Did Your Previous CPA Retire? Here Is What to Do Next.

A CPA retirement is more disruptive than it appears. The relationship carries years of context — prior returns, depreciation schedules, carryover losses, entity elections, and an understanding of how your income and deductions interact. Most of that context is not in the files you receive. It is in the CPA's head.

When that relationship ends, the question is not just "who prepares my return next year." It is whether the incoming CPA can reconstruct enough context to continue the planning — not just the filing.

Step One: Get Your Records

Request your complete file from your prior CPA before they close their practice. What you need: the last three years of filed federal and California returns, all supporting workpapers (depreciation schedules, basis tracking, carryover schedules), any open IRS or FTB correspondence, copies of entity documents and elections (S-corp election letter, any 481(a) adjustments, grouping elections), and engagement letters for any pending work.

Some retiring CPAs organize this well and send files proactively. Others need to be asked specifically. Ask early — before the retirement date — because retrieving files from a closed practice is significantly harder.

Step Two: Understand What Was Happening Strategically

If you had a genuine advisory relationship, your prior CPA was making elections, structuring decisions, and planning moves that affect your taxes for years forward. Before the relationship ends, ask your CPA to document the key elections and ongoing strategies in plain language — not just in the workpapers.

Specific things to ask about: Are there suspended passive losses from rental properties? What is the current basis in any entities you own? Have any accounting method changes been made? Are there any open IRS or FTB examinations or correspondence? Is the S-corp election in place for any entities, and when was it filed?

Step Three: Find the Right Replacement

The replacement CPA needs to be able to handle the complexity of your situation — not just prepare a return. If your prior CPA was doing real estate tax planning, multi-entity coordination, or IRS representation, you need a replacement with those same capabilities.

Verifying a California CPA's license and standing is straightforward — the California Board of Accountancy maintains a public license lookup at search.dca.ca.gov. You can verify whether a CPA's license is active and in good standing in about two minutes.

The first meeting with a prospective CPA should include: a review of your prior returns to identify ongoing planning issues, a clear explanation of how the incoming CPA approaches the kind of situation you have, and a scoping of what the engagement will cover. A CPA who cannot articulate a planning approach in the first conversation — only preparation — may not be the right fit if your situation has complexity.

What to Watch for in the Prior Returns

When a new CPA reviews your prior returns, a few things commonly surface. Depreciation errors — where property was not properly classified or cost segregation was never done. Missing elections — where an S-corp election or grouping election was not made when it should have been. Missed deductions — where a legitimate deduction was overlooked or a carryover was not tracked correctly. Prior year errors that can be corrected — within the three-year statute of limitations on amended returns.

None of this reflects poorly on the prior CPA. Tax returns are complex and practice management is demanding. A fresh set of eyes on prior returns often finds something, and the value of finding and correcting errors within the limitation period can exceed the annual preparation fee.