7 Questions to Ask Your Tax Preparer Before You Sign

Anyone can hang a sign that says 'Tax Preparation.' The IRS does not license most people who prepare returns. These seven questions help you tell a serious professional from someone who's just filling in boxes.

1. Are you an Enrolled Agent or CPA?

Enrolled Agents (EAs) are licensed by the U.S. Treasury after passing three IRS exams. CPAs are licensed by their state. Attorneys can also represent taxpayers. Anyone outside those three cannot represent you at the IRS in most matters. That doesn't automatically make them bad — but it's the first thing to ask.

2. Will you sign my return with your PTIN?

Every paid preparer is legally required to have a Preparer Tax Identification Number (PTIN) and sign the return. If someone prepares your return but tells you to sign as 'self-prepared,' that's a huge red flag. Walk out.

3. How do you charge?

The right answer is a flat fee or a clear hourly rate, quoted before the work starts. The wrong answer is 'a percentage of your refund.' That gives the preparer a reason to inflate credits and deductions — and you're the one who signs the return.

4. What credits and deductions did you check for me?

A good preparer can name them. Ask specifically: Did you look at the Earned Income Tax Credit? The Child and Dependent Care Credit? Education credits? Saver's Credit? Retirement deductions? If they can't tell you what they reviewed, they probably didn't review much.

5. Will you represent me if the IRS contacts me?

IRS letters usually show up months after filing. You want to know: if a letter comes in July or October, will this person answer your call? EAs, CPAs, and attorneys can represent you before the IRS. Seasonal pop-up shops often can't — and often aren't even open.

6. How do you keep my personal data safe?

Your tax return has your Social Security number, income, bank accounts, and dependents' info. Ask how they store documents, whether their portal uses encryption, and how they send finished returns. 'I just email it back to you' is not a good answer.

7. What documents do you need from me?

A thorough preparer will give you a checklist — W-2s, 1099s, 1098-T for tuition, mortgage interest, daycare provider info, retirement contribution statements, and last year's return. If the answer is just 'bring your W-2,' they may be missing a lot.

One more thing

Trust your gut. You should leave the first meeting feeling like your questions were answered in plain English, not brushed aside. A good preparer wants you to understand your own return.