Competence: How Can You Tell Whether a Tax Professional Knows What They’re Doing?
Competence is not simply knowing a large number of tax rules. It includes identifying the real issue, asking the right questions, recognizing missing facts, researching uncertain areas, applying the law, and explaining the conclusion.
The 30-Second Answer
One of the best signs of competence may be hearing: “I want to research that before I give you an answer.”
Competence Starts With Facts
Tax answers are fact-dependent. Ownership, timing, entity type, documentation, prior elections, and state residence can all change the answer. A professional who asks follow-up questions is usually doing better work than one who gives an instant answer without enough facts.
Research Is Part of the Job
Good tax work can require the Internal Revenue Code, regulations, IRS guidance, court decisions, state authority, and professional research tools. “I have always done it this way” is not a research method.
Software Is a Tool, Not Judgment
Software can calculate and generate forms. It does not independently determine every legal or accounting fact, who owns an asset, whether a distribution occurred, whether a taxpayer materially participated, or whether an election is advisable.
Use the Explain-It-to-Me Test
Ask: What is the issue? What do you recommend? Why? What do I need to do? What happens if I do nothing? A competent professional should usually be able to make a material recommendation understandable.
Free Download
Use this worksheet or checklist alongside the guide.
Take the Next Step
Reviewed by Owen Arnoff, EA, NTPI Fellow
Reviewed: October 2026
Technical tax content is intended for general education. Tax law and procedures can change, and individual facts matter. See our Editorial Standards.