IRS Publication 5924 – IRS Forms, Instructions, Pubs 2026 – Small business owners face unique tax challenges — from deducting home office expenses and vehicle mileage to handling payroll taxes, quarterly estimates, and industry-specific credits. Making the wrong choice in a tax preparer can lead to costly errors, missed deductions, audits, or even identity theft.
IRS Publication 5924 (Rev. 4-2025) — titled Tips to Help Small Businesses Choose a Tax Preparer — provides official, straightforward guidance straight from the IRS. This concise resource reminds business owners that you remain fully responsible for the accuracy of your tax return, even if a professional prepares it.
Download the free PDF here: https://www.irs.gov/pub/irs-pdf/p5924.pdf
Why Small Businesses Should Follow IRS Publication 5924?
Business tax returns are more complex than individual ones. A qualified preparer can help you:
- Maximize legitimate deductions and credits (Section 179, qualified business income deduction, R&D credits, etc.)
- Stay compliant with employment taxes, sales tax, and state filings
- Avoid penalties for underpayment or late filing
- Plan year-round for estimated taxes and major business decisions
The IRS notes that most preparers are honest and competent, but poor choices have cost taxpayers thousands in the past. Publication 5924 helps you choose wisely.
8 Key Tips from IRS Publication 5924
The publication distills the most important steps into practical advice:
- Search the Official IRS Directory First
Visit the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications.
This free, searchable tool lists preparers who hold IRS-recognized credentials (CPAs, Enrolled Agents, attorneys) or have completed the Annual Filing Season Program. Filter by location and credential type. - Verify Professional Credentials
All paid preparers must have a current PTIN (Preparer Tax Identification Number).
Look for unlimited representation rights if you anticipate IRS audits or appeals:- Enrolled Agents (EAs) — IRS-licensed, pass a comprehensive exam, 72 hours of continuing education every 3 years.
- CPAs — State-licensed, extensive accounting education and exam.
- Attorneys — State bar licensed.
Preparers in the Annual Filing Season Program have limited representation rights but still meet IRS continuing-education standards.
- Check the Preparer’s Reputation
Contact your local Better Business Bureau and search for complaints.
Verify Enrolled Agent status directly at IRS.gov/enrolledagentstatus. - Ask About Fees Upfront
Get a clear written estimate before any work begins.
Red flag: Fees based on a percentage of your refund or promises of an unusually large refund. - Confirm They Are an Authorized IRS e-File Provider
Use the Authorized IRS e-File Provider Locator.
Electronic filing speeds up refunds and reduces errors. - Ensure Year-Round Availability
Tax season ends in April, but questions (or audits) can arise anytime. Choose someone who will answer calls in July or October. - Bring Complete Records — and Review the Return
Organize receipts, bank statements, mileage logs, and prior returns.
Always review the finished return before you sign it. Ask questions about anything you don’t understand. - Require the Preparer to Sign and Include Their PTIN
Legitimate preparers must sign the return and enter their PTIN. Never sign a blank or incomplete return.
Additional Smart Questions to Ask a Small Business Tax Preparer
- How many years have you prepared small business returns in my industry?
- Do you handle payroll taxes, sales tax, and multi-state filings?
- Have you represented clients in IRS audits?
- What accounting software do you use (QuickBooks, Xero, etc.)?
- Can you provide references from other small business clients?
Red Flags to Avoid
- Promises of “guaranteed” large refunds
- Offers to deposit your refund into their account
- Pressure to file before you’ve reviewed the return
- No PTIN or refusal to sign the return
- “Ghost” preparers who disappear after filing
- Anyone who wants you to sign a blank return
Report abusive preparers to the IRS using Form 14157 (Complaint: Tax Return Preparer) or Form 14157-A (Fraudulent Refund Claim).
Helpful IRS Resources (All Current as of 2026)
- Choosing a Tax Professional
- Understanding Tax Return Preparer Credentials
- Watch the official IRS video: Choose a Tax Preparer Wisely
- Topic No. 254 – How to Choose a Tax Return Preparer
Final Takeaway from IRS Publication 5924
Choosing the right tax preparer is one of the most important decisions a small business owner makes each year. Take time to research, ask questions, and verify credentials. The few extra hours you invest now can save you thousands in taxes, penalties, and stress later.
You are ultimately responsible — but with the guidance in Publication 5924 and the official IRS tools, you can confidently select a qualified professional who treats your business like their own.
Action Steps Today
- Download Publication 5924
- Search the IRS Directory for preparers in your area
- Contact 2–3 candidates and ask the questions above
- Schedule a consultation before the busy season ramps up
Need more help? The IRS Taxpayer Advocate Service and local Small Business Development Centers (SBDCs) also offer free or low-cost guidance for small businesses.
By following the straightforward advice in IRS Publication 5924, you protect your business, maximize legitimate tax savings, and gain peace of mind during tax season.
Last updated: February 2026. Always verify the latest IRS resources directly on IRS.gov, as rules and directories are updated regularly.