Tax preparer screening questions: PTIN, AFSP, due diligence, data security and state registration

Tax preparer screening questions should confirm that the candidate can legally prepare returns for pay this season (a valid PTIN for the coming year and any state registration), which returns they have prepared and in what volume, how they meet the due diligence rules for refundable credits and head of household status, and how they protect client data. As of November 2026, the IRS is issuing 2027 PTINs for an $18.75 fee, each Form 8867 failure carries a $650 penalty for returns filed in 2026, and the IRS has reminded preparers that federal law requires a written information security plan. Credentials are optional for many seats: an Annual Filing Season Program record, enrolled agent status or a CPA license each add something different.

The tax accountant screening questions cover accounting-firm seats: return counts by form, review work, busy season at a firm, research tools, and how to verify a PTIN, EA or CPA. This page is for the preparer seat at retail and franchise tax offices, independent practices and year-round individual tax desks: the season itself, due diligence, signing, data security and state preparer rules. For seasonal hiring logistics, see the interview guide for seasonal roles.

Which tax preparer job is it?

Ask the office for the season dates and hours, the client mix, the software, whether preparers sign returns themselves, whether the office sells refund-related products, and whether preparers may do their own returns for clients on the side.

Which IRS and state rules apply?

• PTIN. The IRS PTIN page says anyone who prepares or assists in preparing federal tax returns for compensation must have a valid 2027 PTIN before preparing returns, enrolled agents included, and lists an $18.75 fee for new applications and renewals.
• Signing. IRS Tax Tip 2026-27 says paid preparers must sign and include a valid PTIN on every return, and that a "ghost" preparer prepares a return but refuses to sign it or include a PTIN.
• AFSP. The Annual Filing Season Program is voluntary: 18 hours of continuing education including a six-hour federal tax law refresher course with a test, a renewed PTIN, and consent to the obligations in Circular 230, Subpart B and section 10.51. Participants appear in the IRS public directory and may represent only clients whose returns they prepared and signed, before certain IRS employees.
• Representation rights. The IRS page on preparer credentials says PTIN holders without other credentials have no authority to represent clients before the IRS, while enrolled agents, CPAs and attorneys have unlimited representation rights.
• Due diligence. The IRS page on completing Form 8867 covers returns claiming the earned income tax credit, child tax credit, additional child tax credit, credit for other dependents, American opportunity tax credit or head of household status, and lists a $650 penalty per failure for returns filed in 2026.
• Data security. In IR-2026-92 (August 18, 2026), the IRS says federal law requires tax and accounting professionals to create and maintain a written information security plan, and points to Publication 5708 for a template.
• Confidentiality. 26 U.S.C. 7216 makes it a misdemeanor for a preparer to knowingly or recklessly disclose return information, or use it for anything other than preparing the return, except as the rules allow.
• E-file. The IRS page on becoming an authorized e-file provider says the firm applies for the EFIN, and its Principals and Responsible Officials may face credit, tax compliance and criminal background checks; those who are not certified or licensed professionals are fingerprinted.
• State rules. California's CTEC registration requires a background check with Live Scan, 60 hours of qualifying education, a PTIN and a $5,000 surety bond, then 20 hours of continuing education a year and renewal by October 31. Oregon's Board of Tax Practitioners says anyone preparing Oregon personal income tax returns for pay must be licensed or registered with it. New York's preparer registration is annual, with a $100 fee and state courses for commercial preparers. Maryland's State Board of Individual Tax Preparers runs examination, registration and continuing education. CPAs, enrolled agents and attorneys generally follow their own credential rules; check each state's exemptions.

Knockout questions

Return preparation and due diligence questions

1. "A client claims head of household and the earned income credit with two children. What do you ask before you file?"
   • Strong answer: relationship, age and residency of each child, whether anyone else could claim them, who paid the costs of the home, the income documents, and the Form 8867 questions, with the answers kept in the file.
   • Red flags: "I enter what they tell me," or "the software handles due diligence."
2. "A client's self-employment income looks too round, or too small for the expenses claimed. What do you do?"
   • Strong answer: asks for records, documents the conversation, and does not prepare a return they believe is wrong.
   • Red flags: picks numbers that maximize the refund.
3. "Tell me about a return you declined to prepare or sign."
   • Strong answer: a specific case (made-up dependents, unsupported expenses), how they told the client, and who they told in the office.
   • Red flags: has never turned anything down in several seasons.
4. "Which forms and schedules have you prepared most, and which have you never done?"
   • Strong answer: an honest list (Schedules A, C, D, E and SE, education credits, prior-year and amended returns, state returns) and the gaps.
   • Red flags: only simple wage returns, for a seat with small business clients.
5. "A client gets an IRS notice about a return you prepared. What can you do?"
   • Strong answer: knows their own representation rights (none without a credential or AFSP, limited with AFSP, unlimited for an EA or CPA) and when to hand the matter to someone who has them.
   • Red flags: offers to handle an examination or collection case without the right to represent.
6. "A client asks you to guarantee the size or timing of their refund."
   • Strong answer: no guarantees; explains what the refund depends on and how the client can track it.
   • Red flags: promises an amount before seeing the documents.

Data security, software and workload questions

How does tax preparer experience get overstated?

• Intake as preparation. Scanned documents and entered data while someone else prepared and signed. Ask who signed.
• Volunteer returns as complex work. VITA returns are usually simpler by design. Ask which schedules they prepared.
• The office's count. "Our office filed 5,000 returns." Ask for their own.
• Representation without rights. "Handled audits" without being an EA, CPA, attorney or AFSP participant on their own returns. Ask what they did and who signed the authorization.
• "Enrolled agent" after passing one part of the exam. Ask which parts and when.
• "Paperless and secure." Ask what the written security plan said.

A 15-minute phone-screen flow

1. Minutes 0 to 2: season dates and hours, client mix, software, signing and outside-work policy.
2. Minutes 2 to 5: knockouts 1 to 5; write down the PTIN status and any state registration to verify.
3. Minutes 5 to 10: the head of household question and the declined return. Write down their steps in their words.
4. Minutes 10 to 13: the IRS notice question and one data security question.
5. Minutes 13 to 15: pay expectations, per return, hourly or salary (see salary expectation questions), and next steps.

Scoring

What to put in the submittal

Tax preparer: [name]
PTIN: [2027 obtained / in progress]; state registration: [CTEC / OR / NY / MD / not required], verified [date]
Credentials: [AFSP record / EA / CPA / none]
Last season: [returns prepared], mix [schedules], signed as preparer [yes or no]
Due diligence: [summary of the head of household answer]
Declined return: [one line]
Software: [names, seasons]
Data security: [plan, portal, identity checks]
Availability: [season dates, hours, evenings and weekends]
Candidate's own gap: [e.g. "no rental or Schedule C returns; no state registration yet"]

Lawful phrasing

California's CTEC registration and the IRS's checks on e-file Principals and Responsible Officials include background reviews, but an employer's own criminal history and credit checks follow the FCRA and state rules; see the FCRA background check process, ban the box interview questions and credit check laws for employers before asking about either. State the season's hours and ask whether the candidate can work them; do not ask about childcare or family. Returning seasonal staff still need a correct Form I-9; see Form I-9 for seasonal and returning workers. This page is not legal advice.