The right accountant can help you maximize savings, stay compliant, and plan for the future—but the wrong one could cost you more than you realize. While most professionals operate ethically, poor advice, mismanagement, or simple inexperience can lead to unnecessary tax bills, missed deductions, or financial headaches.
Before trusting someone with your finances, look for these red flags to ensure you work with a knowledgeable and reliable professional.
1. They Ask You to Sign Blank Tax Returns
Never sign a blank tax return—this hands control to a preparer who could manipulate your filing, inflate deductions, or divert your refund to their own account. A trustworthy accountant will always provide a fully completed return for review before submission.
Tax fraud can lead to audits, penalties, or even legal trouble, but a few simple steps can protect your finances. Double-check all details, verify your refund destination, and ensure your preparer signs the return with their Preparer Tax Identification Number (PTIN). Taking these precautions keeps your money where it belongs and safeguards you from costly mistakes.
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2. They Push You Into Risky Tax Deductions
Run if a tax preparer pressures you to claim questionable deductions or fabricate expenses. You—not them—will be liable if the IRS audits your return.
Honest tax professionals play by the rules. Illegal deductions can lead to hefty fines, penalties, and legal action. If you’re already struggling with debt, the last thing you need is an unexpected IRS bill that adds to your financial burden. Always work with a tax professional who ensures your filing is accurate and compliant with the law to avoid costly mistakes.
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3. They Promise Huge Refunds Without Reviewing Your Finances
If your accountant guarantees an oversized tax refund before even looking at your documents, it’s a major red flag. Legitimate professionals assess your financial situation first, ensuring compliance with tax laws.
False promises of big refunds can lead to audits, penalties, and even legal trouble. Always verify your accountant’s credentials and ask for a clear explanation of any deductions or credits they claim on your behalf.
Always verify credentials. Look for CPAs or EAs with verifiable licenses and solid client reviews.
4. They Won’t Provide References or Reviews
Reputable accountants should have a list of satisfied clients willing to vouch for their work. If yours refuses to share references or has no online presence, that’s a red flag.
Transparency is key to trust. A lack of reviews or testimonials could indicate inexperience or a history of unhappy clients. Always research their background and ask for proof of their expertise before hiring.
Check online reviews and ask for referrals from business owners or financial professionals you trust.
5. They Insist on Depositing Your Refund Into Their Account First
Any accountant who wants your tax refund deposited into their account before forwarding it to you is stealing from you. Refunds should always go directly to you—never to a third party.
Scammers may take a cut of your refund or disappear with the entire amount, leaving you with nothing. To stay safe, always double-check the direct deposit details on your tax return before submission.
Set up direct deposit with the IRS to ensure your refund reaches your bank safely and quickly.
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6. Their Fees Are Unclear or Based on Your Refund Amount
Be cautious of accountants who charge a percentage of your refund instead of a flat or hourly rate. This incentivizes fraud and could lead to inflated claims that get you in trouble later.
Instead of risking your finances with a shady accountant, consider working with a trusted financial advisor who can help you plan for taxes and long-term savings. If you have significant assets, consulting a fiduciary advisor can ensure your money is managed wisely and in your best interest. A fiduciary advisor is legally obligated to act in your best interests, offering peace of mind that your financial decisions are being made with your future in mind.
7. They Are Impossible to Reach During Tax Season
A reliable accountant should be accessible, especially when deadlines are looming. If they vanish when you need them most or fail to respond to urgent questions, it’s time to find someone more dependable.
Poor communication can lead to missed tax deadlines, penalties, and unnecessary stress, risking your financial health. Whether managing personal finances or running a business, having access to timely, professional advice is essential.
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How to Find a Trustworthy Accountant
Now that you know the warning signs, here’s how to ensure you hire the right professional:
- Verify credentials: Look for CPAs (Certified Public Accountants) or EAs (Enrolled Agents) with legitimate licenses.
- Check online reviews: Search their name and firm to see what past clients have to say.
- Ask for referrals: Friends, family, and business owners can recommend trusted professionals.
- Request a consultation: Meet with a potential accountant before hiring them to discuss their approach and pricing.
- Ensure transparency: A good accountant will explain their fees upfront and provide a clear contract.
By staying vigilant and doing your homework, you can avoid fraudulent accountants and safeguard your financial future.
