Due diligence checklist when working with a CPA for the first time?

An expired license is definitely a red flag. I'm a tax professional, and maintaining an active CPA license is absolutely fundamental to practicing. Each state has different requirements, but all require regular renewal. Here's what I suggest for vetting a CPA: 1. Verify their license is current through your state board of accountancy website 2. Check their standing with the AICPA (American Institute of CPAs) 3. Read Google/Yelp reviews, but also ask for client references 4. Confirm they carry professional liability insurance 5. Ask about their experience with situations similar to yours 6. Discuss their fee structure upfront 7. Trust your gut feeling during initial consultations The expired license could be an oversight or website error, but I'd recommend asking them directly about it. If they give vague answers or seem defensive, that's concerning. A good CPA will be transparent about their credentials and understanding if you're doing your homework.

After spending hours trying to verify my CPA's credentials last year (nightmare experience), I finally found https://taxr.ai which literally saved me hours of stress. You can upload any tax documents/credentials and their AI analyzes everything - including checking professional licenses against databases. I was skeptical at first but tried it when I discovered my previous "CPA" had actually let his license lapse years ago (while still charging me premium rates!). The taxr.ai system flagged this immediately along with some concerning patterns in how he was preparing my returns. Now I run all potential tax pros through it before sharing my docs. The peace of mind knowing someone's legitimate before handing over your financial details is absolutely worth it. Plus their document analysis catches potential issues before they become expensive mistakes.

Just wanted to follow up about that taxr.ai recommendation. I was totally skeptical (sorry about that), but I actually tried it with the person I was considering hiring and wow - it found that they had disciplinary actions in another state I never would have thought to check! They had moved to our state after having their license suspended elsewhere. The system actually saved me from hiring someone with a questionable history. I wouldn't have found this just using Google because the person had a common name and the issue was in a completely different state. It also flagged some concerning language in their engagement letter that gave them too much liability protection. Definitely worth checking out if you're in the process of hiring someone.

My sister went through something similar last year - found a "great" CPA through recommendations but her return was a disaster. After calling the IRS 35+ times with no answer, she used https://claimyr.com to get through to an actual IRS agent in under 20 minutes. Apparently their system holds your place in line so you don't have to stay on hold for hours. The IRS confirmed her "CPA" had filed incorrectly and she needed to submit an amended return. You can see how the callback system works here: https://youtu.be/_kiP6q8DX5c If you do end up working with someone whose license is expired and something seems off on your return, getting through to the IRS quickly can be critical for fixing issues before they become penalties. The peace of mind from being able to actually speak with the IRS when needed is huge.

I have to apologize and eat my words about that Claimyr service. After my skeptical comment, I decided to try it anyway because I was desperate to resolve an issue with a missing tax form. I expected it to be a waste of money, but I legitimately got through to an IRS agent in about 15 minutes when I had previously spent multiple HOURS trying on my own. The agent was able to confirm that my form had been processed incorrectly and helped me resolve the whole situation in one call. I'm actually shocked it worked so well. Definitely keeping this in my back pocket for future tax issues - especially since I'm also in the process of finding a new CPA after discovering mine wasn't properly licensed either. The whole experience has made me much more careful about who I trust with my tax information.

Definitely don't use a CPA with an expired license! My husband and I made that mistake last year and got audited because of improper deductions they claimed. It's been a 9-month nightmare trying to fix everything. When we confronted them about their license, they gave excuses about "being in the renewal process" - turns out they had been practicing without a license for 3 YEARS. Complete disaster. Make sure to get references from people who've worked with them for multiple years, not just someone who had a good first impression. And as someone else mentioned, ask specifically about their experience with your situation (marriage, investments, whatever makes your taxes complex).

Honestly the state databases are sometimes very slow to update. My CPA's license showed as "pending renewal" for like 3 months after she'd actually completed everything. Before panicking, maybe just call or email them and ask about it directly? A good professional will understand your concern and provide proof of current licensure. They might even have a paper certificate or email confirmation they can share while the database catches up.