Our experts answer readers' tax questions and write unbiased product reviews (here's how we assess tax products). In some cases, we receive a commission from our partners; however, our opinions are our own.
Hero Images Inc/Getty
- Start your search for a tax preparer or tax advisor before the peak of tax season.
- An IRS directory lists CPAs, enrolled agents, and attorneys who can prepare returns and give advice.
- Always double-check a professional's credentials against national or state agency databases.
If the idea of doing your own taxes stresses you out or you simply don't have the time, it's probably worth hiring a tax preparer or tax advisor. A professional can help you get organized and make sure you're getting all the credits and deductions you qualify for.
How to find the best tax preparer or advisor near you
Like finding the right doctor or therapist, it can take time to find the best tax preparer or tax advisor for your situation.
"When or how someone should start looking for a tax advisor or preparer depends in part on the level of comfort and knowledge with taxes," says Kristine Stevenson Seale, an enrolled agent, tax resolution specialist, and financial coach based in Austin, Texas. "Some fear the IRS, and are very uncomfortable preparing the most basic of tax returns."
Other people may be comfortable with a DIY approach using tax software, but they leave money on the table because they hurry through questions and prompts or don't understand what's being asked, Seale says.
Tax season begins in January and runs through April 15, 2024. As the tax deadline approaches, you may find that the best tax preparers or tax advisors in your area are no longer taking on new clients, so it's wise to start your search early.
1. Understand your options
There are several professionals who may be qualified to help you prepare your federal and state tax returns, but fewer who can also legally provide tax-planning advice.
No matter what type of assistance you need, be sure the individual has the required preparer tax identification number (PTIN) from the IRS. The current cost to obtain or renew a PTIN is $30.75.
"This is not a professional credential and just about anyone can get one," Seale says.
However, many tax preparers who have a PTIN and no further credentials are highly experienced after working many tax seasons, she adds. Their biggest limitation is the type of advice they can provide.
If you have specific tax planning needs and a complex situation, an enrolled agent, tax attorney, or certified public accountant is likely a better fit. They have completed years of study and have extensive knowledge of tax law.
"If you need tax advice because you have a rental real estate business with 10 rental properties for instance, seek a credentialed tax professional that specializes in real estate," Seale says. "If you only need to understand how contributing to your 401(k) at work will affect your tax return, buying an hour of any enrolled agent or CPA's time is money well spent."
Here's more about the capabilities of various tax professionals:
- Annual Filing Season Program Participants: These professionals have a PTIN but no other tax-related credentials and cannot represent you before the IRS if you are audited or face a tax compliance issue.
- Enrolled Agent: These professionals are licensed by the IRS to represent taxpayers during audit or noncompliance issues, and are proficient in federal tax planning and individual and business return preparation. They also complete 72 hours of continuing education every three years.
- Certified public accountant: CPAs are licensed by state or US territory accountancy boards to prepare tax returns and assist taxpayers with their planning needs. They are required to pass an exam, meet ethical standards, and complete continuing education requirements.
- Tax attorney: Attorneys are licensed by their state board. A tax attorney has demonstrated expertise in areas of federal and/or state tax preparation and complex tax planning.
2. Ask friends and family for referrals
Tax preparation is high stakes, and you want to be sure you're working with a trusted and qualified professional. Before searching for a tax preparer online, consider asking friends and family who they work with and what their experience is like.
According to the 2020-2021 National Society of Accountants' income and fees report, more than 97% of accountants and tax preparers used referrals to gain new business. Some accountants may even provide a discount to people who are referred by an existing client.
3. Check professional databases or use an online service
To find a tax preparer who holds a professional credential, use the IRS directory. You can filter by zip code and the specific credentials you're seeking, including CPA, tax attorney, and enrolled agent.
Online tax software companies can also connect you with tax preparers in your area. H&R Block, for example, offers a range of expert services, from assistance via live chat to full-service, in-person tax prep.
4. Verify credentials
It can take up to a month for the IRS directory of credentialed tax preparers to update if there's a change in a professional's status, the agency says. It's a good idea to cross-check credentials with national or state agencies, including:
- National Association of State Boards of Accountancy
- National Association of Enrolled Agents
- National Association of Tax Professionals
- American Academy of Attorney-CPAs
- American Bar Association (state directories)
Tips for choosing the best tax preparer
Here are some tips to remember as you narrow down your search for a tax preparer.
- Check their history with the Better Business Bureau. Browse through reviews and complaints of BBB-accredited businesses.
- Ask about fees up front. Tax professionals typically charge per-form, per-item, or per-hour.
- Ask if they file electronically. E-filing your tax return is safer and more accurate than mailing it, and usually gets your refund sent to you sooner. There should not be an extra fee for e-filing.
- Ask about their experience working with people in your situation. If you're self-employed or you manage multiple rental properties, for instance, look for someone with plenty of related experience.
- Ask about communication preferences. How can you get ahold of the tax preparer during tax season and the off-season? Do they typically collect documents and forms via snail mail or can you upload them to an online portal?
- Carefully review the letter of engagement. Before you hire a tax preparer, they should provide a document detailing the services you're paying for.
How to choose a tax preparer frequently asked questions
Who is the best person to get tax advice from?
CPAs, enrolled agents, and tax attorneys have the highest credentials of any tax professional. They are authorized to prepare tax returns, represent clients before the IRS, and help with year-round tax planning.
What are the main requirements a tax preparer has to meet?
A tax preparer must obtain a preparer tax identification number (PTIN) from the IRS in order to prepare a tax return in exchange for compensation.
How much do most tax preparers charge?
In general, the more forms you need to file, the more you'll pay for tax preparation services. According to a 2020 accounting industry survey, the average fee charged to prepare and file form 1040, plus a state return, was $220. With itemized deductions, it was $323.
Is it better to go to a tax preparer or use TurboTax?
Whether you should do your own taxes or hire a professional depends on how much time and patience you have, and the complexity of your tax and financial situation. If you own a business or a house, or have multiple streams of income, it's usually worth hiring a tax preparer to help you avoid possible mistakes and make the most of credits and deductions available to you.