To change accountants, review the termination clause in your current engagement letter, time the switch between filing seasons, send written notice, revoke any IRS authorizations your old accountant held, and coordinate the transfer of records and software access to the new firm. Done in that order, the handoff takes a few weeks and avoids splitting a tax year between two providers.
Start With Your Engagement Letter
Your engagement letter is the contract that governs the relationship, and the termination clause tells you how to end it cleanly. Look for the required notice period, whether notice must be in writing, any early-termination fees, and provisions for billing unbilled hours or charging administrative costs to close your file and export data. Knowing these terms up front prevents surprises on the final invoice.
Records are the other question the letter and professional rules address. Under the AICPA Code of Professional Conduct’s Records Requests interpretation, accountants must return client-provided records, meaning the original source documents, receipts, and similar items you gave the firm. The firm’s own internal work product, such as planning memos and internal analyses, generally belongs to the firm.1AICPA & CIMA. Revised Records Requests Interpretation (ET sec. 1.400.200) Under the Acts Discreditable Rule (ET sec. 1.400.001) Whether a firm can hold records over unpaid fees depends on state law, so pay any outstanding balance before requesting your files.
Time the Switch Around Your Filing Deadlines
The cleanest window is after your current year’s returns are filed and before next year’s planning starts. For calendar-year filers, that usually means late spring through summer. Moving at that point avoids handing your new accountant a partially closed year to reconstruct.
Plan around the federal deadlines that apply to you:
- S-corporations and partnerships: March 15 for calendar-year filers (Forms 1120-S and 1065).2Internal Revenue Service. Starting or Ending a Business
- C-corporations: the 15th day of the fourth month after the tax year ends, which is April 15 for calendar-year filers.3Internal Revenue Service. Publication 509 (2026), Tax Calendars
- Individuals: April 15, 2026, for the 2025 tax year.4Internal Revenue Service. When to File
If a deadline falls on a weekend or legal holiday, it moves to the next business day.
One caveat on timing: avoid switching during an active IRS audit or state tax investigation. Changing representation mid-audit creates communication gaps with the examining agent and complicates the handoff of correspondence. If a switch during an audit is unavoidable, make sure the outgoing accountant archives all IRS correspondence before leaving.
File an Extension if You Are Close to a Deadline
If the switch lands near a filing date, an extension gives the new accountant room to work. Individuals can file Form 4868 for an automatic extension to October 15, though any tax owed is still due by April 15. Form 4868 can be filed electronically, through IRS Free File, or by mail.5Internal Revenue Service. Get an Extension to File Your Tax Return Businesses use Form 7004 for a similar automatic extension. An extension pushes the filing deadline, not the payment deadline.
Gather the Records the New Firm Will Need
The IRS recommends keeping tax records for at least three years from the filing date, which is why three years of returns is the standard starting point for a new accountant.6Internal Revenue Service. How Long Should I Keep Records Pull these together before the first meeting:
- Filed tax returns from the last three years, including all supporting schedules. That means Form 1040 for individuals, Form 1120-S for S-corporations, Form 1065 for partnerships, or Form 1120 for C-corporations.
- General ledgers, bank reconciliations, and trial balances from your accounting software.
- Fixed asset listings and depreciation schedules, which the new accountant needs to calculate future deductions correctly.
- Quarterly payroll reports and year-end wage statements if you have employees.
Having these ready keeps the onboarding from stretching out while your new accountant chases documents piecemeal.
Send Written Termination Notice
Send the termination notice in writing, using certified mail or a secure electronic method that timestamps the delivery. State your intent to end the relationship and the effective date. Keep it short; you do not need to explain why you are leaving.
The outgoing firm will typically respond with a disengagement letter confirming that its responsibility for your future filings has ended and listing any pending deadlines you now need to handle yourself or with the new firm. If the outgoing firm held power of attorney to represent you before the IRS, the disengagement letter should note the firm’s intent to withdraw that authority. Read it carefully so nothing slips through.
Expect a final invoice for unbilled work or file-closing costs. Pay it promptly; some states allow firms to delay releasing records when fees are outstanding.
Update Your IRS Authorizations
What you file with the IRS depends on what authority your previous accountant held. If the old firm only prepared returns and held no formal IRS authorization, you do not need to notify the IRS at all. Just begin working with the new accountant.
If your previous accountant had a power of attorney on Form 2848, you need to revoke it. There are two ways:7Internal Revenue Service. Power of Attorney and Other Authorizations
- File a new Form 2848 naming your new representative. A new authorization automatically revokes the prior one for the same tax matters and periods. This is the simplest route when a new accountant is already lined up.
- Send a standalone revocation. Write “REVOKE” across the top of the original Form 2848, sign and date it, and mail or fax it to the IRS. If you do not have a copy of the original form, send a signed statement listing the representative’s name, the tax matters, and the years being revoked.8Internal Revenue Service. Instructions for Form 2848, Power of Attorney and Declaration of Representative
If the new accountant only needs to view your tax information rather than represent you before the IRS, use Form 8821 (Tax Information Authorization) instead. Form 8821 lets the designated firm inspect and receive your confidential tax information for the years you specify, but does not grant the right to represent you in dealings with the IRS.9Internal Revenue Service. About Form 8821, Tax Information Authorization
Transfer Records and Software Access
Your new accountant will contact the outgoing firm to request work papers and files. You will need to sign a records release authorization, a written consent that lets the old firm share your financial information with the new one. It is not an IRS form; the outgoing firm typically provides its own letter or form for your signature. The authorization protects the outgoing accountant from liability for releasing your private data.
Most firms move records through secure cloud portals or encrypted files. The new accountant will confirm that general ledger exports and trial balances match your most recently filed returns, verify historical cost basis in assets, and review any carryforward losses or credits. Once everything checks out, the new relationship formally begins.
Cleanup work can add to the bill. If the outgoing firm’s records are disorganized, or if entries need to be reconstructed, expect additional fees. Ask about the scope of any cleanup up front to avoid billing surprises.
Software and Cloud Access
If your outgoing accountant managed your accounting software subscription, make sure you keep access to your own data. Problems usually surface when the firm held the primary admin role or controlled billing.
In QuickBooks Online, the primary admin of a company file can transfer that role back to the client, who then receives an email link to accept it.10Intuit. Transfer Primary Admin Access Back to Your QuickBooks Online Client If the old firm was paying for your subscription through a wholesale billing program, you will need to take over billing yourself or have the new accountant add you to theirs. Subscriptions on annual billing may need to switch to monthly billing before a transfer can happen.11Intuit. Transfer Clients to Your ProAdvisor Preferred Pricing Program in QuickBooks Online
Beyond the accounting software itself, walk through every shared access point: cloud storage, payroll services, and bank feeds connected to your accounting platform. Remove the old firm from each and add the new one. A forgotten bank feed can leave a former accountant with ongoing access to sensitive financial data.
Verify the New Accountant Before You Sign
Before signing the new engagement letter, confirm the accountant’s credentials. NASBA (the National Association of State Boards of Accountancy) maintains CPAverify, a free national database populated with official licensing data sent directly from state boards of accountancy. You can search by name and jurisdiction to confirm active license status and check for enforcement or disciplinary actions. It is the only free, single-source national lookup tool of its kind and covers all U.S. jurisdictions.
If the new preparer is an enrolled agent rather than a CPA, verify them through the IRS directory of enrolled agents. For non-credentialed preparers, use the IRS Return Preparer Office directory. A few minutes of verification before a records transfer is far easier than untangling a problem after the fact.