WORKING WITH YOUR CPA · 4 MIN READ

How Do I Change Accountants?

Switching accountants is more common, and easier, than most people expect. Whether you’ve outgrown your current preparer, had communication problems, or need expertise your accountant doesn’t offer, a well-planned transition keeps your tax and financial records safe and your filings on schedule.

Good reasons to switch

• You need help with something beyond routine preparation, such as an IRS notice, an audit, multi-state or foreign income, or business planning.
• You only hear from your accountant at filing time and get no planning advice.
• Calls and emails go unanswered, or deadlines are missed.
• Your life or business has changed (a new business, a sale, an inheritance, a move abroad) and your accountant isn’t keeping up.
• Fees have risen without a matching increase in value.
• You’ve found errors or received IRS penalties tied to your accountant’s work.

Step-by-step: how to make the switch

1. Choose your new accountant first.

Don’t leave your current accountant until you’ve hired the next one. Confirm credentials (CPA, enrolled agent, or tax attorney), experience with your situation, and how fees are structured. Ask how they handle transitions.

2. Decide the right timing.

You can change at any time, but the least disruptive moments are after a return is filed and before the next season begins. If you’re switching mid-year or in the middle of an IRS matter, tell your new accountant right away so nothing falls through the cracks.

3. Notify your current accountant in writing.

A short, polite email or letter is enough. State that you’re ending the engagement, the effective date, and which records you want returned. You don’t have to explain your reasons.

4. Request your records.

Request the return of records you provided, such as W-2s, 1099s, receipts, and statements, and arrange a secure transfer. Applicable professional rules govern record-return obligations. Also request copies of:

• Prior-year tax returns (generally the last three to six years)
• Depreciation schedules and basis records
• Carryforwards (net operating losses, capital losses, credits)
• Business formation documents and payroll filings, if applicable
• Any IRS or state correspondence

If you owe an unpaid balance, your accountant generally still must return the documents you supplied. Rules on the accountant’s own work papers vary by state and by professional standards, so your new accountant can help sort out what’s needed.

5. Sign new authorizations.

If representation before the IRS or a state agency is part of the engagement, your new accountant will need appropriate authorization. For IRS representation, this generally includes:

• Form 2848 (Power of Attorney) to represent you before the IRS

Filing a new Form 2848 for the same tax matters and periods revokes the old one unless you specifically choose to keep it. You can also send the IRS a written revocation of your previous accountant’s authority. Do the same for state tax agencies where required.

6. Update access and accounts.

• Change passwords and remove your former accountant from shared portals, bookkeeping software, payroll systems, and bank or brokerage access you granted.
• Have your new accountant set up access to what they need.
• Update your e-file, EFTPS, or payroll provider information where applicable.

7. Handle open items.

Tell your new accountant about any pending items: unfiled returns, extensions, amended returns, IRS or state notices, estimated tax payments, and payroll or sales tax filings. A good transition meeting reviews what was filed, what is due, and what is outstanding.

8. Let your new accountant review prior returns.

A fresh review of your last few returns is common and valuable. It can identify errors, missed deductions, or elections worth making. Amended returns are generally allowed within three years of the original filing date (or two years from payment, whichever is later) to claim refunds.

What to expect from the first few weeks

• An engagement letter describing services, fees, and responsibilities.
• A document request list and an intake meeting.
• A review of prior returns and any open tax issues.

Common concerns

Will my old accountant be upset? Professionals expect clients to move on occasionally. Keep it brief and courteous.

Will switching trigger an IRS audit? Changing accountants is not, by itself, a reason to expect an audit. Your new advisor should still review any existing notices, filing issues, and deadlines.

What if I’m in the middle of an IRS audit or collection case? You can still switch. Tell your new representative immediately, bring all IRS correspondence, and note every deadline. Responses to IRS notices are time-sensitive, so don’t wait.

What if my old accountant made a mistake? Your new accountant can review the situation, correct the filings, and advise you on penalty relief. Keep copies of everything.

Ready to make a change?

If you’re considering a switch, we can help coordinate the transition, including record requests, necessary authorizations, a review of prior returns, and a plan for outstanding filings. The scope is agreed in your engagement. Contact our office to discuss the next steps.