To report an accountant for misconduct, file a complaint with the state board of accountancy in the state where the accountant is licensed, and if the problem involves a federal tax return, also file IRS Form 14157 with the IRS Return Preparer Office. If the accountant stole money or committed fraud, report it to law enforcement as well, because regulatory bodies impose professional discipline; they do not prosecute crimes and they do not recover your money.
Which agency you file with depends on what the accountant did and what credentials they hold. Filing in the wrong place wastes months. Filing in only one place when you should have filed in two or three leaves outcomes on the table you cannot get back later.
Confirm Whether the Accountant Is Actually Licensed
Before you file anything, check whether the person is a licensed CPA. Jurisdiction depends on it. A licensed CPA answers to a state board of accountancy. An unlicensed bookkeeper or tax preparer does not, and a complaint sent to a state board about someone the board doesn’t regulate goes nowhere.
The fastest check is CPAverify.org, a free national database maintained by the National Association of State Boards of Accountancy. It draws official licensing data from 53 participating jurisdictions, and you can search by name or license number to see current status in every state where the person holds a credential.1NASBA National Association of State Boards of Accountancy. All About CPAverify If the accountant isn’t in the database, they may not be a CPA at all, which changes your entire reporting strategy.
For paid tax preparers, you can also check whether the person has an active Preparer Tax Identification Number (PTIN). Preparing returns for pay without a valid PTIN is itself an IRS violation, and the IRS accepts complaints about it through Form 14157.2Internal Revenue Service. Form 14157 – Return Preparer Complaint
Gather Your Documentation First
A vague complaint gets dismissed at the initial screening. A specific one, with names, dates, dollar figures, and paper backing every claim, moves forward. Before you contact any agency, put together a file:
- The accountant’s full name, firm name, business address, and license number or PTIN.
- Engagement letters or contracts defining the scope of work.
- Emails, letters, text messages, and dated notes from phone calls, arranged in order.
- The tax returns, bank statements, or financial reports at the center of the dispute.
- Evidence of harm: IRS penalty notices, amended returns, bank statements showing unauthorized transfers, or a calculation of your losses.
- A written narrative in chronological order, referencing your supporting documents by name.
Copy everything. Never send originals unless an agency specifically asks. For tax return disputes, request a transcript from the IRS and compare it against any copies the preparer gave you. Discrepancies between the two are among the strongest evidence you can put in front of an investigator.
Where to File, Based on What Happened
Different agencies handle different pieces, and they do not talk to each other on your behalf. In most serious cases, you should file with more than one. Below is where each type of misconduct belongs.
State Board of Accountancy: For Licensed CPAs
The state board where the CPA is licensed is the primary regulator. Boards investigate complaints, hold disciplinary hearings, and impose sanctions from private reprimand through fines, mandatory continuing education, suspension, and permanent revocation of the license.
Go to the website of the relevant state board. Most provide a downloadable complaint form or an online portal. Some require the complaint to be notarized or submitted as a sworn statement, so read the instructions before you send anything. If the CPA holds licenses in more than one state, you generally need to file separately with each board.
State boards cannot order the accountant to pay you back. Their fines go to the state, not to you. If you need money, that is a separate civil case.
IRS Return Preparer Office: For Federal Tax Return Problems
For misconduct on a federal tax return, file IRS Form 14157, “Return Preparer Complaint.” It covers a wide range of problems: stealing or redirecting refunds, filing returns without your knowledge, claiming false deductions, refusing to give you copies, and misrepresenting credentials.2Internal Revenue Service. Form 14157 – Return Preparer Complaint
If the preparer filed or altered a return without your consent, or committed fraud that affected your tax account directly, also fill out Form 14157-A, the “Tax Return Preparer Fraud or Misconduct Affidavit,” and submit it with Form 14157. If you received an IRS notice or letter about the issue, mail both forms plus the notice to the address on that letter. Otherwise, send both forms to the IRS Return Preparer Office in Atlanta.3Internal Revenue Service. Make a Complaint About a Tax Return Preparer
You have three submission routes: online through the IRS website, by fax to 855-889-7957, or by mail to the IRS Return Preparer Office at 401 W. Peachtree Street NW, Mail Stop 421-D, Atlanta, GA 30308.3Internal Revenue Service. Make a Complaint About a Tax Return Preparer
One deadline to know: the IRS generally treats federal tax complaints older than three years as non-actionable. If your situation is older than that and you are currently under audit or investigation, share what you know about the preparer directly with the auditor or investigator on your case.3Internal Revenue Service. Make a Complaint About a Tax Return Preparer
IRS Office of Professional Responsibility: For Practitioners Who Represent You Before the IRS
The IRS Office of Professional Responsibility (OPR) is a separate body from the Return Preparer Office. It has exclusive authority over the conduct of tax practitioners who represent clients before the IRS: attorneys, CPAs, enrolled agents, and enrolled actuaries. It enforces Treasury Department Circular 230.4Internal Revenue Service. Office of Professional Responsibility and Circular 230
OPR sanctions include censure, suspension from practice before the IRS, permanent disbarment, and monetary penalties.5Internal Revenue Service. The Office of Professional Responsibility (OPR) at a Glance For a CPA or tax attorney, disbarment from practice before the IRS is career-ending. Filing Form 14157 can trigger an OPR referral, but you can also contact the OPR directly through the IRS website.
AICPA Professional Ethics Division: For Additional Professional Consequences
The American Institute of Certified Public Accountants is a voluntary professional organization, not a licensing authority. Its discipline affects membership standing, not the state-issued license. Filing here makes sense when the accountant is an AICPA member and you want professional consequences on top of what the state board can impose.
To check membership, call 888-777-7077. Members can be reported through the AICPA’s online complaint form or by mail to the Professional Ethics Division in Durham, North Carolina. Staff conduct an initial review and, if warranted, investigate through the Joint Ethics Enforcement Program. Results generally remain confidential unless the matter reaches a hearing panel and the member is found guilty, in which case the outcome is published.6AICPA & CIMA. How to File an AICPA Ethics Complaint
PCAOB: For Audits of Publicly Traded Companies
If the misconduct involves the audit of a publicly traded company, the Public Company Accounting Oversight Board is the relevant federal authority. Its enforcement staff investigates violations of auditing standards and PCAOB rules.
You can submit a tip online, by email, by phone at 800-741-3158, or by mail. The PCAOB accepts anonymous tips but asks anonymous tipsters to make contact again within 24 hours so investigators can ask follow-up questions. Unlike the SEC whistleblower program, the PCAOB does not pay monetary awards.7Public Company Accounting Oversight Board (PCAOB). Tips and Referrals
Law Enforcement: For Theft, Embezzlement, and Fraud
Regulatory bodies discipline professionals. They do not prosecute crimes. If the accountant stole money, committed identity theft, or engaged in financial fraud, report it separately to law enforcement. A common and costly assumption is that filing a board complaint puts the criminal side in motion. It does not.
For embezzlement or fraud, start with your local police, even if the amount seems small. The report creates an official record that strengthens any civil claim later. For larger schemes or fraud that crosses state lines, the FBI accepts tips at tips.fbi.gov. Internet-based fraud can be reported at ic3.gov.8Federal Bureau of Investigation. White-Collar Crime
What Happens After You File
Regulatory investigations move in months, not weeks. First comes screening: agency staff confirm they have jurisdiction and that your allegations, if proven, would violate professional standards. Complaints that fall outside the agency’s authority or lack enough factual detail are dismissed at this stage. Dismissal at screening usually means the agency wasn’t the right one, or the file needs more documentation, not that your account is wrong.
If the complaint clears screening, a formal investigation opens. The accountant is notified, sent a copy of the complaint, and asked to respond in writing. Investigators may come back to you for more information. This is the longest phase, because investigators carry many cases at once.
The case then goes to a disciplinary committee or the full board. Possible outcomes:
- Dismissal for insufficient evidence.
- Private warning or public reprimand.
- Monetary fines, with amounts varying widely by state and severity.
- Mandatory continuing education.
- Suspension or permanent revocation of the license.
You will typically be notified of the outcome. How much detail an agency shares with the complainant varies. Some send a full written decision; others report only the final result.
Getting Your Money Back
A regulatory complaint disciplines the accountant. It almost never puts money back in your pocket. State board fines are payable to the state, not to you. To recover financial losses, you need a separate civil lawsuit.
Accounting malpractice claims usually rest on one of two theories. A negligence claim requires showing that the accountant owed you a duty of professional care, breached it by falling below the standard expected of a competent accountant, and caused your financial harm through that breach. A breach of contract claim requires showing there was an agreement for services, the accountant failed to deliver what was promised, and that failure caused you measurable damages.
Statutes of limitations vary significantly by state and by claim type. Negligence deadlines range from one to six years. Contract-based claims generally allow longer, often three to six years, and a few states go as long as ten or fifteen years for claims based on written contracts. Depending on the state’s rules, the clock may start when the misconduct occurred or when you discovered it. Waiting too long to consult an attorney is one of the most common and most preventable mistakes in these cases.
For smaller losses, small claims court may work. Maximum amounts generally run from around $5,000 to $12,500, depending on the state. Check your engagement letter before filing anything. Many accounting firms include mandatory arbitration clauses that force disputes out of court and into private arbitration.
If You Are an Employee Reporting Your Own Employer
Reporting fraud you discover inside your own company adds a layer: the risk of retaliation. Federal law gives specific protections depending on where you work and what you report.
Employees of publicly traded companies are protected under 18 U.S.C. 1514A from being fired, demoted, suspended, threatened, or harassed for reporting conduct they reasonably believe violates federal securities or anti-fraud laws. The protection covers reports to federal regulators, law enforcement, members of Congress, or a supervisor inside the company.9Office of the Law Revision Counsel. 18 USC 1514A – Civil Action to Protect Against Retaliation in Fraud Cases
If your employer retaliates, you file a complaint with the Department of Labor. If the Department has not issued a final decision within 180 days, you can bring your own lawsuit in federal court. Remedies include reinstatement, back pay with interest, and compensation for litigation costs and attorney fees. The deadline is strict: you must file within 180 days of the retaliation or of becoming aware of it. These rights cannot be waived through an employment agreement or a pre-dispute arbitration clause.9Office of the Law Revision Counsel. 18 USC 1514A – Civil Action to Protect Against Retaliation in Fraud Cases
If the fraud involves securities law violations, the SEC’s whistleblower program adds a financial incentive. When you provide original information that leads to an SEC enforcement action recovering more than $1 million in sanctions, you are eligible for an award of 10% to 30% of the amount collected.10SEC.gov. Whistleblower Program The SEC has paid hundreds of millions of dollars to whistleblowers since the program began. Awards require information that is specific, timely, and credible, not a general suspicion that something is off.