How to Choose a Trustworthy Tax Preparer This Tax Season

The holidays are behind us; you know what that means—it’s tax season! But before you start gathering your W-2s and receipts, there’s an important question: Do you know who will prepare your taxes this year?

With a nationwide shortage of Certified Public Accountants (CPAs) and tax professionals, waiting too long to find a preparer could leave you scrambling—and vulnerable to scams. Here’s how to protect yourself and find a trusted tax preparer.

Who Can Prepare Your Taxes?

When hiring a tax professional, your preparer will likely fall into one of three categories:

• Certified Public Accountant (CPA): These professionals undergo rigorous education, exams, and licensing requirements. Many specialize in tax preparation and can also provide broader financial guidance.
   
• Enrolled Agent (EA): Licensed by the IRS, EAs are tax experts who can prepare and file returns, represent clients before the IRS, and provide tax planning services.
   
• Tax Attorney: These legal professionals specialize in tax law and are particularly useful for complex tax situations, audits, or disputes.

Each of these professionals is highly qualified—but the problem is there aren’t enough of them.

There is a growing shortage of CPAs and tax professionals, mainly because fewer young people are entering the field. Some firms are even hiring high school interns at $22 an hour to recruit future CPAs.

What does this mean for you?

• Longer wait times to book a tax preparer
• Higher fees due to increased demand
• Greater risk of falling into the hands of fraudulent preparers

When people are desperate to file their returns, they can become easy targets for scammers who fake credentials or engage in tax fraud.

How to Avoid Tax Scams and Find a Qualified Preparer

To protect yourself, follow these IRS-recommended steps when choosing a tax preparer:

1. Choose a Year-Round Tax Preparer

A reputable preparer should be available beyond tax season. You don’t want your tax preparer to disappear if you get audited.

2. Verify Their IRS Credentials

Ask for the IRS Preparer Tax Identification Number (PTIN). All paid tax return preparers must register with the IRS and enter their PTIN on every return they file.

Check their status using the IRS Directory of Federal Tax Return Preparers at IRS.gov.

3. Look for Professional Credentials

Ask if the preparer holds a credential such as:

• CPA (Check with the State Board of Accountancy)
• Enrolled Agent (Verify at IRS.gov under "Verify Enrolled Agent Status")
• Tax Attorney (Confirm with their State Bar Association)

Additionally, inquire about continuing education—since tax laws change frequently, professionals should stay current.

4. Be Cautious About Fees

Beware of tax preparers who:

• Charge fees based on a percentage of your refund
• Claim they can get you a larger refund than competitors

A legitimate preparer should charge a flat or hourly rate based on the complexity of your return.

5. Verify IRS E-File Capability

Most tax preparers handling more than 10 clients must file electronically. If your preparer refuses to e-file, that’s a red flag.

6. Ensure Proper Documentation

A trustworthy tax preparer will ask for the following:

• Your W-2 and 1099 forms (not just a pay stub)
• Records of deductions and credits

If a preparer doesn’t ask for supporting documents, walk away. The IRS requires proper documentation to verify your return.

7. Understand Representation Rules

Only CPAs, Enrolled Agents, and tax attorneys can represent you before the IRS if you're audited.

Non-credentialed tax preparers—including your math-savvy cousin Bill—cannot represent you in an audit.

8. Never Sign a Blank or Incomplete Tax Return

Please review your return carefully before signing. Ensure all information is accurate, and ask questions if anything appears incorrect.

9. Your Refund Should Go to You—Not the Preparer

Check the routing and account number on your tax return to ensure your refund is deposited into your own account, not your preparer’s.

Looking for a Faith-Based Financial Professional?

If you want to work with a tax professional who aligns with biblical financial principles, consider finding a CPA, Enrolled Agent, or tax attorney with the Certified Kingdom Advisor (CKA®) designation.

To find a trusted, faith-based financial professional, visit FaithFi.com and click “Find a Professional.”

With tax season here, choosing a reputable, qualified tax preparer is more important than ever. Don’t wait until the last minute—start your search today to avoid scams and ensure your taxes are filed accurately and ethically.

On Today’s Program, Rob Answers Listener Questions:

• As I turn 70 and a half, is it advantageous for me to start doing my charitable giving from my IRA? Or should I wait until 73, when I have to do the required minimal distribution (RMD)?
• I have $10,000 in a savings account with my local bank, but I only earn about 10 cents in monthly interest. Since I've never invested before, I'm interested in investing that money elsewhere to create some extra available money. What would you suggest?
• I ran a landscaping company into the ground, but I've now rededicated my life to Christ and started a new handyman business. I need help managing the money in my company and being a better steward of the resources God has entrusted me with. I'm looking for guidance on the best direction to take.
• Considering Trump is now in his second term, would it be a good time for me to sell my house and buy another home? Should I wait? I'm thinking about the potential impact on prices and interest rates.

Resources Mentioned:

• Faithful Steward: FaithFi’s New Quarterly Publication
• Bankrate
• Christian Community Credit Union (CCCU)
• Business By The Book: Complete Guide of Biblical Principles for the Workplace by Larry Burkett
• Look At The Sparrows: A 21-Day Devotional on Financial Fear and Anxiety
• Rich Toward God: A Study on the Parable of the Rich Fool
• Find a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)
• FaithFi App

Remember, you can call in to ask your questions most days at (800) 525-7000. Faith & Finance is also available on the Moody Radio Network and American Family Radio. Visit our website at FaithFi.com where you can join the FaithFi Community and give as we expand our outreach.