Most accountants are honest and competent. A few aren’t, and some are simply not a good match. These are the warning signs worth taking seriously, starting with the most serious.
Serious red flags
1. They won’t sign the return they prepared
In the US, paid preparers must sign returns and include their PTIN. The IRS calls preparers who don’t “ghost preparers” and warns taxpayers to avoid them. You’re responsible for what’s on your return, even if someone else prepared it.
2. They charge a percentage of your refund
This gives them an incentive to inflate deductions or credits. Fees should be based on the work, not the outcome.
3. They want your refund paid into their account
Your refund should go directly to you. Diverting it is a well-known fraud warning sign.
4. They promise a big refund before seeing your paperwork
No honest professional can know your result in advance.
5. They suggest deductions you know aren’t true
Inflated expenses, invented dependants or personal costs claimed as business costs can lead to penalties, interest and worse. Walk away.
Competence and service red flags
6. Missed deadlines
One genuine mix-up can happen. A pattern of late filings, extensions you didn’t agree to, or penalties caused by them is a strong reason to move.
7. Slow or no communication
Weeks without a reply to a straightforward question, especially near deadlines, is a problem.
8. You never hear any advice
If they only ever process what you send, you’re paying for data entry, not expertise.
9. No engagement letter or unclear fees
You should know what you’re paying for before the work begins.
10. No verifiable credential
If they claim to be a CPA, enrolled agent or chartered accountant, you should be able to confirm it with the licensing body. Our guide to credentials explains where to check.
What to do if you spot these signs
- Get copies of your returns and records now. Don’t wait until relations get worse.
- Get a second opinion on recent returns from another qualified professional.
- Switch. Our guide to switching accountants explains how to do it smoothly.
- Report serious misconduct. In the US, report preparer misconduct to the IRS using Form 14157, and licensed CPAs to their state board. In the UK, complain to the accountant’s professional body, such as ICAEW or ACCA.
- Correct errors. If a return was wrong, an amended return filed promptly usually limits penalties.
Find someone you can trust
On My Accounting Hub, every listing shows the professional’s regulatory body so you can verify credentials before you get in touch.
This guide is general information, not tax, legal or financial advice. Rules and thresholds change and depend on where you live - speak to a qualified professional about your own situation.