How to change CPAs before the 2027 filing season

Owners tend to stay with an accountant they have outgrown because the switch feels complicated and the timing never seems right. The switch is not complicated. The timing genuinely matters.

Move in the fall, not the spring

The best window to change is roughly September through December. Nobody is against a deadline, a new preparer has time to read your history properly, and a fourth-quarter projection can still be run before the year closes.

The worst window is February and March. Every firm is at capacity, a new preparer is reading three years of history under time pressure, and the realistic outcome is an extension. An extension is not a failure, but it is a worse first year than it needed to be.

For the 2026 tax year, the entity return is due Monday, March 15, 2027 and the personal return Thursday, April 15, 2027. Working backward, a new preparer wants your documents well before the end of January, which means the relationship should be in place in the fall.

You do not owe an explanation

There is no requirement to tell your current accountant why you are leaving, and no requirement to have a reason they would accept. A short note is sufficient. Most firms handle this professionally because most of them have been on both sides of it.

It is also normal for a new CPA to send a professional courtesy letter to the prior firm. This is a customary communication confirming the change and requesting records. It is a courtesy, not a request for permission.

Collect these documents, in this order

This is the part that actually determines how smoothly the transition goes. The first five items matter most, because they carry history that cannot be recreated from a bank statement.

• Prior year tax returns, three years if available. Federal and state, business and personal, complete with all schedules rather than a summary page.
• The depreciation schedule. This is the one people forget. It carries asset cost, in-service dates, method, life, prior depreciation, and remaining basis. Rebuilding it from purchase records is slow and imprecise.
• Shareholder or partner basis schedules for an S corporation or partnership, including any Forms 7203 filed.
• Carryforwards. Net operating losses, passive activity losses, capital losses, credits, and state-specific carryforwards.
• Any elections on file. The S election acceptance letter, accounting method elections, and similar.
• Payroll reports for the current year, including Forms 941, 940, W-2s, W-3, and state withholding and unemployment filings.
• Accounting file access, typically a QuickBooks Online user invitation or a desktop backup file.
• Estimated payments made for the current year, with dates and confirmation numbers.
• Recent IRS or state correspondence, including anything that looks unresolved.
• Entity documents: EIN letter, operating agreement or bylaws, state registration.

What a former CPA has to give back

The distinction that causes most of the friction is between your records and their work product.

Client records are the documents you provided: receipts, bank statements, accounting files you own, and similar. These are yours and must be returned. Client work product generally means the completed returns and the schedules supporting them. Professional standards under AICPA Rule 1.400.200 require these to be provided on request, though a firm may withhold work product where fees for that work remain unpaid.

Preparer working papers, meaning internal review notes, analysis, and the firm's own documentation, generally belong to the firm and do not have to be turned over.

The practical takeaway: settle any outstanding invoice before requesting files. It removes the only real leverage a departing relationship has, and it is far cheaper than the delay.

Authorizations, and why they differ

Two IRS forms come up, and they are not the same:

• Form 8821 is a tax information authorization. It allows a preparer to see your IRS account, transcripts, and notices. It does not allow them to speak for you.
• Form 2848 is a power of attorney. It allows a credentialed representative, meaning a CPA, enrolled agent, or attorney, to act on your behalf with the IRS, including in an examination.

For a routine transition, Form 8821 is usually sufficient and is worth filing early. Transcripts often resolve questions about prior payments, filings, and unresolved balances faster than asking the previous firm. Idaho and Montana have their own state authorization forms.

A workable sequence

• September or October. Talk to one or two candidates. Confirm license, scope, fee, and who does the work.
• On engagement. Sign the engagement letter, file Form 8821, and request records from the prior firm. Settle any open invoice.
• October or November. Run a projection for the current year while changes are still possible. Address estimated payments.
• December. Act on anything the projection surfaced. Confirm payroll items, including health insurance reporting on the W-2 for an S corporation owner.
• January. Books closed, portal access working, documents uploaded.
• February and March. The return gets prepared without anyone improvising.

None of these steps are difficult. They just cannot all be done in the same week in March, which is when most people start.