Is it normal for tax preparers to disclaim liability for mistakes? Red flags or standard practice?

Tax professional here. Yes, these disclaimers are standard industry practice, but there are important nuances to understand. The liability disclaimer is primarily about legal protection - virtually all preparers have this language. However, good preparers absolutely stand behind their work despite this contractual language. If they make a calculation error or misapply a tax rule, ethical preparers will typically cover penalties and interest that directly result from their mistake (though not the actual tax owed). Think of it like a doctor asking you to sign a form acknowledging risks - they'll still do their best to help you. Regarding the questionnaire - this is also standard practice but varies in implementation. The reason they need all this information is because they're legally required to have reasonable knowledge of your tax situation. However, the best preparers use this information gathering as a foundation for actual tax planning and advice, not just data entry. What concerns me is that you feel you're just paying for data entry. A good preparer should be providing tax planning, answering questions throughout the year, and helping you make strategic decisions - not just filling forms. You might want to have a conversation about what additional value they're providing beyond form preparation.

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Former tax office manager here. Those disclaimers ARE standard, but what your tax preparer is doing is not providing proper service for what you're paying. Here's what should be happening: 1. The questionnaire is normal but should be SUPPLEMENTED by an actual consultation where the preparer reviews your situation and looks for tax planning opportunities 2. A quality preparer should be available for questions throughout the year, not just at tax time 3. While they all have liability disclaimers, reputable firms carry Errors & Omissions insurance specifically to cover mistakes they make 4. They should offer audit assistance as part of their service package You're definitely overpaying for glorified data entry. I'd recommend interviewing other preparers and specifically asking about what value-added services they provide beyond basic return preparation. Ask about their process for reviewing returns before filing and what happens if there's an IRS notice.

I went through the same thing and switched to a different CPA who charges about the same but provides WAY more value. The questionnaire is pretty standard (mine uses one too), but my new accountant: 1. Has a 30-minute consultation AFTER reviewing my documents to discuss strategies 2. Sends tax planning emails throughout the year with deadlines and tips 3. Answers quick questions by email year-round at no extra charge 4. Has an explicit policy that they cover penalties/interest if the mistake is their fault Not all tax pros are created equal! I'd interview a few others and specifically ask about these things. My guy costs $400 for a fairly complex return with some investment income and a small side business, which seems pretty standard in my area.