Beyond the search: five things to verify before hiring a tax pro.
Typing "CPA near me" returns paid placements, aggregator listings and a handful of reviews written by strangers. None of it tells you whether the licence is active or whether the board has disciplined the holder. This is the checklist we run — manually — on every professional before they appear in our directory. You can run it yourself.
- 01
An active licence with the state board
A CPA licence is issued by a State Board of Accountancy and can lapse, be suspended or be revoked. Search the board's licensee lookup for the state where the professional practises, then cross-check NASBA's CPAverify. Confirm the name, the licence number and — critically — the status line reads active, not expired or inactive.
Red flag: a licence number offered verbally but never in writing.
- 02
A clean disciplinary history
Board discipline is public record: consent orders, fines, suspensions and revocations are published in board minutes and enforcement listings. Most searchers never look. Read the enforcement pages for every state where the professional has held a licence, not only the current one.
Red flag: a licence recently reinstated after suspension, with no explanation offered.
- 03
A valid PTIN and the right representation rights
Anyone paid to prepare a federal return must hold a current Preparer Tax Identification Number. Only CPAs, attorneys and enrolled agents hold unlimited rights to represent you before the IRS. If there is any chance of a notice, an audit or a collection matter, an unenrolled preparer cannot stand in for you.
Red flag: no PTIN listed in the IRS directory of federal tax return preparers.
- 04
Documented experience in your specific situation
General competence is not specialty competence. Multi-state nexus, R&D credits, expatriate filings, trust returns and construction revenue recognition are separate disciplines. Ask how many clients in your exact situation they handled last filing season, and what went wrong in the hardest one.
Red flag: 'we handle everything' with no specifics and no references.
- 05
A fee structure and engagement letter in writing
Before any work begins you should have a written engagement letter stating scope, fee basis, who signs the return, who holds the working papers, and what happens if the IRS sends a notice afterwards. A refund-based or percentage-of-refund fee is prohibited for most return preparation.
Red flag: a fee quoted as a percentage of your refund.
CPA, enrolled agent or preparer — what changes?
"Tax accountant" is not a protected term. Three of the four categories below can legally prepare your return; only three of them can stand between you and the IRS afterwards.
| Title | Credential | IRS representation |
|---|---|---|
| CPA | State-licensed, CPE required | Unlimited IRS representation |
| Enrolled agent | Federally licensed by the IRS | Unlimited IRS representation |
| Tax attorney | State bar admission | Unlimited, plus privilege |
| Unenrolled preparer | PTIN only, no licence | Limited or none |
Questions to ask on the first call
- Which state issued your licence, and what is the number?
- Have you ever been the subject of a board enforcement action?
- Who actually prepares my return, and who reviews it?
- How many returns like mine did you file last season?
- What is your fee basis, and what triggers additional billing?
- If the IRS sends a notice in eighteen months, what happens?
Common questions
- Is a CPA better than a tax preparer?
- A CPA holds a state licence, meets continuing-education requirements and has unlimited IRS representation rights. An unenrolled preparer has none of these. For a simple W-2 return the difference rarely matters; for an entity return, an audit or a multi-state filing, it matters a great deal.
- How do I check if a CPA licence is active?
- Search the licensee lookup published by the State Board of Accountancy in the state where the CPA practises, and cross-check the CPAverify database maintained by NASBA. Both are free and show licence status plus any public discipline.
- What should a CPA cost?
- Individual returns commonly run a few hundred dollars; entity returns, advisory work and audit representation are billed hourly or on a fixed engagement fee. Ask for the fee structure in writing before the engagement letter is signed.
- Does the accountant need to be in my state?
- Usually no. Filing is done electronically and most engagements run remotely. What matters is that the licence is active in a US jurisdiction and that the professional knows the state rules your return touches.