Don't wait until 2025 to find a tax preparer: Why one expert would '100% recommend starting now'

• It is recommended to begin searching for a preparer for the 2025 filing season now, according to experts.
• It is crucial to vet paid tax preparers because there are no federal licensing or competency requirements, and some of them lack training or experience.
• Verify credentials through the IRS and state licensing websites.

It is recommended to begin searching for a tax preparer for the 2025 filing season, according to experts.

Amid the industry's staffing shortage, particularly for areas of specialty expertise, such as cryptocurrency or international taxes, finding a preparer could take longer. Elizabeth Young, director of tax practice and ethics for the American Institute of CPAs, strongly advised starting now, saying, "Don't wait until the beginning of 2025."

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It may be too late if you wait until January or early next year, according to Young.

Before hiring a tax preparer for the 2025 filing season, it is important to consider several key things.

Most tax preparers don't have credentials

Although there is a talent shortage, it is crucial to vet tax preparers because "almost anyone can claim to be one," Young stated.

Over 160 million federal tax returns are submitted to the IRS annually, with the majority of them being prepared by professionals, as stated in the National Taxpayer Advocate's 2024 Purple Book of legislative recommendations.

The report pointed out that there are no federal licensing or competency requirements for paid tax preparers, and some of them lack training or experience. Under current law, the minimum requirement for paid professionals is an IRS-issued preparer tax identification number, or PTIN.

Professionals with unlimited representation rights before the IRS, such as certified public accountants, enrolled agents, and attorneys, typically undergo competency tests and fulfill continuing education requirements.

VITA and TCE also have competency standards.

How to vet your tax preparer

Unlike big box preparers, many tax professionals operate mainly by referral and don't accept walk-in traffic, according to Tom O'Saben, an enrolled agent and director of tax content and government relations at the National Association of Tax Professionals.

""Contact your friends and acquaintances who have had positive experiences with their tax professionals and inquire if they are currently accepting new clients," he advised."

While cost is an important consideration, it shouldn't be the sole determinant of your choice.

The IRS maintains a database of qualified tax preparers, including those who take part in the agency's Annual Filing Season Program, which involves annual refresher tests and ongoing education.

You can verify CPA and attorney licenses through state boards, while the IRS oversees enrolled agents' licenses, which can be checked by emailing the agency.