How to Know if Your Tax Preparer Is Legitimate

A professional-looking social media page, a large refund advertisement, or a long list of clients doesn’t automatically tell you whether someone is the right person to prepare your tax return.

You’re potentially trusting your preparer with your Social Security number, income, dependent information, banking information, and other sensitive financial records.

Before handing those documents over, do some homework.

Whether you’re choosing a tax preparer in Jacksonville, St. Johns County, FL, St. Louis, MO, or elsewhere, here are some important things to consider.

1. Do They Have a Valid PTIN?

A Preparer Tax Identification Number (PTIN) is an important starting point.

According to the IRS, individuals who prepare or assist in preparing federal tax returns for compensation generally must have a valid PTIN.

You can read the IRS PTIN requirements for tax return preparers directly from the IRS.

But there’s an important distinction:

Having a PTIN does not, by itself, tell you everything about a preparer’s education, experience, or qualifications.

That’s why your research shouldn’t stop there.

2. Look Beyond the PTIN: Ask About Continuing Tax Education

One qualification taxpayers may encounter is the IRS Annual Filing Season Program (AFSP).

The IRS Annual Filing Season Program is a voluntary program intended to recognize non-credentialed tax return preparers who undertake specified continuing education and meet additional IRS requirements.

Under the general AFSP requirements, participants complete IRS-approved continuing education that includes federal tax law, filing-season updates and ethics requirements. They must also maintain an active PTIN and consent to specified Circular 230 practice obligations.

After successfully completing the applicable requirements, the IRS issues an Annual Filing Season Program – Record of Completion.

Why Could AFSP Matter to a Taxpayer?

Participation demonstrates that the preparer has voluntarily undertaken additional annual tax education beyond simply obtaining a PTIN.

AFSP participants can also be included in the IRS public directory and may have limited representation rights for certain IRS matters involving returns they prepared and signed.

Those rights are not the same as the unlimited representation rights available to attorneys, CPAs and enrolled agents.

You can review the IRS explanation of tax return preparer credentials and qualifications before choosing a professional.

CLC’s Commitment to Continuing Education

At CoreLogix Consulting, LLC, Rhonda Davis holds an IRS Annual Filing Season Program Record of Completion.

For our clients, that represents something important about how CLC approaches tax preparation:

Tax knowledge shouldn’t stop when tax season ends.

Continuing education helps tax professionals remain informed as federal tax rules and filing requirements evolve.

AFSP participation should not be confused with being an enrolled agent, CPA, attorney, or being “IRS certified.” Instead, it’s one additional qualification taxpayers can consider when evaluating a preparer’s commitment to professional development.

3. Will the Paid Preparer Sign Your Return?

Be cautious of a preparer who prepares your return but refuses to identify themselves as the paid preparer.

The IRS advises taxpayers to use a reputable professional who signs the return and includes their PTIN as required.

You can review the IRS’s own recommendations on choosing a tax professional.

Someone who prepares a return for compensation but won’t sign it is often referred to as a ghost preparer.

That’s a warning sign worth taking seriously.

4. Are They Promising a Refund Before Reviewing Your Records?

Be cautious when someone promises:

“I can get you $10,000 back.”

Before they’ve even reviewed your information.

Your refund depends on your actual tax situation.

Income, withholding, dependents, credits, deductions, business activity and other factors determine the outcome.

A responsible preparer needs the facts first.

5. Do They Actually Ask Questions?

Good tax preparation isn’t simply typing numbers from documents into software.

A preparer may need to ask questions to understand whether additional information is necessary.

That’s particularly important for business owners and self-employed taxpayers.

If you operate a Schedule C business, for example, your preparer may need to understand your income sources, business expenses, payment processors and supporting records.

Good questions can be a sign of good due diligence.

6. Do You Understand Their Fees?

Ask how your tax preparation fees are determined before authorizing the work.

Complex returns can reasonably cost more because they require additional schedules, documentation, research, professional judgment and time.

Choosing the cheapest preparer isn’t necessarily the financially responsible choice.

Neither is automatically choosing the most expensive.

Look at the value, qualifications, professionalism and service you’re actually receiving.

7. How Do They Protect Your Information?

A tax professional may handle some of the most sensitive information you possess.

Ask:

How do I submit my documents?

How are those documents stored?

Who has access?

Is a secure portal available?

And remember:

Your IRS account password and authentication codes should remain under your control.

8. Can You Verify Their Qualifications?

The IRS maintains a Directory of Federal Tax Return Preparers with Credentials and Select Qualifications.

The directory includes certain credentialed professionals as well as eligible AFSP Record of Completion holders.

It’s another resource taxpayers can use when researching a potential preparer.

9. Will They Still Be Around After Tax Season?

Consider what happens if you receive a notice in July, discover an issue in September, or need a copy of something months after filing.

An established business presence and year-round availability can matter.

The IRS itself recommends considering whether you’ll be able to contact your preparer after the return is filed.

Choose More Than a Refund

• Your tax return is an important financial document filed under your name.

• Choose the person preparing it accordingly.

• Look for professionalism.

• Ask about qualifications.

• Understand the fees.

• Protect your information.

• And choose someone who values accuracy, compliance and financial responsibility—not simply the biggest number on a refund screen.

  
  

At CoreLogix Consulting, LLC, we believe taxpayers deserve to understand what’s being filed in their name.

Stop leaving money on the table. Make financial responsibility the standard.

CoreLogix Consulting provides tax preparation, bookkeeping, accounting support and QuickBooks support for individuals and small businesses in Jacksonville, St. Johns County, FL, and St. Louis, MO.

CoreLogix Consulting, LLC

980-980-8191

CoreLogixConsulting.com

This article is provided for general educational purposes and is not individualized tax or legal advice. AFSP participation is voluntary and does not constitute IRS certification, enrollment, licensure, or endorsement.