Key Takeaways
- Avoid preparers who promise large refunds or charge fees based on a percentage of your refund
- Verify credentials and representation rights. Only CPAs, Enrolled Agents, and tax attorneys can represent you in all IRS matters
- Confirm they have a valid PTIN and a real, year-round office
- Choose someone who communicates clearly, plans proactively, and prioritizes compliance over shortcuts
When you’re facing IRS notices or mounting penalties, the Indiana advisor you choose becomes your most critical line of defense.
Because you need more than a return-filer. You need a trusted expert to navigate you out of a high-stakes financial corner.
I want to help you understand what to look for (and what to avoid) to make sure your case is handled with integrity.
What are the red flags to watch out for when choosing a tax preparer?
If a tax preparer’s primary selling point is getting you a huge return, that should give you pause. Because some preparers base their fees on a percentage of your refund.
The IRS specifically warns against refund-based fee structures because they create an incentive to push the limits. When a preparer benefits from inflating your refund, the risk shifts to you. If the return gets audited later, you’re the one responsible.
Another red flag is any Marion County tax preparer claiming to be “IRS endorsed.” That’s fake news. The IRS does not endorse private tax preparers.
You’ll also want to verify that the preparer has a valid Preparer Tax Identification Number (PTIN). All paid preparers are legally required to have one. (The IRS maintains a directory where you can sniff out someone’s credentials.)
You can also check for complaints through the Better Business Bureau and read online reviews.
How to choose a tax advisor with the right credentials
A PTIN holder with no other credentials is considered a non-credentialed preparer. They’re the lowest tier of tax professionals. They can prepare returns, but their ability to represent you before the IRS is limited.
An IRS Annual Filing Season Program participant completes continuing education each year and has limited representation rights. This is a step above a basic PTIN holder, but still not full representation authority.
The highest levels of credentialing are:
- Certified Public Accountants (CPAs)
- Enrolled Agents (EAs)
- Tax Attorneys
Only these professionals can represent you before the IRS in all tax matters (audits, collections, appeals, negotiations, and other such sticky situations). So if you’re dealing with tax debt or an ongoing dispute, you want someone who can stay with you through the entire process.
What are the most important things to look for in a tax preparer?
Technical credentials are important. But they’re not the only factor. When considering how to choose a tax advisor, I recommend looking at these 3 big factors:
1. Clear communication. If your tax advisor can’t explain your situation in plain English, that’s a problem. You should understand what’s happening and why it’s happening, and be able to grasp what your options are.
Also consider the tax advisor’s accessibility. Can you reach them to ask questions? Do they return calls quickly? To be able to make tax deadlines, you need someone who’s easy to communicate with.
2. Proactive planning. If someone only talks about filing your return and nothing about preventing future issues, that’s incomplete advice.
A strong advisor looks beyond your immediate crisis. They help you resolve today’s problem while putting structures in place so you’re not back in the same position next year.
3. Ethics. You should never feel pressured into aggressive or questionable strategies. Compliance is not optional. A professional who is willing to bend the rules for you may also bend them in ways that create exposure later.
What questions should I ask before choosing a tax advisor?
Ask practical questions. Like, is your office open year-round?
Some Indiana tax offices open in January and close after filing season. But IRS notices can show up any month of the year.
Also, ask how long they’ve been preparing returns. The longer someone has been practicing, the more likely they’ve seen situations similar to yours.
But lack of years in the practice doesn’t necessarily mean they can’t help in your situation. So ask how their expertise applies to your situation. Many preparers specialize in specific areas of tax law.
Also, to test their credibility, it’s helpful to know about their continuing education and professional organization memberships.
And as you’ve likely already done, ask for referrals from colleagues, friends, or family. And especially from people with similar financial profiles to yours.
Should I choose a local tax advisor?
One suggestion I’ll always stand behind: Choose someone local.
Not because large firms are automatically bad. But because when you work with someone local, your relationship typically starts with conversation, not a scripted intake process.
Taxes aren’t just numbers. Your career goals, your family plans, and your long-term financial direction all factor into how your tax situation should be handled.
And a local tax advisor has a much greater ability to be acquainted with your personal situation.
And don’t just go with the first local tax pro you talk to. Comparison shopping is healthy. Evaluate the benefits each option provides and read reviews. Analyze any patterns you see in client feedback.
Final thoughts
If there’s ONE thing I want you to take away here, it’s to not take on the IRS by yourself.
Having a qualified professional in your corner year-round brings protection that can make a huge difference in your resolution outcome (along with major emotional relief).
So, if you’re unsure how to choose a tax advisor wisely, I’m here to answer your questions.
Start the search thoughtfully. And might I propose that you start your search right here, with me. I’d love to help make your complicated tax situation less stressful.
calendly.com/dlgappts/initial-meeting
FAQs
“Can a regular tax preparer represent me in an IRS audit?”
While any paid preparer with a PTIN can file your return, only Enrolled Agents (EAs), CPAs, and Tax Attorneys have unlimited representation rights. This means they can stand in your place, speak to the IRS on your behalf, and handle appeals or collections. If you’re facing a serious IRS problem, a basic seasonal preparer won’t have the authority to fight the case for you.
“Is it a red flag if a tax pro promises they can settle my debt for pennies?”
Yes, a massive one. This is often called “pennies on the dollar” marketing. While programs like an Offer in Compromise (OIC) exist, they have very strict eligibility requirements. A trustworthy specialist will never promise a specific outcome before thoroughly reviewing your financial records. If they lead with a guarantee rather than an investigation, proceed with caution.
“Why shouldn’t I hire a tax preparer who charges a percentage of my refund?”
The IRS strictly prohibits preparers from charging fees based on a percentage of your refund. This practice creates a conflict of interest where the preparer might aggressively claim deductions to increase their own payday. If the IRS flags those deductions later, you are the one legally and financially responsible for the back taxes, interest, and penalties.
“What is the difference between an Enrolled Agent and a CPA for tax problems?”
Both are high-level credentials, but their focus differs. Enrolled Agents (EAs) are federally authorized by the U.S. Treasury. They specialize specifically in taxation and are often the best choice for technical IRS collections and appeals.
CPAs are licensed by the state. While many specialize in taxes, others focus on auditing or general accounting. For resolution, you want whichever professional has the most experience specifically dealing with the IRS Collections or Examination divisions.
“Do I need a local tax advisor, or can I use a national tax relief company?”
A local advisor typically offers a more personalized approach than a national company. Large firms often use scripted intake processes and may pass your case between different junior staff. A local specialist understands your community and is available for face-to-face meetings, ensuring you aren’t just another case number in a database.
“What happens if I get an IRS notice after tax season ends?”
Many pop-up tax shops close their doors on April 15th. This is why you should ask if your advisor’s office is open year-round. If you receive a notice in August and your preparer is nowhere to be found, you’re left handling a complex legal matter on your own. Always choose an advisor with a permanent, year-round practice.
“How do I verify if a tax professional is actually qualified?”
Don’t just take their word for it. You should check the IRS Directory of Federal Tax Return Preparers to see their credentials and PTIN status, verify a CPA’s license through your State Board of Accountancy, and check the Better Business Bureau for complaints or patterns of ghosting clients.