1. Confirm they have a PTIN
Anyone paid to prepare a federal return must have a Preparer Tax Identification Number issued by the IRS. This is not optional and it is not a courtesy. Ask for it. A preparer who is cagey about their PTIN is telling you something.
2. Check their credential in the IRS directory
The IRS publishes a Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. You can search by ZIP code and filter by credential: Enrolled Agent, CPA, attorney, or Annual Filing Season Program participant. If someone claims a credential and does not appear, ask why.
Credential matters most for what happens after filing. Only an EA, CPA, or attorney can represent you before the IRS with unlimited rights. Details in who can represent you before the IRS.
3. Ask who signs the return
A paid preparer is required to sign the return and enter their PTIN. A "ghost preparer" charges you, then prints the return and tells you to file it yourself, or e-files it as if it were self-prepared. The IRS warns about this every year, and it is the single loudest red flag in the business.
Why they do it: an unsigned return leaves no trail back to them when the inflated deductions get caught. Guess whose name is on the signature line instead.
They refuse to sign the return. They base their fee on a percentage of your refund. They ask you to sign a blank or incomplete return. Or your refund is set to land in their bank account.
4. Understand how they charge
Legitimate structures: a flat fee for the engagement, a fee per form or schedule, or an hourly rate. Any of those is fine as long as you know it up front.
What is not fine is a fee based on a percentage of your refund. It creates an incentive to inflate the refund, which is your problem when it is examined, not theirs. Get the fee in writing before work starts. More on pricing in what tax preparation actually costs.
5. Make sure the refund goes to you
Your refund should be deposited into an account in your name. Check the routing and account numbers on the return before you sign. A preparer directing any part of your refund into their own account is a serious problem, not a convenience.
6. Ask what happens in July
Pop-up storefronts vanish in May. Notices arrive in September. Ask directly: are you available year round, and if the IRS writes to me about this return, what do you do? A good answer sounds like "send it to me, that is what I am here for." A bad answer is a shrug.
7. Expect them to e-file, and to ask questions
A paid preparer who files more than ten returns a year is generally required to e-file. And a preparer who does not ask you questions is not doing the job. Real preparation involves asking about your year: a new baby, a move, a side business, a house, a college bill, a rollover. If your entire interaction is dropping off documents and picking up a PDF, you paid for data entry.
The full red flag list
- Will not sign the return or provide a PTIN.
- Fee is a percentage of the refund.
- Asks you to sign a blank, incomplete, or unreviewed return.
- Promises a specific refund amount before seeing your documents.
- Advertises "bigger refunds than anyone else."
- Wants your refund deposited anywhere other than your own account.
- Suggests deductions or dependents you cannot support with records.
- Does not ask to see your documentation, only your numbers.
- No physical address, no professional email, no year-round presence.
- Cannot tell you plainly what credential they hold.
Questions worth asking on the first call
- What credential do you hold, and what is your PTIN?
- Do you handle situations like mine regularly? (Name yours: rental, S corp, multi-state, equity comp.)
- How do you charge, and what is included?
- Who actually prepares my return, and who reviews it?
- If a notice comes, do you represent me, and at what cost?
- How do we exchange documents securely?
- What is your turnaround, and when do you stop taking new returns for the season?
One thing nobody tells you
You sign the return. Legally, the contents are your responsibility, not your preparer's, no matter who typed them. So read it before you sign. Look at the income lines, the deduction totals, the dependents, and the bank information. If something is there that you cannot explain, ask before you sign, not after.
Frequently asked questions
What is a ghost preparer?
Someone who is paid to prepare your return but refuses to sign it or enter their PTIN, leaving it to look self-prepared. It is against the rules for paid preparers, and it usually signals inflated deductions or credits that will come back to you, since your signature is the only one on the return.
How do I verify a tax preparer is legitimate?
Ask for their PTIN and credential, then look them up in the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. Confirm they will sign the return, get the fee in writing, and check that the refund is directed to your own bank account.
Is it a problem if my preparer charges a percentage of my refund?
Yes. It creates a direct incentive to overstate your refund, and you are the one who answers for the return. Reputable preparers charge a flat fee, a per-form fee, or an hourly rate.
Am I responsible if my tax preparer makes a mistake?
You are responsible for what is on your return, including the tax and interest on any understatement. Preparers can face their own penalties, and in some cases penalty relief is available to you, but the IRS collects the tax from the taxpayer. Read the return before you sign it.
What should I do if I think my preparer did something wrong?
You can report a preparer to the IRS using Form 14157, Return Preparer Complaint, and Form 14157-A if a return was filed or altered without your consent. Then get a credentialed practitioner to review the return and, if needed, amend it.
Looking for someone who signs their work?
I am an Enrolled Agent, I sign every return I prepare, I charge a flat fee you see before we start, and I am here in July when the mail shows up. Tell me a bit about your situation and we will see if it is a fit.
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