How to Choose a Tax Preparer in Los Angeles: A Complete Guide
Choosing a tax preparer in Los Angeles shouldn't feel like a gamble. You're trusting someone with your financial information, your IRS compliance, and potentially thousands of dollars in deductions. Pick the wrong person, and you could face penalties, missed savings, or worse—an audit.
The good news? Finding a great tax preparer isn't complicated if you know what to look for.
Whether you're a small business owner, self-employed freelancer, or W-2 employee with a complicated return, this guide will walk you through exactly how to choose a tax preparer in LA who's competent, trustworthy, and worth every penny.
Why Choosing the Right Tax Preparer Matters
Let's start with the stakes.
A good tax preparer:
Finds deductions you didn't know existed (saving you thousands)
Files accurately so you never get IRS notices
Stays current on tax law changes (California and federal)
Plans proactively to reduce next year's taxes
Represents you if problems arise
A bad tax preparer:
Misses deductions and costs you money
Makes mistakes that trigger audits or penalties
Disappears after April 15th when you need help
Takes aggressive positions that put you at risk
Charges hidden fees or upsells unnecessary services
One client came to us after their previous preparer missed $8,000 in legitimate business deductions. Another had to pay $3,500 in IRS penalties because their preparer filed late and never told them.
The right preparer pays for themselves. The wrong one costs you—big time.
Step 1: Verify Their Credentials
Not all tax preparers are created equal. In California, anyone can call themselves a "tax preparer," but only certain credentials actually mean something.
Look for These Credentials:
CTEC (California Tax Education Council)
Required for anyone preparing taxes for compensation in California
Must pass a qualifying exam and complete continuing education
Register with CTEC and maintain a valid Preparer Tax Identification Number (PTIN)
This is the minimum credential to look for
Enrolled Agent (EA)
Federally licensed by the IRS
Can represent clients before the IRS in all 50 states
Must pass a comprehensive 3-part IRS exam covering individual and business taxes
Higher level of expertise than CTEC alone
CPA (Certified Public Accountant)
Licensed by the state to practice accounting
Can provide broader financial services beyond tax prep
Must pass rigorous exams and meet education requirements
Often more expensive but can handle complex situations
Attorney (Tax Attorney)
Licensed to practice law
Specializes in complex tax issues, audits, tax litigation
Usually only needed for serious IRS problems or complicated estate planning
How to Verify Credentials:
Ask for their PTIN - All paid preparers must have a Preparer Tax Identification Number from the IRS
Check CTEC registration - Search the CTEC database at ctec.org
Verify EA status - Check the IRS directory of federal tax return preparers
Confirm CPA license - Check with the California Board of Accountancy
Red flag: Anyone who won't provide their credentials or PTIN is not legitimate.
Step 2: Check Their Experience and Specialization
Credentials matter, but so does experience. A newly licensed CTEC preparer and a 20-year EA have very different skill sets.
Ask These Questions:
How long have you been preparing taxes?
Look for at least 3-5 years of experience
More experience = more situations they've handled
What types of clients do you specialize in?
Small business owners? Freelancers? W-2 employees? Rental property owners?
You want someone who regularly handles situations like yours
How many returns do you prepare per year?
Someone doing 20 returns vs. 500 returns has vastly different expertise
High volume = they've seen more scenarios
Do you handle California state taxes as well as federal?
California tax law is complex and changes frequently
Make sure they're current on state-specific rules
Have you dealt with [your specific situation] before?
Self-employment income? Rental properties? Stock options? Multi-state filing?
You want someone who's handled your exact tax situation
Example:
If you're a freelance photographer with equipment depreciation, home office deductions, and quarterly estimated taxes, you want a preparer who regularly works with self-employed creatives—not someone who only does simple W-2 returns.
Step 3: Understand Their Availability and Communication
Tax questions don't only come up in March and April. You need a preparer who's available year-round.
Red Flags to Watch For:
❌ They only work during tax season
What happens if you get an IRS notice in July?
Who handles mid-year tax planning questions?
❌ They're impossible to reach
Calls go to voicemail and never get returned
Emails take days or weeks to answer
No clear way to contact them outside tax season
❌ They rush you through the process
Don't ask detailed questions about your situation
Just want to "get it done" without understanding your finances
Make you feel like you're bothering them with questions
What to Look For:
✅ Year-round availability
They're responsive even outside tax season
Have a clear process for handling questions and IRS notices
✅ Multiple ways to contact them
Phone, email, online portal, in-person appointments
You can reach them however works best for you
✅ They explain things clearly
No confusing jargon
Take time to answer your questions
Make sure you understand what's being filed and why
✅ Proactive communication
Remind you of deadlines (estimated tax payments, filing dates)
Update you on relevant tax law changes
Check in throughout the year, not just in April
At The Tax Shack, we're available year-round and respond to client questions within 24-48 hours—even in July.
Step 4: Ask About Their Process
A good tax preparer has a clear, organized process. A bad one wings it.
Questions to Ask:
What information do you need from me?
Should have a clear checklist or organizer
Asks for W-2s, 1099s, receipts, previous returns, etc.
How do you handle my documents?
Secure portal? In-person dropoff? Email?
How do they protect your sensitive financial information?
Do you review my return with me before filing?
You should see and approve everything before it's submitted
They should explain any deductions or credits claimed
What's your e-filing process?
Do they e-file or paper file?
E-filing is faster and more reliable
What happens if the IRS has questions or audits me?
Do they represent you or are you on your own?
Is representation included in the fee or extra?
Do you provide a copy of my return?
You should always get a complete copy for your records
Some preparers charge extra for copies (red flag)
How do you stay current on tax law changes?
Continuing education requirements
Professional memberships
Subscribe to IRS updates
Step 5: Understand the Fees (and Watch for Red Flags)
Pricing for tax preparation varies based on complexity, but transparency is key.
Prices vary based on:
Complexity of your return
Number of income sources
Whether you have organized records or a shoebox of receipts
Time required
Geographic location (LA tends to be higher than rural areas)
Pricing Red Flags:
🚩 Fees based on refund size
"I charge 10% of your refund"
This incentivizes inflating refunds through aggressive or questionable deductions
Ethical preparers charge flat fees or hourly rates
🚩 Prices that seem too good to be true
"$50 for any tax return!" = cut-rate service or bait-and-switch
Quality tax prep takes time and expertise
You get what you pay for
🚩 Hidden fees
Base price quoted, then surprise charges pile up
"Oh, that'll be an extra $100 for Schedule C"
Get everything in writing upfront
🚩 No clear quote
Can't or won't give you an estimate
"We'll see how long it takes"
Legitimate preparers can estimate based on your situation
What to Look For:
✅ Clear, upfront pricing
Quote based on your specific situation
All fees explained before work begins
✅ Reasonable rates for your market
Not the cheapest, not the most expensive
Reflects the complexity of your return
✅ No refund-based fees
Flat fee or hourly rate only
✅ Written engagement agreement
Outlines what's included, what costs extra
Clear scope of work
At The Tax Shack, we give you a clear quote upfront after reviewing your situation. No hidden fees, no surprises.
Step 6: Check Reviews and References
In Los Angeles, you have thousands of tax preparers to choose from. Let other people's experiences guide you.
Where to Check Reviews:
Google Reviews
Look for 4+ stars with at least 20-30 reviews
Read recent reviews (not just old ones)
Pay attention to how they respond to negative reviews
Yelp
LA clients use Yelp heavily for service providers
Filter for recent reviews
Look for consistent themes (good or bad)
Better Business Bureau (BBB)
Check for complaints or unresolved issues
A+ rating is ideal
Personal Referrals
Ask friends, family, or business contacts
"Who does your taxes and do you trust them?"
Personal referrals are gold
What to Look For in Reviews:
✅ Responsiveness - "They answered all my questions"
✅ Knowledge - "Found deductions I didn't know about"
✅ Accuracy - "Never had an issue with the IRS"
✅ Year-round support - "They helped me in August when I got a notice"
✅ Clear communication - "Explained everything in plain English"
Red Flags in Reviews:
🚩 Complaints about IRS issues or penalties
🚩 Hidden fees or surprise charges
🚩 Can't reach them after filing
🚩 Aggressive deductions that caused problems
🚩 Unprofessional behavior or attitude
Step 7: Trust Your Gut
You're going to share a lot of personal financial information with your tax preparer. If something feels off, listen to that instinct.
Trust Your Gut If:
❌ They pressure you to sign up immediately
❌ They promise huge refunds before seeing your documents
❌ They suggest deductions that seem questionable
❌ They won't answer your questions clearly
❌ They make you feel stupid for asking
❌ Something just doesn't feel right
Green Flags:
✅ They're patient and willing to explain things
✅ They ask detailed questions about your situation
✅ They're honest about what you can and can't deduct
✅ They set realistic expectations
✅ You feel comfortable and understood
If you don't trust them with your finances, keep looking.
Common Mistakes People Make When Choosing a Tax Preparer
1. Choosing Based Only on Price
The cheapest option usually isn't the best. A preparer who charges $100 and misses $2,000 in deductions just cost you $1,900.
Better approach: Find someone competent at a fair price who will save you more than they cost.
2. Not Verifying Credentials
Just because someone has an office and a shingle doesn't mean they're qualified. Always verify CTEC registration, PTIN, or other credentials.
3. Assuming All Preparers Are the Same
A CTEC preparer, an EA, and a CPA have different expertise levels and capabilities. Match your needs to their qualifications.
4. Picking Someone Who's Never Available
If they disappear for 8 months after tax season, you're on your own when an IRS notice arrives in July.
5. Not Reading Reviews
Other people's experiences tell you a lot. If 20 reviews mention "impossible to reach," believe them.
6. Going with Someone Who Makes Big Promises
"I'll get you a $10,000 refund guaranteed!" is a lie. No one can promise refund amounts before reviewing your actual tax situation.
7. Sticking with a Bad Preparer Out of Loyalty
If your current preparer is making mistakes, hard to reach, or not saving you money, it's time to switch. Loyalty doesn't fix incompetence.
Questions to Ask During Your Consultation
Most good preparers offer a free consultation. Here's what to ask:
About Their Background:
What are your credentials (CTEC, EA, CPA)?
How long have you been preparing taxes?
How many returns do you prepare per year?
Do you specialize in any particular type of client?
About Their Process:
What information will you need from me?
How do you handle document security?
Do you e-file or paper file?
Will I review the return before it's filed?
What happens if I get audited?
About Fees:
How do you charge (flat fee, hourly, percentage of refund)?
What's included in that fee?
Are there any additional costs I should know about?
When is payment due?
About Availability:
Are you available year-round or just during tax season?
How quickly do you typically respond to questions?
What's the best way to reach you?
About Your Specific Situation:
Have you worked with [your situation] before?
What deductions or strategies would you recommend?
Are there any red flags or concerns with my tax situation?
A good preparer will answer all of these confidently and thoroughly. A bad one will dodge, rush, or give vague answers.
Los Angeles-Specific Considerations
California State Taxes Are Complicated
California has some of the most complex state tax laws in the country. Your preparer needs to be current on:
California income tax brackets and rates
State-specific deductions and credits
California conformity (or non-conformity) with federal tax law changes
Franchise Tax Board (FTB) procedures and deadlines
Local business taxes (LA City, LA County)
Make sure your preparer is experienced with California returns, not just federal.
Cost of Living Matters
LA tax preparers tend to charge more than preparers in other parts of California or the country. That's normal—cost of living, office rent, and overhead are higher here.
Don't expect Bakersfield pricing in Beverly Hills. But also don't overpay just because you're in LA.
Local Business Taxes
If you own a business in Los Angeles (city or county), you may owe:
LA City Business Tax
LA County Business License fees
Industry-specific taxes
Your tax preparer should know these requirements and help you stay compliant.
Multi-State Issues
Lots of LA residents work remotely for out-of-state companies or own property in other states. If you have multi-state tax obligations, make sure your preparer handles that (not all do).
When to Upgrade Your Tax Preparer
You might outgrow your current tax preparer. Here's when it's time to upgrade:
You should consider switching if:
✅ Your tax situation has gotten more complex
You started a business
You bought rental property
You're now filing in multiple states
You have stock options, RSUs, or complex investments
✅ You're not getting the service you need
They're hard to reach
They don't explain things
You feel rushed or dismissed
✅ You suspect they're making mistakes
IRS notices keep coming
Deductions seem off
Your refund is way lower than expected
✅ You're paying too much (or too little)
Fees don't match the complexity of your return
You're getting terrible service for premium pricing
✅ You want proactive tax planning
Your current preparer just files—they don't help you plan
You want strategies to reduce next year's taxes
Why Choose The Tax Shack for Your Los Angeles Tax Preparation
We know choosing a tax preparer is a big decision. Here's why LA families and small business owners trust us:
We're Local to Los Angeles and Encino
We understand California state tax law, LA cost of living, and the unique financial challenges facing people in this area. We're not a national chain—we're your neighbors.
We're CTEC-Certified and Experienced
Our team is registered with the California Tax Education Council and has years of experience handling personal and business returns for LA-area clients.
We're Available Year-Round
Tax questions don't only come up in April. We're here for you 365 days a year—whether you need help with estimated taxes in September or an IRS notice in July.
We Find Deductions Others Miss
We know the tax code inside and out (seriously, we have a podcast about it called Deduction Daddy). We dig into your specific situation to find every legitimate deduction you're entitled to.
We Communicate Clearly
No jargon, no confusing tax speak. We explain everything in plain English so you understand exactly what's happening with your taxes.
Our Pricing Is Transparent
We give you a clear quote upfront based on your situation. No hidden fees, no surprise charges, no percentage-of-refund schemes.
We Offer Virtual and In-Person Options
Meet with us in our Encino office or handle everything online—whatever works for your schedule.
We Have a Judgment-Free Approach
Behind on taxes? Made mistakes? We've seen it all, and we're here to help without making you feel bad about where things stand.
Ready to Find Your Tax Preparer?
Choosing a tax preparer doesn't have to be stressful. Follow the steps in this guide, ask the right questions, and trust your instincts.
If you're looking for a tax preparer in Los Angeles who's experienced, trustworthy, and actually cares about saving you money, let's talk.
📞 Call us: 818-365-1040
🌐 Book online: www.mytaxshack.com
📧 Email: taxes@mytaxshack.com
We offer free consultations where we'll review your tax situation, answer your questions, and give you a clear quote—no pressure, no obligation.
Serving Los Angeles, Encino, and the San Fernando Valley since 2015.
Frequently Asked Questions
How much should I expect to pay for tax preparation in Los Angeles?
Pricing depends on complexity, but expect to pay more in LA than in rural areas due to higher cost of living.
What's the difference between a CTEC preparer, EA, and CPA?
CTEC: California state-registered, required to prepare taxes in CA
EA: Federally licensed by IRS, can represent clients in all states
CPA: Licensed accountant, can provide broader financial services
All are qualified, but EAs and CPAs generally have more advanced expertise.
Should I use a big chain (H&R Block, Jackson Hewitt) or a local preparer?
Chains: Lower cost, convenient locations, but you may see a different preparer each year and get less personalized service.
Local preparers: More personalized, consistent relationship, often more experienced, but may cost slightly more.
Our take: Local preparers offer better long-term value for complex situations.
Can I switch tax preparers mid-year?
Yes! You're not locked in. If you're unhappy with your current preparer, you can switch anytime. Your new preparer will need copies of your previous returns.
What if my tax preparer makes a mistake?
A good preparer will fix mistakes at no charge and handle any IRS correspondence. Make sure this is covered in your engagement agreement before you hire them.
Do I need a tax preparer if I use TurboTax?
If you have a simple W-2 return with no deductions, TurboTax might be fine. But if you're self-employed, own a business, have rental property, or itemize deductions, a professional will likely save you more than they cost.
How early should I start looking for a tax preparer?
Best time: November-January (before tax season rush)
Okay time: February-March (but expect longer wait times)
Last resort: April (preparers are swamped, may not accept new clients)
Start early to get the best service and avoid the rush.
What should I bring to my first meeting?
Previous year's tax return
W-2s and 1099 forms
Records of income and expenses
Receipts for deductible expenses
Any IRS notices
Your preparer will give you a complete checklist.
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About The Tax Shack: We're a CTEC-certified tax preparation service serving Los Angeles and Encino, as well as Las Vegas. We specialize in personal tax filing, small business taxes, IRS problem resolution, bookkeeping, and payroll. Our mission: help you keep more of what you earn while staying 100% compliant.
Listen to our podcast: I Got a Guy, The Deduction Daddy Podcast - tax tips, strategies, and financial advice in plain English.
Serving Los Angeles, Encino, and the San Fernando Valley, as well as Las Vegas and surrounding areas.
Virtual appointments available nationwide.
**Disclaimer:** The information provided on this page is for general informational purposes only and should not be considered legal, financial, or tax advice. Every tax situation is unique, and the services, pricing, and strategies described may vary based on individual circumstances. For personalized guidance tailored to your specific needs, please schedule a consultation with our team. The Tax Shack is not liable for decisions made based solely on the information presented here without professional consultation.
