Changing accountants during tax season

Changing accountants near a filing deadline starts with the status of each return. List the taxpayer, jurisdiction, form, tax period, due date confirmed by the responsible professional, and present stage. Distinguish work not started, preparation in progress, awaiting review, awaiting client approval, transmitted, accepted, and rejected.

Ask the outgoing accountant for the supporting evidence behind the status. A draft return is different from a filing acknowledgment. A signed authorization is different from confirmation that transmission occurred. An email saying everything is handled leaves too much uncertainty for the incoming team to act safely.

Name one internal coordinator to reconcile the two accountants' information. Keep this discussion factual even if the relationship has become difficult. The immediate objective is to protect the company's obligations and establish a reliable handover, while any dispute follows its own documented process.

Agree in writing which accountant completes which work and when that responsibility begins or ends. The new accountant should explicitly accept the assignment and confirm the inputs and time needed. Do not assume that forwarding a file creates an engagement or that ending one relationship automatically starts another.

Maintain a return-level log rather than one overall status for the company. Federal, state, local, business, and owner matters may be at different stages and may involve different professionals. The following is an illustrative control sheet, not a list of required filings.

An extension may create room for a controlled transition when it is available and properly requested. It is not a universal answer to an unfinished engagement. Have the responsible professional confirm the specific return, eligibility, deadline, required estimate, payment, and submission method.

For U.S. federal returns within its scope, Form 7004 requests additional filing time for certain business income tax, information, and other returns. The IRS instructions state that it does not extend the time to pay tax due. They also require a separate request for each applicable return, subject to the specified consolidated-return rules.

Check state and local obligations separately with the professional handling them. Do not infer their treatment from the federal form. Record who makes any payment estimate, who approves the funds, and how completion will be established. A transition calendar needs separate lines for filing and payment when their dates differ.

Request the agreed client records, prior filed returns, relevant elections and schedules, current accounting information, open questions, and work already delivered. Identify the version and period of each file. The incoming accountant should state which additional records are necessary after reviewing the package.

Keep unresolved judgments visible. If the outgoing preparer has asked about a transaction or identified an uncertain treatment, include that question and the evidence available. Removing an uncomfortable issue from the handover does not resolve it and can cause the new team to repeat work or proceed on incomplete facts.

The AICPA Member Insurance Programs' termination guidance recommends documenting the service end, unfinished matters, records, and items requiring follow-up. Use that structure to request a clear status letter. Rights to particular documents and any fee dispute require their own consideration under the engagement and applicable rules.

For U.S. federal matters, the IRS distinguishes a power of attorney for representation from a tax information authorization for receiving or reviewing specified information. Its guidance also describes a third-party designee for a particular return. The appropriate arrangement depends on the work the new professional will perform.

Ask the incoming professional which authorizations are required and how existing ones should be retained, replaced, or revoked. Identify the taxpayer, matters, and periods involved. A commercial engagement letter, accounting-software access, and an IRS authorization serve different purposes and should each be addressed explicitly.

Also agree where future notices and questions will be routed. Someone inside the company should continue checking the company's own correspondence. Keep acknowledgment of the handover and appropriate access changes with the return-status log.

Before either team sends another return, confirm what the other has already submitted for that taxpayer, form, and period. Investigate conflicting statuses instead of retransmitting on assumption. The responsible preparer should determine the appropriate next step if a return was rejected, accepted with an issue, or needs correction.

Finish with one agreed list of completed work, outstanding work, future deadlines, and owners. Keep the actual filing and payment evidence with it. A successful change leaves the company able to identify who is responsible today, even while commercial or historical questions remain under review.