"Tax services" covers everyone from a national storefront chain to a CPA firm that also does your payroll. They aren't interchangeable, and in Montgomery, as everywhere else, the difference only shows up when something goes wrong. Here's how to pick the right level of help, and how to check anyone in a minute. To compare licensed CPAs and firms, see CPAs in Montgomery.
Three kinds of tax help, and what each can do
- Paid preparer (PTIN only). Anyone with an IRS Preparer Tax Identification Number can charge to prepare a return (IRS (opens in new tab)). Preparers in the IRS's voluntary Annual Filing Season Program (opens in new tab) have limited representation rights: only for returns they prepared and signed, and not for appeals or collections.
- Enrolled agent (EA). Licensed by the IRS itself, with unlimited rights to represent you before the IRS (IRS (opens in new tab)).
- CPA. Licensed by the Alabama State Board of Public Accountancy, also with unlimited IRS representation rights, and the only one of the three who can also do attest work, such as audits, through a licensed firm.
The full comparison is in CPA vs. Tax Preparer vs. Enrolled Agent.
Which one fits your return
- A simple W-2 return: a reputable preparer may be all you need. If you qualify, the IRS's free VITA and TCE programs (opens in new tab) prepare returns at no cost (use the IRS site locator (opens in new tab)).
- Self-employment, rental property, or a small business: an EA or CPA. These returns carry more judgment calls and more Alabama-specific items, such as the business privilege tax.
- Military households: if your household is connected to Maxwell Air Force Base, start with the IRS's military tax resources (opens in new tab) and ask any preparer whether they regularly handle military returns.
- An IRS or Alabama Department of Revenue letter, or unfiled years: an EA or CPA who will represent you. See You Got a Letter from the IRS and How to File Back Taxes in Alabama.
How to check anyone in a minute
- CPA: search the name on the Alabama State Board of Public Accountancy licensee search (opens in new tab), or use our license lookup.
- EA, CPA, attorney, or Annual Filing Season Program preparer: the IRS's Directory of Federal Tax Return Preparers with Credentials (opens in new tab) lists them by ZIP code.
- Anyone: ask for their PTIN, and make sure they'll sign the return. An unsigned return is the biggest warning sign (IRS (opens in new tab)).
Red flags
- The fee is a percentage of your refund.
- They won't sign the return or give you a PTIN.
- They want the refund deposited into their account.
- They promise a bigger refund before seeing your documents.
- They disappear after April. Ask whether they'll still answer the phone in October.
More in Tax Preparer Scams and Ghost Preparers.
Book before the rush
Good preparers fill their calendars early in filing season. If your situation changed this year (a new business, a rental, a move, or a retirement), book a first meeting in December or January, while there's still time to fix things before the return is due. Gather last year's return, your income forms and any IRS or Alabama Department of Revenue letters first.
This guide is general information, not tax or legal advice, and it doesn't rank or recommend any tax service in Montgomery. Check credentials yourself using the free lookups above.
Frequently asked questions
What is the best tax service in Montgomery, AL?
There is no single best one; the right choice depends on your return. A reputable preparer may be enough for a simple W-2 return, while self-employment, rental property, a small business or an IRS letter usually call for an enrolled agent or CPA. Check any provider's credentials free before you hand over documents.
How do I check a Montgomery tax preparer's credentials?
For a CPA, search the Alabama State Board of Public Accountancy's licensee search. For enrolled agents, CPAs, attorneys and Annual Filing Season Program participants, use the IRS Directory of Federal Tax Return Preparers with Credentials. Every paid preparer must have a PTIN and sign your return.
Is a CPA or an enrolled agent better for taxes?
Both have unlimited rights to represent you before the IRS. An enrolled agent is licensed by the IRS and focuses on tax; a CPA is licensed by the state and can also do accounting and audit work. For most tax returns, either is a solid choice; ask about experience with returns like yours.
Is there free tax preparation in Montgomery?
If you qualify, the IRS's VITA and TCE programs prepare returns for free. Use the IRS site locator to find a location and check what to bring.
When should I book a tax preparer in Montgomery?
Earlier than you think. Calendars fill early in filing season, so if your situation changed this year, book a first meeting in December or January.