<p>The holidays are behind us; you know what that means—it’s tax season! But before you start gathering your W-2s and receipts, there’s an important question: <i>Do you know who will prepare your taxes this year?</i></p><p>With a nationwide shortage of Certified Public Accountants (CPAs) and tax professionals, waiting too long to find a preparer could leave you scrambling—and vulnerable to scams. Here’s how to protect yourself and find a trusted tax preparer.</p><h3>Who Can Prepare Your Taxes?</h3><p>When hiring a tax professional, your preparer will likely fall into one of three categories:</p><ul><li><strong>Certified Public Accountant (CPA):</strong> These professionals undergo rigorous education, exams, and licensing requirements. Many specialize in tax preparation and can also provide broader financial guidance.<br /> </li><li><strong>Enrolled Agent (EA):</strong> Licensed by the IRS, EAs are tax experts who can prepare and file returns, represent clients before the IRS, and provide tax planning services.<br /> </li><li><strong>Tax Attorney:</strong> These legal professionals specialize in tax law and are particularly useful for complex tax situations, audits, or disputes.</li></ul><p>Each of these professionals is highly qualified—but the problem is there aren’t <a href="https://eajournal.naea.org/2024/06/are-enrolled-agents-finally-having-a-moment/">enough of them</a>.</p><p>There is a growing shortage of CPAs and tax professionals, mainly because fewer young people are entering the field. <a href="https://www.morganhunter.com/2024/12/19/the-accounting-shortage-what-it-means-for-talent-and-businesses-and-how-morgan-hunter-can-help/">Some firms</a> are even hiring high school interns at $22 an hour to recruit future CPAs.</p><p>What does this mean for you?</p><ul><li>Longer wait times to book a tax preparer</li><li>Higher fees due to increased demand</li><li>Greater risk of falling into the hands of fraudulent preparers</li></ul><p>When people are desperate to file their returns, they can become easy targets for scammers who fake credentials or engage in tax fraud.</p><h3>How to Avoid Tax Scams and Find a Qualified Preparer</h3><p>To protect yourself, follow these IRS-recommended steps when choosing a tax preparer:</p><h3>1. Choose a Year-Round Tax Preparer</h3><p>A reputable preparer should be available beyond tax season. You don’t want your tax preparer to disappear if you get audited.</p><h3>2. Verify Their IRS Credentials</h3><p>Ask for the IRS Preparer Tax Identification Number (PTIN). All paid tax return preparers must register with the IRS and enter their PTIN on every return they file.</p><p>Check their status using the IRS Directory of Federal Tax Return Preparers at<a href="https://www.irs.gov"> IRS.gov</a>.</p><h3>3. Look for Professional Credentials</h3><p>Ask if the preparer holds a credential such as:</p><ul><li>CPA (Check with the State Board of Accountancy)</li><li>Enrolled Agent (Verify at <a href="http://irs.gov">IRS.gov</a> under "Verify Enrolled Agent Status")</li><li>Tax Attorney (Confirm with their State Bar Association)</li></ul><p>Additionally, inquire about continuing education—since tax laws change frequently, professionals should stay current.</p><h3>4. Be Cautious About Fees</h3><p>Beware of tax preparers who:</p><ul><li>Charge fees based on a percentage of your refund</li><li>Claim they can get you a larger refund than competitors</li></ul><p>A legitimate preparer should charge a flat or hourly rate based on the complexity of your return.</p><h3>5. Verify IRS E-File Capability</h3><p>Most tax preparers handling more than 10 clients must file electronically. If your preparer refuses to e-file, that’s a red flag.</p><h3>6. Ensure Proper Documentation</h3><p>A trustworthy tax preparer will ask for the following:</p><ul><li>Your W-2 and 1099 forms (not just a pay stub)</li><li>Records of deductions and credits</li></ul><p>If a preparer doesn’t ask for supporting documents, walk away. The IRS requires proper documentation to verify your return.</p><h3>7. Understand Representation Rules</h3><p>Only CPAs, Enrolled Agents, and tax attorneys can represent you before the IRS if you're audited.</p><p>Non-credentialed tax preparers—including your math-savvy cousin Bill—cannot represent you in an audit.</p><h3>8. Never Sign a Blank or Incomplete Tax Return</h3><p>Please review your return carefully before signing. Ensure all information is accurate, and ask questions if anything appears incorrect.</p><h3>9. Your Refund Should Go to You—Not the Preparer</h3><p>Check the routing and account number on your tax return to ensure your refund is deposited into your own account, not your preparer’s.</p><h3>Looking for a Faith-Based Financial Professional?</h3><p>If you want to work with a tax professional who aligns with biblical financial principles, consider finding a CPA, Enrolled Agent, or tax attorney with the <a href="https://www.faithfi.com/find">Certified Kingdom Advisor (CKA®)</a> designation.</p><p>To find a trusted, faith-based financial professional, visit<a href="https://faithfi.com"> FaithFi.com</a> and click <a href="https://www.faithfi.com/find">“Find a Professional.”</a></p><p>With tax season here, choosing a reputable, qualified tax preparer is more important than ever. Don’t wait until the last minute—start your search today to avoid scams and ensure your taxes are filed accurately and ethically.</p><h3>On Today’s Program, Rob Answers Listener Questions:</h3><ul><li>As I turn 70 and a half, is it advantageous for me to start doing my charitable giving from my IRA? Or should I wait until 73, when I have to do the required minimal distribution (RMD)?</li><li>I have $10,000 in a savings account with my local bank, but I only earn about 10 cents in monthly interest. Since I've never invested before, I'm interested in investing that money elsewhere to create some extra available money. What would you suggest?</li><li>I ran a landscaping company into the ground, but I've now rededicated my life to Christ and started a new handyman business. I need help managing the money in my company and being a better steward of the resources God has entrusted me with. I'm looking for guidance on the best direction to take.</li><li>Considering Trump is now in his second term, would it be a good time for me to sell my house and buy another home? Should I wait? I'm thinking about the potential impact on prices and interest rates.</li></ul><h3>Resources Mentioned:</h3><ul><li><a href="https://faithfi.com/give">Faithful Steward: FaithFi’s New Quarterly Publication</a></li><li><a href="https://www.bankrate.com/">Bankrate</a></li><li><a href="https://www.mycccu.com/faithfi/">Christian Community Credit Union (CCCU)</a></li><li><a href="https://www.amazon.com/Business-Book-Complete-Principles-Workplace/dp/0785287973/ref=sr_1_1?crid=3I9NEOFOBJ87I&amp;dib=eyJ2IjoiMSJ9.wANIyMY50fB3y5wP32lTVf62QQENrpaQhHyWEUrqy1d2DVumCkyxXmGMU-e5YmXXe11HyIi809OAHTi9com5rHgyoGfpR-caZ9-GtOb-3krBxLNbXf7Y5fPUR1Jvt5CI-7UtCeO9Y2ZgUg6U3mmw-dBboTKkiw1WBl4TMwusJ8UMV5F2hLasJPcbzreqHAO-QwgveQIhiGxo5eKg2QAZB545LDBZwp3AU32PASRZtuo.UDRmavqqW4u6oNgdBYKg4xemrvUezIrTWjv08yVLesE&amp;dib_tag=se&amp;keywords=business+by+the+book+by+larry+burkett&amp;qid=1738187487&amp;sprefix=business+by+the+book%2Caps%2C106&amp;sr=8-1">Business By The Book: Complete Guide of Biblical Principles for the Workplace by Larry Burkett</a></li><li><a href="https://www.faithfi.com/sparrows">Look At The Sparrows: A 21-Day Devotional on Financial Fear and Anxiety</a></li><li><a href="https://www.faithfi.com/rtg">Rich Toward God: A Study on the Parable of the Rich Fool</a></li><li><a href="https://www.faithfi.com/find">Find a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)</a></li><li><a href="https://www.faithfi.com/manage">FaithFi App</a></li></ul>
<p><p>Remember, you can call in to ask your questions most days at (800) 525-7000. Faith &amp; Finance is also available on the <a href="https://www.moodyradio.org/programs/faith-and-finance/">Moody Radio Network </a>and <a href="https://afr.net/podcasts/faith-finance/">American Family Radio</a>. Visit our website at <a href="https://www.faithfi.com/">FaithFi.com </a>where you can join the FaithFi Community <a href="https://www.faithfi.com/give">and give </a>as we expand our outreach.</p></p>

FaithFi

Faith & Finance is a daily radio ministry hosted by Rob West. The program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

Faith & Finance with Rob West

The holidays are behind us; you know what that means—it’s tax season! But before you start gathering your W-2s and receipts, there’s an important question: Do you know who will prepare your taxes this year?

With a nationwide shortage of Certified Public Accountants (CPAs) and tax professionals, waiting too long to find a preparer could leave you scrambling—and vulnerable to scams. Here’s how to protect yourself and find a trusted tax preparer.

How to Choose a Trustworthy Tax Preparer This Tax Season

FaithFi: Faith & Finance | Feb 6, 2025

Show Notes

Where Faith Meets Finance

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