Is an accountant obligated to report unreported income to the IRS?
April 3, 2014 6:19 PM Subscribe
Is an accountant obligated to report unreported income to the IRS, if the conversation is not pertaining to the completion of my tax return?
posted by anonymous to Work & Money (4 answers total)
Soon I will be speaking with an accountant regarding my finances. This accountant is not helping me with my taxes at all (I already did them), just helping me to crunch some numbers regarding different employment/income scenarios for me. He was recommended to me by an artist friend of mine as someone who works with freelancers to help them with their finances. My main goal is to figure out how much I need to be earning given my various jobs in order to have enough take-home pay to afford a large raise in my rent.
Currently, 1/3 of my income is under-the-table paid childcare. I'm hoping to phase out of this job soon into more legitimate (i.e. taxed) work, but it will be a few months before that happens. SO, my question is, since this unreported income is a major part of my current finances, can I disclose it without risk? Is an accountant obligated by law to report someone's unreported income?