MW My CPA mixed up my tax-return info with another client's. Is this a warning signal I shouldn't ignore?

By Beth Pinsker

'I assumed that uploading documents to a secure vault meant they would be handled safely'

"I'm concerned this may be a major red flag and that I should consider switching tax preparers next year."

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Dear Fix My Portfolio,

This is my second year using a tax-preparation firm led by a certified public accountant. Previously, a family friend who is an accountant handled my taxes, but they retired. Last year's experience with the firm went smoothly. I uploaded all my documents again this year and expected the same.

However, when I received my return for review, I noticed some serious issues. There was interest reported from a bank account that isn't mine-in fact, it's not even a bank I've ever used. Additionally, someone else's phone number was listed on my file.

What is going on? I assumed that uploading documents to a "secure vault" meant they would be handled safely. How could my information have been mixed up with someone else's file?

At this point, I'm concerned this may be a major red flag and that I should consider switching tax preparers next year. That said, is it possible this was just an honest mistake and that I could continue working with them? Starting over with a new tax preparer is such a hassle.

Insecure

Dear Insecure,

It's a good thing you looked over your return carefully when your preparer sent it back to you. Not everyone does that, even though they should. It's your signature that goes on the return, so at the end of the day, the buck stops with you.

Every taxpayer should be involved in the process and know what they're claiming. That especially goes for married couples filing jointly, even if one partner typically takes care of all the prep work.

Doing taxes used to be a very high-touch process, where you'd meet in person with your preparer and hand over all your documents, and they'd complete your return right in front of you. I still do taxes this way as a volunteer for the Volunteer Income Tax Assistance program.

I have to verify each client's identity with an ID and a Social Security card, and then they sit and wait while I prepare their return and it's reviewed, in case there are any questions. For more complicated returns, you might have dropped off your paperwork and come back later to sign, but you still would have had some face time with the preparer.

Many tax preparers these days have moved away from in-person visits. Even if they still meet with clients, there's often some kind of upload process where you scan in your W-2s and 1099s. Even tax software used for self-preparation may require this in order to reduce manual data entry errors.

Same security as a bank

You're right to question what happens to that material once it's uploaded. Your files should remain your files. As a consumer, you should expect the same level of security you'd get from a bank when uploading a check through its mobile app. You wouldn't want your money to be deposited into someone else's account by mistake and, while you might be less upset if someone else's money landed in your account, it would still be a hassle to sort out.

One explanation for someone else's information appearing on your tax return is simple human error. "It's possible, even when documents are uploaded digitally, that a preparer could have multiple windows or files open and make a transposition error," said Thomas Gorczynski, a tax professional and enrolled agent with the IRS. "Data-entry mistakes can happen. Nobody is perfect."

Gorczynski said you did exactly the right thing by reviewing your return to ensure everything looked correct. "An initial review by the taxpayer is essential," he said.

His advice is to notify the preparer about the mistake and ask for an explanation. "I tend not to judge someone based on a single data-entry error. I've made them myself," he said. "If there's a pattern, then you may have reason for concern."

A cause for concern

When choosing a tax professional, stick with somebody who is a CPA or has an enrolled-agent designation. Anyone can claim to be a professional tax preparer, but you want somebody who is properly trained. You can start with the IRS directory of credentialed professionals. You can also get free tax help through the VITA program.

Matthew Cordes, who is also an enrolled agent with the IRS, was less forgiving about your situation, calling a mix-up of tax statements from an upload folder "definitely a cause for concern" regarding your preparer's review process.

Cordes noted that credentialed tax professionals - including enrolled agents and CPAs - have due-diligence and ethical obligations. Still, he acknowledged, they are human and can make mistakes, and therefore they should be using a secure portal or another safe method for transferring documents digitally.

"That transfer should be exclusive to the client to avoid inadvertently mixing up documents," he said. "I still feel this is a much better and more secure process than loose paper tax documents in a manila folder."

A secure portal also beats emailing documents directly to your preparer, since forms often include your Social Security number and other sensitive financial information.

Still, Cordes agreed that the responsibility ultimately falls on you. "It is the taxpayer's responsibility to make sure the return is as accurate as possible before filing," he said. So while you may want to rely on a professional, you still need to stay involved in the process - which is something you can discuss with your new tax preparer next year, if you decide to switch.

You can also join the Retirement conversation in our Facebook community: Retire Better with MarketWatch.

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More Fix My Portfolio

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-Beth Pinsker

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April 01, 2026 13:53 ET (17:53 GMT)

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