How to Choose the Best Tax Preparation Service in the U.S.

Picking the right tax preparer is important. Mistakes can cost you money or lead to audits. To protect yourself, look for licensed professionals—ideally Certified Public Accountants (CPAs). CPAs have formal education, licensure, and ongoing training. More importantly, they have unlimited representation rights with the IRS, which means they can represent you in audits, collections, and appeals.

Start by using official directories, like the IRS Directory of Federal Tax Return Preparers) or your state’s CPA board site. Then compare a few local firms based on the factors below.

Choosing the Right CPA


Criteria: What to Check

  • Credentials: CPA license (verify on state board site), active PTIN, signs your tax return

  • Representation Rights: Only CPAs, enrolled agents, and attorneys have full IRS representation rights

  • Experience: Industry-specific experience (freelancers, small business, real estate, etc.)

  • Services Offered: Tax planning, bookkeeping, audits, payroll, financial consulting

  • Communication & Tools: Secure portal, virtual meetings, e-signatures, cloud bookkeeping

  • Fees & Agreement: Flat fees or hourly rate; get written engagement letter

  • Availability: Year-round support, especially after April 15

Why Choose a CPA?

CPAs go beyond seasonal tax help. They have degrees, passed difficult exams, and follow ethical and continuing education standards. Unlike non-licensed preparers, CPAs can:

  • Help plan taxes year-round

  • Spot deductions you might miss

  • Represent you if the IRS audits or questions your return

Only CPAs, enrolled agents, or attorneys can legally do this for any tax matter.

How to Verify a CPA’s Credentials

Before hiring, check:

  • PTIN: By law, any paid preparer must have a Preparer Tax Identification Number and sign your return. You can verify this through the IRS Directory (external).

  • License: Use the CPA Verify tool from your state’s board or NASBA to confirm the CPA is licensed.

  • Disciplinary Records: Check the Better Business Bureau or your state board to make sure there are no major complaints.

Avoid any “ghost preparer” who refuses to sign your return.

Experience That Matches Your Needs

Ask the CPA:

  • Do you work with people like me (freelancers, small business, real estate)?

  • Are you familiar with the forms I’ll need (e.g., Schedule C, 1099s, multiple states)?

  • Have you represented clients in IRS audits?

Specialized experience matters. A CPA familiar with your industry is more likely to save you time and money.

Services and Technology

Modern CPA firms often offer more than tax filing:

  • Bookkeeping

  • Payroll

  • Quarterly tax planning

  • Retirement or business strategy

Also check how they work:

  • Do they offer a secure client portal?

  • Can you meet virtually or send documents online?

  • Are they available for help outside of tax season?

Fee Structure and Agreements

Be clear about pricing:

  • Ask if it’s a flat fee or hourly rate

  • Understand what’s included (federal, state returns, e-filing, support)

  • Avoid anyone who charges based on your refund amount—that’s illegal

Always get a written engagement letter. This should explain the services, fees, deadlines, and how to cancel if needed.

For Individuals, Freelancers, and Small Businesses

  • Individuals: A basic return may not need a full-service CPA, but if you have investments, home deductions, or education credits, a CPA is helpful.

  • Freelancers: You need help with Schedule C, home office, mileage, and quarterly taxes. Look for CPAs with 1099 client experience.

  • Small Businesses: CPAs should help with payroll, entity structure, and long-term planning. Bonus if they also help train you on bookkeeping tools.

Final Tip

Your tax preparer will see all your finances. Pick someone licensed, experienced, and transparent. Use official directories like irs.treasury.gov and your state board to check for credentials before you sign anything.