How to choose a tax preparer in the US: CPA, EA, CTEC and red flags
Anyone can prepare a US tax return, but you are the one responsible for it. A mistake or a made-up deduction is found on your return, not the preparer's. So choose a preparer as carefully as you'd choose a doctor.
Who's who
- CPA (Certified Public Accountant) — a licensed accountant, licensed by a state board. Only a CPA can audit and attest financial statements. Not every CPA does taxes.
- EA (Enrolled Agent) — licensed by the IRS itself after tax exams. Can represent clients before the IRS on any matter.
- Tax attorney — for disputes, court and criminal matters.
- Registered preparer (CTEC in California) — in California anyone who prepares returns for a fee and isn't a CPA, EA or attorney must register with CTEC: 60 hours of training, an exam, a $5,000 bond, fingerprinting, and 20 hours of education every year. A good fit for returns, bookkeeping and IRS letters, with limited rights to represent clients before the IRS.
Every paid preparer must have a PTIN, the number the IRS issues to return preparers.
Who can do what
For an ordinary return for a family, a self-employed person or a small business, any of them will do if they have experience with your forms. A company audit needs a CPA. A serious dispute with the IRS needs an EA, CPA or attorney. A good preparer will tell you when your question is outside their scope.
How to check
- a California registered preparer — the lookup on the CTEC site;
- a CPA — the license lookup at the California Board of Accountancy;
- an EA — the status check on IRS.gov;
- the IRS Directory of Federal Tax Return Preparers lists credentialed preparers.
Red flags, according to the IRS
- won't sign the return or put their PTIN on it — a "ghost preparer";
- charges a percentage of your refund or promises a big refund up front;
- wants your refund deposited into their account;
- cash only, no receipt;
- asks you to sign a blank or incomplete return;
- offers to "add" expenses or children that don't exist.
What to ask on the first call
- which forms and situations do you handle most;
- how will you get my documents and how do you protect my data;
- what will it cost and what does the price depend on;
- will you be available after April if an IRS letter arrives;
- will you sign the return and include your PTIN.
Language matters
If it's easier for you to talk about money in your native language, that's not a whim. You'll understand what you sign and won't miss something important, like a foreign account or income a preparer wouldn't think to ask about.
I'm a registered tax preparer in California (CTEC A353025) and New York (NYTPRIN 13189644), working in English and Russian with clients in every state. More about what I do.
Sources: IRS: Choosing a tax professional, IRS: Ghost preparers, CTEC, IRS Directory of Federal Tax Return Preparers. Checked October 26, 2026.