Why Hire a Credentialed Tax Preparer?

A Preparer Tax Identification Number (PTIN) is not a professional credential. It's the registration number the IRS requires someone to have before they can legally prepare federal tax returns for compensation — nothing more.

A PTIN does not, by itself, mean the preparer has passed a tax exam, completed professional tax training, earned a license, or agreed to the same professional standards that apply to an Enrolled Agent, CPA, or attorney. The IRS itself notes that tax professionals with PTINs have differing levels of skill, education, and expertise.

As of August 1, 2026, 879,698 people held current 2026 PTINs, according to the IRS's own preparer statistics page. Among the credentials and qualifications reported: 68,548 Enrolled Agents, 208,519 CPAs, 26,039 attorneys, and 72,049 Annual Filing Season Program Records of Completion. Some preparers hold more than one credential, so these categories can't simply be added together to calculate an exact percentage of credentialed versus unenrolled preparers.

At the 2026 IRS Nationwide Tax Forum, IRS data presented earlier in the year showed that 57% of PTIN holders were unenrolled and did not participate in the voluntary Annual Filing Season Program. The IRS's newer August figures are a good reminder that these numbers should always be dated when cited — the preparer population changes throughout the year.

This matters even more if you're a foreign taxpayer. You may be dealing with U.S. tax treaties, ITIN applications, foreign income, withholding, business ownership, real estate, or other international issues that many domestic preparers rarely encounter.

And if the return is wrong, you are still the taxpayer responsible for it.

Credentialed vs. Just Having a PTIN

These are not the same thing.

Credentialed preparers

Enrolled Agents, CPAs, and attorneys hold professional credentials and have unlimited representation rights before the IRS. They can represent taxpayers in examinations, collections, payments, and appeals.

An Enrolled Agent, for example, is federally licensed by the IRS. EAs must pass a comprehensive three-part federal tax examination — or qualify through certain IRS experience — pass a suitability check, and complete ongoing continuing education.

Credentialed practitioners are also subject to professional standards governing practice before the IRS. Circular 230 imposes requirements around due diligence, tax-return standards, professional competence, advertising, and other conduct.

PTIN-only preparers

A person with an active PTIN but no professional credential can legally prepare a federal tax return for compensation.

But per the IRS's own guidance, PTIN-only preparers who don't participate in the Annual Filing Season Program have no rights to represent taxpayers before the IRS at all — not even for a return they personally prepared and signed. Their role is essentially limited to preparing the return itself.

Non-credentialed preparers are also not required to have training in tax law and aren't subject to Circular 230. That doesn't mean every unenrolled preparer does poor work. Many are experienced and careful. It does mean that a PTIN alone tells you almost nothing about the person's training or qualifications.

A Real Example

Christian came to ITIN Abroad because he needed an ITIN.

He provided a business tax return that had already been prepared by a company based in India, along with the related paperwork.

When I reviewed the return, I found problems on every single form — issues significant enough that the ITIN application would have been rejected if we had submitted the return as it was.

Christian had paid almost $1,000 for that tax return. Most importantly, it had no paid preparer listed anywhere on it, despite being a business return prepared by a company he'd paid to do the work.

Before we could submit his ITIN application, I had to prepare a new, correct return. Christian was never able to recover the money he'd already paid. But he understood what had happened because I had explained all the mistakes on his return to him, and filed with me every year afterward. He knew I had his best interests at heart and was actually credentialed to represent him if it ever mattered.

His experience demonstrates something foreign taxpayers may not realize: a professionally formatted tax return is not necessarily a professionally prepared tax return.

What Is a Ghost Preparer?

A ghost preparer is someone who prepares a tax return for compensation but refuses to sign the return or include their PTIN. The IRS specifically identifies this as a serious warning sign — paid preparers are required to sign the returns they prepare and include a valid PTIN.

A ghost preparer may:

• Leave the Paid Preparer section blank

• Make the return appear to have been self-prepared

• Refuse to provide a PTIN

• Promise unusually large refunds

• Claim deductions or credits the taxpayer doesn't qualify for

• Disappear after the return is filed

  
  

The IRS warns that ghost preparers may exaggerate deductions or credits and leave the taxpayer responsible for penalties, interest, or an audit after the preparer disappears.

Christian's return had one of the clearest warning signs: he had paid someone to prepare it, but there was no preparer identified anywhere on the return. If you paid someone to prepare your tax return and they ask you to submit it as though you prepared it yourself, stop and ask why.

Why Foreign Taxpayers Can Be Especially Vulnerable

Foreign taxpayers may not know what a normal U.S. tax-preparation process looks like.

You may not know:

• That a paid preparer is supposed to sign the return

• What a PTIN is

• Whether a tax credential is real

• Which forms your situation actually requires

• Whether a treaty provision has been applied correctly

• Whether your income has been classified correctly

• Whether the preparer can represent you if the IRS questions the return

  
  

You may also be comparing U.S. tax preparation to the tax system in your home country, where returns may be much simpler. That creates an opening for an inexperienced or dishonest preparer to appear knowledgeable simply because you have no easy way to judge the work.

The Accountability Gap

This is the part that surprises most people: you, the taxpayer, are responsible for the accuracy of your return — regardless of who prepared it.

Put together, these facts matter a lot:

• Unenrolled preparers generally carry no liability insurance requirement.

• The IRS has limited to no authority to discipline or remove someone who was never enrolled to begin with.

• If the return is wrong, the burden — the tax owed, penalties, and interest — falls on you, not the preparer. To fix these issues, you'll likely have to hire someone credentialed to help sort everything out, and this can end up being more expensive than hiring a credentialed preparer the first time.

  
  

If an unenrolled preparer causes a problem, you may still be left needing to pay additional tax, pay penalties and interest, amend one or more returns, reconstruct records, respond to IRS notices, hire a credentialed professional to determine what went wrong, and pay again to have the work corrected. By the time enforcement ever reaches a bad preparer, individual taxpayers may already have suffered significant damage.

Hiring a credentialed preparer doesn't guarantee perfection. It does give you a professional who has demonstrated qualifications, has representation rights, and has professional accountability behind the work.

How to Verify a Tax Preparer Before You Pay

Before hiring someone, ask a few basic questions:

• Are you an Enrolled Agent, CPA, or attorney? Don't ask only whether they have a PTIN.

• Can I verify your credential? Search the IRS Directory of Federal Tax Return Preparers for their name to confirm their credential and standing.

• Will you sign my tax return? Paid preparers are required to sign returns they prepare and include their PTIN.

• Can you represent me if the IRS questions this return?

• Do you regularly handle international or ITIN-related tax returns?

• Will I receive a complete copy of everything filed?

• Will I receive a written engagement letter explaining what you're responsible for?

Also be cautious of anyone who:

• Bases their fee on the amount of your refund

• Promises a refund before reviewing your records

• Asks you to sign a blank return

• Wants your refund deposited into their own account

• Refuses to explain what's being filed

What TIGTA Investigates

The Treasury Inspector General for Tax Administration (TIGTA), which investigates misconduct connected to tax administration, tracks a specific set of abuses by unethical preparers, including:

• False statements on IRS Form 2848, Power of Attorney and Declaration of Representative

• Failing to disclose that a practitioner is disbarred or otherwise unauthorized to appear before the IRS

• Fabricating documents purporting to be from the IRS

• Unauthorized disclosure of protected tax information

• Theft of refunds

  
  

These aren't hypothetical risks. They're categories serious enough that a federal agency exists specifically to investigate them.

Is Regulation Coming?

There's real legislative movement on this right now. H.R. 9499, the Protecting Taxpayers from Ghost Preparers Act, addresses problems created when a paid preparer fails to identify themselves on a return — it closes a loophole where preparer misconduct could indefinitely extend the IRS's window to assess additional tax, even when the taxpayer had no intent to evade anything. It passed the House Ways and Means Committee by a 40–0 vote in July 2026.

Separately, the bipartisan Taxpayer Assistance and Service Act ("the TAS Act," S. 3931) — introduced by Senate Finance Committee Chairman Mike Crapo and Ranking Member Ron Wyden — explicitly includes a provision to "protect taxpayers by strengthening standards for paid tax preparers." Neither bill has been signed into law yet.

The National Taxpayer Advocate has recommended minimum competency standards for paid preparers for years, and the last three presidential administrations have each separately recommended Congress grant Treasury this authority. Until something is actually enacted, verifying a preparer's credentials yourself remains the only real protection.

FAQ

Is a PTIN the same as being IRS-certified?

No. A PTIN allows someone to legally prepare federal tax returns for compensation. It doesn't establish professional tax credentials, education, or expertise.

Is it illegal for an unenrolled preparer to prepare my taxes?

No. Someone with a valid PTIN can legally prepare federal tax returns for compensation. The difference is that PTIN-only preparers don't have the professional credentials or representation rights of an EA, CPA, or attorney.

What's the difference between an unenrolled preparer and a ghost preparer?

An unenrolled preparer may legally prepare returns using a valid PTIN. A ghost preparer prepares a return for compensation but fails or refuses to sign it or provide the required PTIN.

Can a credentialed preparer still make a mistake?

Yes. No credential guarantees a person will never make an error. The difference is the required training, professional standards, representation rights, and accountability attached to the credential.

Does ITIN Abroad prepare tax returns?

ITIN Abroad focuses on ITIN applications along with tax return preparation for those who would like assistance. These returns are prepared and signed by Hayden McCoy, an Enrolled Agent who also operates Synergy Wealthcare Solutions, a tax strategy practice.

A PTIN tells you someone registered with the IRS to prepare tax returns for compensation. It doesn't tell you whether that person is qualified to handle your tax situation. Before trusting someone with your U.S. tax return or ITIN application, verify their actual credentials.