How do I switch accountants, and when is the best time?

Why so many people are looking

We get these calls all the time. The accountant retired, sold the practice to a firm the client never chose, or simply stopped returning calls and emails. Often the client finds out in March, when the documents are ready and nobody answers.

Fewer people are entering the profession to replace them. The AICPA’s 2025 Trends report counted 55,152 accounting bachelor’s and master’s degrees awarded in the 2023–2024 school year, down 6.6% from the year before, after a 9.6% drop the year before that. Enrollment has started to rise again, but those students are years away from signing tax returns.

What to ask your old accountant for

• Complete copies of your returns for at least the last three years, federal and state, with every schedule and statement, not just the summary pages.
• Depreciation schedules for every rental property, vehicle and piece of equipment.
• Carryforward worksheets for capital losses, passive activity losses, net operating losses and charitable contributions. None of these appear on a W-2 or 1099.
• S Corporation basis records. Shareholders file Form 7203 when they claim a loss, receive a nondividend distribution, sell stock or are repaid a loan. Basis is tracked year to year, and it starts from the old file.
• New Jersey and New York returns, including any credits or overpayments carried forward.
• For a business: the general ledger, year-end adjusting entries, payroll and sales tax filings, and the final balance sheet.
• Any open IRS or state notices, and what was sent in reply.

You do not need anyone’s permission to switch. Your returns and the records you gave your accountant are yours. Ask in writing, keep it short, and keep a copy.

A worked example: one lost file

William’s accountant retired. His new preparer works only from the W-2s and 1099s William sends, and never sees the old file. Two items lived only there: a $27,000 capital loss carryforward, and the depreciation schedule for a rental condo, with a building cost of $275,000 depreciated over 27.5 years. William and his wife file jointly, in the 24% bracket, which for 2026 covers taxable income from $211,400 to $403,550.

Without capital gains to absorb it, the carryforward offsets $3,000 of other income a year, which makes $27,000 last nine years. Both items can be fixed on amended returns for years that are still open. The depreciation is the worse trap. The IRS reduces the condo’s basis by the depreciation William was allowed, whether or not he claimed it, so when he sells, the gain is figured as if he had taken the deductions he never got.

If your old accountant does not respond

• Get your IRS transcripts. Your IRS Online Account lets you view, print or download your transcripts for free. A transcript is not a copy of your return. It shows the numbers the IRS has, not the worksheets behind them. A copy of the return itself is requested on Form 4506.
• Authorize your new CPA. Form 8821 lets your new CPA receive your tax information from the IRS. Form 2848 also lets them represent you, which matters if a notice is open.
• Rebuild what is missing. Depreciation can be rebuilt from closing statements and purchase records, and carryforwards from the prior returns that show them.

When to switch

• Before January is best. Your new CPA has time to review last year’s return and send a checklist before your documents arrive.
• Mid-year is fine. It is a good time to check estimated payments and run a projection before the year closes.
• On extension is fine. Individual returns on extension are due October 15, and S Corporation and Partnership returns September 15. A new CPA can pick up an extended return and file it by that date. The tax was still due on the original date, and anything unpaid keeps building penalties and interest until it is paid.
• In the middle of a notice. Switch, and sign a Form 2848 so your new CPA can answer the IRS directly.

Red flags: switch now

• A missed deadline, or an extension that was never filed.
• IRS or New Jersey notices that went unanswered.
• No response for weeks, especially between January and April.
• No clear answer on whether your return was filed.
• Reluctance to hand over your own records.

For what to look for in the next CPA, see our guide to choosing a CPA in Bergen County.

This guide is general information based on the law as of the date above, not advice for your situation. Tax rules change, and the right answer depends on your numbers.