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The biggest red flag when hiring an accountant is anyone who asks you to sign a blank form or promises a result before seeing your papers. The CRA gives the same advice: never sign a blank tax form, ask for a copy of what’s filed, and remember you’re responsible for every number on your return, whoever typed it.
Which red flags matter most?
Some are a matter of taste. These aren’t. If you see one, slow down. If you see two, walk away.
| What you see | Why it worries us | What to do |
|---|---|---|
| Asks you to sign a blank form | You can’t check what gets filed in your name | Refuse, and leave |
| Promises a refund or savings before seeing your slips | Nobody knows the result yet | Ask how they reached the number |
| Won’t say what the fee covers | Bookkeeping, GST/HST and year end often cost extra | Get a written scope |
| Can’t show credentials | You can’t tell who’s accountable | Check the provincial CPA body’s directory |
| Won’t give you a copy of the filed return | You need it for loans, audits and next year | Ask before you hire |
| Suggests claims you didn’t incur | The penalty lands on you | Say no in writing |
| Goes quiet near a deadline | Late filing carries interest and penalties | Ask who tracks dates |
A cheap quote is a softer flag. It may be fine, and it may leave out half the work. Compare scope, not price.
What does a dishonest claim cost you?
Here’s a case. You’re a sole proprietor in Ontario with $60,000 of net income, and your preparer offers to add $5,000 of expenses you never had. The self-employed tax calculator shows income tax and CPP falling from $14,602.92 to $13,079.30 on $55,000. That’s $1,523.62 saved on paper.
The catch is what happens next. According to the CRA’s own daycare income page, a false statement can bring a penalty of $100 or 50% of the understated tax, whichever is greater. The income tax side of that $5,000 is $928.62, so half is $464.31, added to the tax itself and interest. And the return has your name on it, not theirs.
Numbers from an estimate tool can’t tell you what applies in a real audit. What they show is the size of the temptation, and it’s exactly what a bad preparer sells.
Is a missing licence always a problem?
No, and this is worth saying plainly. Plenty of honest people prepare simple returns without a designation. What matters is that they say so, and that you don’t hand them anything beyond their skill. A corporate return, payroll or a sale of a business isn’t a beginner job.
If they claim to be a CPA, check. Provincial CPA bodies keep public directories of their members. CPA Ontario’s lists members, firms and licence holders, and the search takes a couple of minutes. We couldn’t reach that page to confirm its current wording, so look at it yourself.
What should you ask on the first call?
Keep it short and listen to how they answer.
- Who does the work, and who do I call when I have a question in July?
- What is in the fee, and what costs extra?
- Have you handled a business like mine?
- How do you send and store my documents?
- Who watches my GST/HST, payroll and instalment dates?
Good answers are specific. Bad ones are warm and vague. If your business is close to the $30,000 GST/HST line, ask when you’d need to register. The tax instalments calculator and the corporate tax calculator give you a rough figure to test their answers against. In Ontario, $150,000 of active business income in a corporation gives about $17,544 of corporate tax in the tool, which uses a blended 2026 small business rate, so a preparer who quotes a very different figure owes you a reason.
What if you already hired someone who worries you?
Ask for your records and a copy of everything filed. Read your last return line by line. If a number seems wrong, ask where it came from. You can leave at any time, and a good successor will start by looking at that return.
If you believe money was claimed dishonestly, the CRA has a route to report it to its enforcement division. We can’t tell you how to fix a bad filing, and an amended return is worth a proper conversation with a licensed accountant. For the other side of this decision, our page on moving from DIY to professional bookkeeping covers what to hand over.
We couldn’t confirm typical accountant fees from any official source, so this page doesn’t quote any.
Where the numbers come from
The advice on blank forms, copies and responsibility comes from a Canada Revenue Agency tips page on preparer fraud (an archived page). The penalty wording comes from a CRA page on reporting daycare income. The GST/HST limit comes from the CRA’s registration page. Examples use this site’s calculators with 2026 data. We have no link with the CRA, a government body or an accounting firm.
Frequently asked questions
Should I ever sign a blank tax form?
No. The CRA advises against it, because you can't check what is filed in your name.
Am I responsible if my accountant makes an error on my return?
You remain accountable for the information on your return, even when someone else prepares it.
How do I check that an accountant is a CPA?
Search the public directory of the provincial CPA body. In Ontario, CPA Ontario lists members, firms and licence holders.
Is a low fee a red flag?
It can be, if the quote leaves out work you need. Compare what each written quote covers.
What should an accountant hand over after filing?
A copy of the filed return, plus any slips and schedules they used.
- How to choose a tax preparer in Canada
How to decide if you need a tax preparer, what a preparer does, the questions to ask before you hire one and where to find free help in Canada
Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.