Big rewards are given to whistleblowers to the IRS! Is your tax preparer a licensed CPA?

These are difficult times for Americans. Many have lost their jobs; some their homes; others are barely hanging on.

In order to save a penny, people go to retail outlets for the preparation of their tax returns, where tax returns are sometimes prepared by individuals with very little training: as little as 72 hours of classroom instruction. Some of these preparers have little, or no, college education.

Because many of these tax return preparers are not licensed CPAs, they themselves do not have an extremely valuable license to lose for fraud, breaching client-preparer confidentiality, or blowing the whistle on a client to collect a reward for doing such. In case you didn't know, the Internal Revenue Service pays a reward of 10% to individuals who report irregularities on the tax returns of others.

When one utilizes the services of a licensed Certified Public Accountant, one is ensured of that client confidentiality comparable to that which exists between an attorney and a client because a CPA can lose one's license for breaching professional ethics. Certified Public Accountants invest at least five years of college, years of service at public accounting firms, and thousands of hours and dollars in passing rigorous examinations and continuing professional education in order to obtain and maintain their licenses.

But what do unlicensed, disgruntled, underpaid employees--particularly those who have been terminated--have at risk personally for blowing the whistle on clients of retail outlets for the preparation of tax returns? In fact, they have much to gain, don't they?

Always weigh the costs and risks of making a decision regarding the preparation of your tax returns.

The Barefoot Accountant