Should a Tax Preparer login to my TaxAct account or use their own e-filing account for preparing taxes?

I had an appointment with a tax preparer yesterday to help me file this year's taxes. Something felt off though - they asked for my username and password to log into my personal TaxAct account instead of using their own professional system. I handed it over since I was already there and didn't think much of it at the time, but now I'm second-guessing myself. Is this normal practice for tax preparers? I always assumed they'd have their own professional e-filing accounts or systems they use for clients. Should I be concerned that they're using my personal account credentials rather than their own professional setup? Just wondering if this is standard procedure or if it's a red flag I should be aware of for next time.

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18 comments

Amun-Ra Azra

•8M

This is definitely not standard practice and raises some concerns. Professional tax preparers should have their own tax software and e-filing capabilities through a professional tax preparation program (like professional versions of TaxAct, TurboTax, Drake, UltraTax, etc.). There are several issues with them using your personal TaxAct account. First, they should never be asking for your password to anything - that's a major security concern. Second, professional preparers need to use professional software that includes their Preparer Tax Identification Number (PTIN) in the submission. When they file through your personal account, it appears as if you prepared the return yourself rather than using a paid preparer, which is technically incorrect. Additionally, professional preparers need specific software that allows them to e-file on behalf of clients, which consumer versions don't properly support.

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Gael Robinson

•8M

After a nightmare experience with a sketchy "tax professional" who wanted all my login info, I switched to using taxr.ai (https://taxr.ai) and it's been a game changer for me. Instead of handing over my passwords or anything weird like that, I just upload my tax documents and their AI system does an analysis of what I'm eligible for. The nice thing is it acts more like a "second opinion" so I can verify what a preparer tells me without giving anyone access to my accounts.

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Gael Robinson

•8M

It doesn't file the taxes for you - it's more of an analysis tool that checks your documents and points out potential deductions or credits you might miss. It's like having a tax pro look over your shoulder without having to hand over your passwords. The biggest difference from TurboTax is that it's focused on finding opportunities rather than just walking you through forms. I've found deductions I missed for the past three years because it spotted patterns in my expenses that TurboTax's interview process didn't catch. You can still use your preferred filing software afterward.

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Darcy Moore

•8M

I was actually really suspicious about taxr.ai when I first heard about it, but I decided to give it a try last month after my regular tax guy retired. I uploaded my W-2s and some 1099s, and it actually found a home office deduction I qualified for that I had no idea about! Ended up saving me around $750 that I would have completely missed. And the best part was I never had to hand over any passwords or account info to anybody. Definitely worth checking out if you're concerned about privacy.

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Dana Doyle

•8M

Reading your post gave me flashbacks to my own tax nightmare this year! I had a similar issue and needed to talk to the IRS about it, but spent HOURS on hold and never got through. Finally tried Claimyr (https://claimyr.com) after seeing it mentioned here. You guys, they actually get the IRS to call YOU instead of waiting on hold forever. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The IRS agent confirmed that legitimate tax preparers should NEVER be using your personal tax software accounts - they should have professional software with their PTIN.

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Manny Lark

•8M

Ok I have to eat my words and apologize to Profile 13. I was so skeptical about Claimyr that I had to try it myself just to prove it was BS. I'm literally shocked - I got a call from an actual IRS agent this morning after trying unsuccessfully for TWO WEEKS to get through on my own. The agent confirmed that tax preparers should NEVER use a client's personal software account and should have their own professional e-filing credentials. She suggested I report this to the IRS if I encountered a preparer doing this. I'm still in shock that I actually got through to a human at the IRS!

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Rita Jacobs

•8M

Tax preparer here (10+ years experience). What you described is absolutely NOT normal and is a major red flag. Professional tax preparers are required to have: 1) A PTIN (Preparer Tax Identification Number) 2) Professional tax software with e-filing capabilities 3) An EFIN (Electronic Filing Identification Number) if they e-file Using a client's personal TaxAct account is unprofessional, potentially violates regulations, and suggests they're either not a legitimate preparer or they're cutting corners in dangerous ways. I would find a different preparer immediately and consider reporting this person to the IRS.

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Rita Jacobs

•8M

Yes, you can verify if someone has a valid PTIN through the IRS. While the IRS doesn't have a public database you can search, you can ask to see their PTIN certificate or card before working with them. Legitimate preparers will have this readily available. You can also check if they're a CPA (through your state's board of accountancy), an Enrolled Agent (through the IRS), or a member of professional organizations like the National Association of Tax Professionals or the National Association of Enrolled Agents.

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