About half of American wage earners this tax season will hire someone to prepare their returns for them. But what many don't know is that the competency and honesty of commercial tax preparers vary widely.

Aside from certified public accountants who must pass a rigorous exam, only Oregon and California require tax preparers to pass any test or hold a license. Most states set higher standards for beauticians or locksmiths, although the person figuring your taxes has access to bank account and Social Security numbers. They also can cost a client fines or even jail time for shoddy or fraudulent work. Regardless of who prepares a return, the person who signs it is legally responsible for the information it contains - not the preparer.

Most tax preparers are honest and ethical. But a few manipulate returns to generate higher fees, engage in identity theft or prey upon the elderly, immigrants and the poor. Even at major companies, preparers often work on returns after only a few months of training.

Investigators posing as customers recently found “a shocking lack of knowledge” about basic tax issues and “bad advice” that could get taxpayers in trouble. As a start, Congress needs to pass legislation prohibiting tax preparers from disclosing clients' confidential information for any reason. Better yet, Congress should simplify the tax code, making it easy for individuals to file their own returns.

The industry also needs to police itself, establishing training and ethical standards along with a certification process the public can rely on. If it won't act, more states need to set up licensing programs or the Internal Revenue Service should force preparers to pass a test.

Taxpayers should be wary of commercial preparers who base fees on refunds; want you to sign a blank return; claim they can get a much bigger return than last year; try to deduct things like dry cleaning, cable TV and vacation expenses; or have your refund check sent to them.

And remember to carefully check the return before signing it.

- The Indianapolis Star