for a tax attorney near you, check for that BBB Seal.

How to choose the right tax preparer

Choosing the right kind of tax preparer for you will depend on the complexity of your tax situation. After you’ve decided what qualifications your tax preparer needs, the following tips will help you choose someone trustworthy and competent:

Review the tax preparer’s credentials. EAs, CPAs, and tax attorneys are qualified to represent their clients to the IRS on all matters. Other preparers can help you with forms and basic matters but cannot represent you in case of an audit. Don’t be afraid to ask about these or other qualifications before you hire someone. Check BBB.org. This research will give you a clear view of what you can expect. Look for that BBB Seal: It’s the Sign of a Better BusinessSM.

Be wary of spectacular promises. Consider it a red flag if a tax preparer promises larger refunds than the competition. Some tax preparers base their fees on the amount of your return and may be likely to use shady tax preparation tactics. In addition, use caution when considering “refund anticipation loans” as you could lose a large percentage of your return to commission fees. Always read the fine print!

Consider availability. If the IRS finds errors in your tax forms or decides to perform an audit, will your tax preparer be available to help you with the details? Find out whether you can contact the tax preparer year-round or only during tax season.

Ask about fees ahead of time. Before you agree to any services, read the contracts carefully and understand how much the tax preparer charges for their services. Ask about extra fees for e-filing state, federal, and local returns and fees for any unexpected complications.