There are several types of tax preparers, including certified public accountants, registered agents, attorneys, and many others who are not professionally licensed. When you hire a preparer, you expect them to have the necessary skills to prepare your tax return accurately and to handle your information responsibly and confidentially.

A tax preparer has access to highly sensitive information: your marital status, income, children, Social Security numbers, and, in general, the details of your financial life. For this reason, choosing the right professional is an important decision.

Most tax preparers offer excellent and professional service. However, every year some taxpayers face financial difficulties because they chose the wrong preparer. To avoid these situations, it's crucial to learn how to select a reliable tax preparer and how to identify so-called "ghost" preparers, who lack professional ethics and don't adhere to established standards.

What type of tax preparer do I need?

Anyone can prepare tax returns as long as they have a Paid Preparer Taxpayer Identification Number (PTIN) issued by the IRS. However, tax preparers have varying levels of education, experience, and training. Therefore, it's important to know each preparer's credentials and qualifications before hiring their services.

In addition, there are programs such as the Voluntary Taxpayer Assistance (VITA) Program, which offers free basic tax return preparation for qualifying taxpayers.

How can I verify the credentials of a tax preparer?

The IRS makes available a Directory of preparers For federal tax returns, you can use a program that provides credentials and qualifications, allowing you to find professionals in your field who have recognized credentials or who have met the requirements of the annual tax season program. It's also advisable to check if the preparer belongs to a recognized professional organization.

What do I do if I have a complaint about a tax preparer?

Tax fraud committed by tax preparers is one of the most common tax scams. The IRS offers guidance to help taxpayers avoid unscrupulous preparers and is committed to investigating those who act improperly.

If you have been financially harmed by misconduct or improper practices on the part of a tax preparer, it is important to file a complaint. Reporting these situations not only protects you but also helps prevent others from being harmed.