How can I verify a tax preparer's PTIN to check if the business is legitimate?

Thanks for the link! I checked the directory but couldn't find them. Does that automatically mean they're not legit? The person I spoke with said they're an "AFSP participant" but not a CPA or EA. What does AFSP mean?

Not being in the directory doesn't automatically mean they're not legitimate. AFSP stands for Annual Filing Season Program, which means they've voluntarily taken continuing education courses and agreed to follow certain professional requirements. It's a good sign! Since they claim to be an AFSP participant, they should be in the directory. Double-check the spelling of their name or business. Also, ask them directly for their PTIN number and credentials. Any legitimate preparer should be happy to provide this information.

Does this tool actually show complaint history? The IRS directory doesn't show that kind of info as far as I know. Does it cost anything to use? I'm looking at a preparer right now too and would love to dig deeper than just the PTIN.

I'm skeptical about this. How would a third-party website have access to IRS complaint records? Those aren't public information as far as I know. Are you sure this isn't just showing general business reviews from like Yelp or something?

The tool aggregates data from multiple sources including the IRS directory, state licensing boards, and Better Business Bureau reports. It's basically a one-stop verification system that saves you from checking multiple sites yourself. It's completely free to use for basic verification. They do have premium features, but the PTIN verification and complaint history pulled from publicly available sources doesn't cost anything. It's not showing internal IRS records, but rather complaints filed with state boards, consumer protection agencies, and professional organizations.

Wait, so this service just holds your place in line with the IRS? How does that even work? I've spent literally 4+ hours on hold before giving up. Is there a catch like they charge a ton of money or something?

This sounds like BS honestly. The IRS won't give out information about specific preparers over the phone to random callers. They'll just direct you to the directory. I've tried. How would a third-party service change that policy?

The service basically uses technology to navigate the IRS phone system and wait on hold for you. When an agent picks up, it calls you and connects you. No magic involved - they're just taking over the painful hold process. The IRS agent won't give you complete background info on a preparer, you're right about that. But they can confirm if a PTIN is currently valid, which is what I needed to know. They'll verify basic license status information that's considered public record. I just asked "I want to verify if PTIN X12345 is currently valid" and they confirmed it was.

That's a really good point about them being available year-round. This place actually seems to only be open January through April, which now that you mention it is kind of suspicious. Do most legitimate tax businesses stay open all year?

Most established tax professionals operate year-round, though they might have reduced hours in the off-season. Many legitimate tax issues come up throughout the year - audits, extensions, quarterly payments for self-employed people, etc. Some seasonal operations can be fine, especially if they're affiliated with a permanent accounting firm or if the preparer has another related business the rest of the year. But if they completely disappear after April, that's definitely something to consider. Always get their contact information for the off-season and test it with a quick call before you leave with your completed return.

Is there any public database where we can look up EFINs? Or do we just have to take their word for it when they give us a number?

Unfortunately, there isn't a public database to verify EFINs like there is for PTINs. The IRS keeps that information internal for security reasons. However, you can still verify it indirectly - legitimate preparers will often display their EFIN on business materials or be able to provide documentation showing their electronic filing authorization from the IRS. If you're really unsure, you could ask to see their IRS e-file Provider Letter or other official documentation that shows their EFIN status. Most legitimate preparers keep copies of these authorizations and won't hesitate to show them to concerned clients.

This is really comprehensive advice! I hadn't thought about asking for professional liability insurance - that's brilliant. Quick question though - if they do have E&O insurance, is there a way to verify that it's actually active? Can you call the insurance company directly, or would that be overstepping? Also, you mentioned not signing blank forms - what about partially completed forms where they fill in some info later? The place I'm looking at said they'd need to complete some calculations after I leave, which seemed reasonable, but now I'm wondering if I should insist on reviewing everything before signing.

@2d3087dd5b7a You can definitely verify active insurance coverage! Most insurance companies will confirm if a policy is current when you call and provide the policy number or business name. You're not overstepping at all - it's standard practice for clients to verify professional coverage, especially for financial services. Regarding partially completed forms - this is actually pretty normal for tax preparation. Many calculations need to be done after gathering all your information, and some forms can't be fully completed until the preparer runs everything through their software. However, you should ALWAYS review the completed return before signing it. Ask them to schedule a review appointment where you can go through every line of your return before you sign Form 8879 (the e-file authorization). Any legitimate preparer will encourage this - they want you to understand your return and catch any potential errors before filing. The key red flag would be if they ask you to sign the actual tax forms (like 1040) or Form 8879 while they're still blank or incomplete. Never do that under any circumstances.

This is such valuable advice about checking state licensing! I had no idea some states had their own requirements beyond the PTIN. I'm in Texas - does anyone know if Texas has additional licensing requirements for tax preparers? Also, you're absolutely right about trusting your gut. The preparer I was considering seemed a bit evasive when I first asked about credentials, but after reading all these responses, I think I should probably look elsewhere. There are clearly plenty of legitimate preparers out there who would be happy to answer all these verification questions upfront. Thanks everyone for all the detailed advice - this thread has been incredibly helpful! I feel much more confident now about what questions to ask and red flags to watch for.