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Given the complicated nature of US expat taxes — with unique tax breaks, reporting requirements, and deadlines — many Americans abroad choose to hire a specialized expat tax professional. Those who have never worked with a professional specifically versed in taxes for Americans abroad often wonder how to choose a CPA who will be the best match for their needs.
While working with an expat CPA is generally the best way to ensure the accuracy of your return and minimize your US tax burden, you’ll want to find the professional who is the right fit for your unique circumstance. But how exactly can you do that?
Below, we’ll walk you through our top tips for choosing an expat tax provider. You’ll learn what to look for in a tax professional, which questions to ask, how to confirm they’re a good fit, and more.
TL;DR: The ultimate expat CPA checklist
Looking for a quick and easy way to assess your different CPA options? Refer to our checklist below:
- CPA license
- Specialization in US expat taxes
- Several years of professional experience
- Positive client reviews
- General familiarity with tax laws in your country of residence
- Experience working with clients in your circumstance which might include:
- Dual citizens
- Citizens seeking renunciation
- Accidental Americans
- Foreign non-residents
- Digital nomads
- Entrepreneurs/business owners
- Spouses of non-US nationals
- Retirees or soon-to-be retirees
- Foreign property owners
- Recipients of IRS audit notifications
- Those with past-due tax returns, reports, or payments
- A process aligned with your needs
- Transparent pricing within your budget
Now, let’s get into more detail about what makes a good CPA.
What is a CPA?
A CPA is a professional who has earned the Certified Public Accountant (CPA) designation from one of the 50 US states.
To become a licensed CPA, they have:
- Completed a bachelor’s degree at an accredited educational institution: Although this degree does not necessarily have to be a Bachelor of Accounting, most jurisdictions require CPAs to complete at least 24 accounting-related credits
- Earned 150 college-level credits: While most bachelor’s degrees require you to have earned 120 college-level credits, the CPA designation requires you to earn 150 total. CPAs can do this by double-majoring as an undergrad, earning a master’s degree in accounting or a related field, or taking additional college-level coursework
- Passed the Uniform CPA Examination ®: The American Institute of Certified Public Accountants (AICPA) designs and administers the CPA exam, a rigorous, sixteen-hour exam that covers:
- Three core sections:
- Auditing & Attestation (AUD)
- Financial Accounting & Reporting (FAR)
- Taxation & Regulation (REG)
- One “discipline” section of choice:
- Business Analysis & Reporting (BAR),
- Information Systems & Control (ISC), or
- Tax Compliance & Planning (TCP)
- Three core sections:
- Gained relevant work experience: Finally, a CPA candidate must have accounting-related work experience to put their knowledge and skills into practice. The exact amount of required work experience varies by state but typically includes anywhere from 1,000 to 2,000 hours, equal to about one to two years of employment.
Note:
Many jurisdictions also require CPAs to complete an ethics exam.
Once they complete all of the relevant requirements, a CPA candidate can apply for licensure in their relevant US jurisdiction. At that point, they are qualified to provide professional auditing, consulting, and tax preparation services.
Other types of tax professionals
When evaluating tax preparers, you should always confirm what certification they hold. The value of hiring a licensed CPA is the reassurance that the individual has the knowledge, skills, and experience needed to provide accounting services. But note— while all CPAs are professionally qualified to serve as tax preparers, not all who work as tax preparers are licensed CPAs.
Enrolled Agents
An enrolled agent (EA) is a professional who can provide tax preparation and filing services. To become an EA, they must:
- Obtain a Preparer Tax Identification Number (PTIN)
- Pass all three parts of the Special Enrollment Examination (SEE) within three years ( thoughsome who have previously worked at the IRS are exempt from the SEE)
- Apply for enrollment and pay the enrollment fee
- Pass a background check to confirm prior tax compliance and a clean criminal record
- Engage in 72 hours of continuing education every three years
While EAs are also qualified to provide tax preparation services, their formal educational requirement is less extensive. Becoming an EA doesn’t require a college degree and typically takes about a year. In contrast, becoming a CPA can take up to seven years.
Furthermore, hile EAs specialize in taxes, CPAs also study accounting, bookkeeping, financial planning, payroll management, risk management, and business advisory services. Accordingly, EAs typically offer a narrower area of expertise and scope of services.
As a result, CPAs may be a better fit for small business owners, people with complex tax situations, and those who want broader financial and/or accounting advice.
Tax Attorneys
While tax attorneys are also tax experts, they focus on taxation from a legal perspective. To become a tax attorney, you must:
- Earn a bachelor’s degree at an accredited educational institution
- Earn your juris doctor (JD) at an accredited law school
- Pass a state bar exam
It often takes about seven to eight years in total to become a tax attorney.
Tax attorneys often specialize in areas such as tax litigation, negotiation, and legal document drafting rather than income tax return preparation, also known as compliance. Most people turn to tax attorneys when they:
- Are encountering serious or complex tax issues — like repeated audits or mounting debt — and face large fines, passport revocation or even jail time
- Require support preparing a will, trust, or estate plan
- Need representation in court
What kind of CPA do I need as an expat?
While all CPAs hold the same designation, not all of them have the same background and experience. As such, some may be more uniquely qualified to help you than others.
First and foremost, Americans living abroad should consider partnering with a CPA who’s familiar with US expat tax filing. This ensures that they will be familiar with expat-specific:
- Credits, deductions, & exclusions
- Forms, schedules, & other documents
- Reporting obligations
- Deadlines
- Tax treaties & totalization agreements
This, in turn, improves odds of an accurate, fully compliant filing and a minimal US tax liability.
Depending on your circumstances, you may also want to look for a CPA that specializes in helping those who:
- Live a digital nomad lifestyle
- Own or operate businesses
- Hold dual citizenship
- Have renounced US citizenship
- Live in your country of residence
- Qualify as accidental Americans
- Possess foreign real estate holdings
- Are married to non-US nationals
- Need to catch up on past tax returns, reports, or payments
- Are retired or plan to retire soon
- Have received an IRS audit notice
With some online research, you should be able to find the names of a few expat tax firms. From there, it’s time to compare their offerings, read client reviews, and meet their professionals, to get acquainted with their communication style and your confidence in their team.
Key questions to ask your potential tax firm
Before signing on the dotted line, it’s always helpful to have a conversation with the tax firms you’re evaluating.
Consider asking them the following questions:
Who will I be working with?
Meeting the specific professional you’ll be working with serves a few different functions. For one, it allows you to confirm their credentials and learn more about their background. Ideally, they’ll have several years of tax experience — so you know you will be in good hands.
Beyond your tax accountant, it’s helpful to ask whether they’re supported by a team, which can often improve the speed of communication and the level of accuracy in the tax preparation process.
What experience do you have working with clients like me?
It’s important to find a tax professional whose specialty aligns with your needs. Asking your potential CPA about times they’ve worked with clients whose circumstances were similar to yours will give you a better idea of whether they’re a good fit.
In particular, you might want to ask them about any concrete wins they’ve helped clients with similar profiles achieve. Having them describe how they helped someone in your situation will likely result in more meaningful responses than just asking them whether they’ve worked with someone in your situation.
What’s your typical process?
Not all tax firms and CPAs operate in the same way. Some provide more extensive support, while others offer a lighter touch.
If you have particularly complex tax needs, you may want to hold a kickoff meeting before tax season, schedule a tax planning session, and review your completed return before submission. If your tax needs are simpler, you may be comfortable simply sharing the relevant information with your CPA and allowing them to run the exercise without much input from you.
How does your payment structure work?
Finally, any CPA you work with should be able to provide you with a clear picture of the services they offer and a personalized estimate of fees right from the beginning. This helps you confirm whether their services are in your price range and ensures you won’t find yourself stuck with any surprise price increases, extras, or add-ons later in the relationship.
Bright!Tax checks all your boxes & more
Bright!Tax is a tax firm specifically geared toward American expats, dual citizens, accidental Americans, and foreign-national US taxpayers. Our team includes knowledgeable, experienced CPAs located across the globe, with experience in various areas of taxation like small business, retirement, expatriation, and more.
Reach out to us, and we’ll partner you with a CPA who is uniquely qualified to tackle your tax situation. And with flat fees, you never need to worry about surprise expenses.
Resources:
- How To Become A CPA: A Step-By-Step Guide
- Everything you need to know about the CPA Exam
- What Is a CPA and How Do I Become One?
- Become an Enrolled Agent
- How Long Does it Take to Become an Enrolled Agent?
- How to Become a CPA
- Enrolled Agent vs. CPA: Understanding the Key Differences for Your Tax Needs
- How to Become a Tax Attorney
- What’s The Difference Between A CPA And A Tax Attorney?
