Let's start with the basics: What a Tax Preparer isn’t, what it is, and what it should be. There are a lot of incorrect assumptions about what taxpayers should expect, and it’s time to set the record straight. This is for everyone: taxpayers who use a preparer, taxpayers who don’t, tax preparers, and Grandma Jo (whose real name is Jolene).

What a Tax Preparer Isn’t

An auditor or bookkeeper.
When you hire a tax preparer, you’re not hiring someone to audit your books or verify every number you provide. Unless something looks incorrect, inconsistent, or incomplete, a preparer can generally rely on client-provided information in good faith. In plain terms: if you give your preparer a number, they usually take it at face value unless they have a reason not to.

Some practitioners blur this line, but the truth is simple: the taxpayer is ultimately responsible for what’s on the return when those numbers come from the taxpayer. A preparer signing the return is not a magic shield for bad information.

A tax advisor.
A tax preparer is not automatically a tax planner. Preparation and planning are different services. Can a preparer give advice? Absolutely, if they choose to and you engage them for it. But “you prepared my return” does not automatically mean “you owe me strategy, optimization, and proactive planning.”

Expecting free planning because someone is already preparing your return is like expecting a mechanic to replace your brakes for free just because your car is already on the lift. Possible? Sure. Included? Not necessarily.

What a Tax Preparer Is

At the most basic level, a tax preparer is someone who prepares tax returns. And here’s the surprising part: almost anyone can be one. If someone has a PTIN (Preparer Tax Identification Number), they can prepare returns for compensation, even without formal credentials.

But there are rules. Many paid preparers are subject to Circular 230 (enforced by the IRS Office of Professional Responsibility), which governs conduct in tax matters. The big idea: a preparer must act responsibly.

That means:

• If a preparer spots an error or omission, they should tell the client and explain the consequences of not correcting it.

• A preparer shouldn’t sign a return that they know (or should know) is built on positions with no reasonable basis or that intentionally understate tax.

• If penalties are likely, the preparer should inform the client and explain how to avoid them when possible.

What a Tax Preparer Should Be

A tax preparer should be competent and exercise due diligence. They should know how to prepare the return they’re working on, and when they don’t, they should consult the right resources or experts.

They shouldn’t blindly accept everything, but they also can’t become a full-blown auditor without turning tax prep into something entirely different (and much more expensive). The line will always be a little blurry: good preparers ask smart questions, sanity-check what matters, and help produce an accurate return. But in the end, taxpayers still have a core responsibility: provide honest, complete information.