A new tax professional should not treat last year’s return as a stack of numbers to copy forward. Prior returns are a map of elections, carryovers, basis, depreciation, state connections, and unresolved issues that can affect future years.
Carryforwards and elections
Capital losses, charitable carryovers, passive losses, net operating losses, depreciation methods, accounting methods, and prior elections can all affect the next return. Ask how the professional identifies and validates those items.
Basis and ownership
For businesses, partnerships, S corporations, investments, and inherited property, basis can control whether losses are deductible and how future sales are taxed. A professional should understand what is known, what is missing, and what needs reconstruction.
State history
Prior filings can reveal residency changes, multistate income, credits for taxes paid to other states, withholding patterns, and business registrations that deserve follow-up.
Open issues and notices
Ask whether there are unresolved IRS or state notices, amended returns, examinations, payment plans, or positions that could affect the current year.