Is Your Tax Preparer Qualified?

If you are one of the thousands of individuals using a tax preparer, especially at one of the larger franchised firms, watch out. There are quite a few unlicensed and unethical tax preparers setting up shop, probably in your area! Only California and Oregon require tax preparers to take a test before practicing. There is no mandatory licensing or testing for any other state. The National Taxpayer Advocate (IRS's taxpayer assistance branch) estimates over 600,000 tax preparers are unregulated. Not very reassuring to say the least.

For the best results, only work with a licensed CPA (certified public accountant) or enrolled agent. They are tested and regulated through ongoing education. If your taxes are very simple, the local rent-a-tax-preparer will probably suffice - but in that case, we recommend you file your own tax return using software or free online.

Remember that only a licensed preparer or a lawyer can represent your before the IRS should the unthinkable occur - an IRS audit. The bottom line is that there is no national standard for tax preparer qualification, so a licensed professional is your best option.