Choosing a Tax Accountant

How to Choose a Tax Accountant

As tax season approaches, you face an important decision: should you prepare your own return or hire a tax professional?

For many taxpayers, doing your own taxes is a perfectly reasonable option. Modern tax software is convenient, affordable, and generally accurate. However, the real value of either tax software or a professional accountant goes beyond simply filing a return; it lies in guidance, strategy, and support if issues arise with the IRS.

Doing Your Own Taxes

Tax software has become increasingly sophisticated. For example, TurboTax® holds roughly 35% of the market and offers a user-friendly platform. It provides helpful articles on reducing taxes, access to tax experts, and optional audit defense coverage.

The educational content published by tax software companies is high quality and easy to digest. However, you are still responsible for identifying which strategies apply to your situation and implementing them correctly. The software does not provide continuous, proactive tax planning throughout the year.

TurboTax® also offers add-on services that allow you to speak with credentialed professionals, many of whom are Enrolled Agents ( EAs)  or Certified Public Accountants  (CPAs). These experts are generally knowledgeable and have access to professional tax research tools. However, in most review engagements, they are cautioned not to provide proactive tax strategy advice. The platform’s focus is efficiency and volume rather than long-term client outcomes.

Understanding Audit Defense

TurboTax® advertises audit protection, but it is important to understand what that means. Basic products may include limited assistance, but full audit defense typically requires an additional purchase (around $69.95 per year).

The IRS generally has three years to audit a return. To maintain audit defense coverage during that period, you need to renew the service annually. That means the true cost of coverage over three years will exceed $200.00.

It’s also important to understand the audit timeline. The IRS’ review process can take years before they get to your return, and if you have not continuously paid for audit defense you are out of luck.

Hiring a Tax Accountant 

Hiring a tax accountant can be an excellent investment if you choose the right one and clearly define your expectations from the start.

A great accountant should serve as your advisor throughout the year, not just during tax season. Tax preparation is transactional. Tax advising is strategic. You want someone who provides continuous guidance and remains engaged beyond filing your return.

What to Expect From a Great Accountant

If it’s your first year working together, your accountant should, at a minimum, identify opportunities to reduce your current-year tax burden. Modern tax software allows professionals to model scenarios and suggest planning strategies. Running these projections costs the accountant nothing but deliver real value to the client.

Your accountant should also schedule a follow-up meeting after tax season. This is where real, value add occurs. Reviewing your return together allows the accountant to structure income to shelter it from tax liabilities, and develop strategies to reduce next year’s liability. This proactive approach is where a good accountant truly earns their fee.

Ongoing Support and Accountability

A tax accountant should stand behind their work. Filling your return is not the end of the relationship; it is the beginning of accountability.

If you receive an IRS notice or audit inquiry, your accountant should:

• Respond promptly and explain the issue clearly

• Assist in preparing and submitting any required responses

• Represent you before the IRS when necessary

You should never feel unsupported when an issue arises. True professionals defend the work they prepare.

How to Choose the Right Accountant

Start by verifying credentials. At a minimum, look for an Enrolled Agent (EA) or Certified Public Accountant (CPA). These designations demonstrate formal training and professional standards.

Next, understand pricing. Quality tax work is rarely inexpensive. Be cautious of low fees (for example, under $350 for a standard return), as this signals a high-volume practice where speed is prioritized over strategy and service.

Finally, check reputation. Ask for referrals and read online reviews. Consistent complaints about poor communication or lack of support are strong warning signs.

Decision

In the end, the decision comes down to what you value.

If you prepare your own return, you are primarily paying for a software to help you complete a return. That may be perfectly sufficient if your situation is straightforward and you are comfortable managing the details yourself.

When you hire the right accountant, you are investing in more than a finished return. You are investing in strategy, foresight, and representation. A preparer(such as yourself) files your taxes. An advisor helps you plan, reduce risk, and build a smarter financial future.

Choose based not just on cost — but on the level of guidance and support you want behind you.