Harlan Lunsford <lunstax[at]bellsouth.net> wrote:

- quote -

It can sort of become your concern when one or both come
back and ask you to prepare a separate return. <g> Then
you're left in a potentially sticky mess because you are in
possession of information furnished by the OTHER spouse with
an expectation that a joint return would be filed. Can you
safely use that information with respect to a separate
return without the other spouse's knowledge or consent?
(Fortunately, I've never been officially pursued by the
"other" spouse in a situation like this, but there have been
veiled threats and I've often lost sleep over it.)

- quote -

I hear ya'! I've often thought my "default" approach should
be to tell BOTH to get lost until after the divorce is
final.

MTW

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- quote -

We had clients who separated early in the year a couple of
years ago. They agreed to file MFJ for the year prior to
their separation. By the time the next year rolled around,
we notified them that we we would not do any returns for
them, personal or corporate, until the divorce was final.
Things were finally settled but the hostility they had for
each other came through when they talked to us. We finally
told them we wouldn't do returns for either of them at all.

Carol
What can one expect of a day that begins with getting out of bed.

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MTW wrote:
- quote -

Of course EVERY case depends on "facts and circumstances"
(God, I love that term!)

So I should add that I have to be 99% sure that they'll
still agree to sign before I prepare. However, still, I
just prepare the return when they WANT me to prepare the
return. And that's understood. Never had a case of refusal
to sign, not that's that my concern anyway.

- quote -

One size never fits all. there have been cases when I
didn't want to touch EITHER return.

Cheer$$,
Harlan Lunsford, EA n LA
T minus 7 and counting..............

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Harlan Lunsford <lunstax[at]bellsouth.net> wrote:

- quote -

I'm not so sure about that. There is still lots of room for
one spouse or the other to claim that they got a raw deal,
and that you didn't adequately disclose the circumstances.
Plus, in a fair number of cases where I have prepared a
joint return for a divorcing couple, one spouse or the other
eventually refuses to sign it in spite any prior agreement
to do so.

I wish there was a "good" way to handle divorcing clients,
but there just doesn't seem to be. These days I lean very
much in the "old school" direction. That is, you pick ONE
spouse and you prepare a separate return for them. Period.

MTW

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BM30003700 <bm30003700[at]aol.com> wrote:

- quote -

I'm not sure that it really makes any difference as far as
the IRS is concerned, but I have often filed "separate"
extensions in this case.

MTW

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BM30003700 wrote:

Incidentally, what does the BM30003700 stand for? a CPA
registration number? It's not an EA # I'm sure.

- quote -

If both agree to file a joint return, the preparer has no
conflict of interest. He prepares it and shows both what's
in it and how it's prepared. He then collects his fee,
releases the return for them to sign and mail; or not sign
and throw away. Job's done.

- quote -

If a joint return, he doesn't have to represent either or
both from that time forward.

- quote -

Not at the "very least", but has the duty to sit down face
to face with both ... and....

- quote -

Yes, show both possibilities, even calculating each's
separate refund if MFS.

make a recommendation,

No. I simply show the facts and they make the decision.

- quote -

Again, representation doesn't come into play at this point.
BTW, who told you all this, anyway? a lawyer? (gasp!

- quote -

To make a long story short, if an extension is warranted,
then two extensions should be prepared.

If they later decide to reconcile, or file jointly, no harm
done.

BTW, I'm expecting my perennial fighting couple in next
week. they're not divorced yet! lol

Cheer$$,
Harlan Lunsford, EA n LA

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BM30003700 wrote:

- quote -

Prepare one extension for the husband and a second, separate
extension for the wife. IMHO, if they're still
contemplating filing jointly, they're both your client
(because in a joint return situation, they're both your
client).

Phoebe

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- quote -

We have several clients who have gone through a divorce. It
does create headaches for us, some of which we have yet to
recover from. What we generally do, if an extension is in
order, is to file a MFJ extension and then let them decide
how they want to file and based upon that, decide which one,
if either, we will prepare returns for. We had an amicably
divorcing couple who *both* wanted us to do their returns
and we did so. We also had a couple who had a very nasty
divorce, both wanted us to do returns for them but we sent
both on their merry way. I think the key is how they get
along with each other. Most of our clients are small
business owners and that may make a difference.

Carol
What can one expect of a day that begins with getting out of bed.

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I've been told that, when preparing a joing return for two
people who are getting divorced, a conflict of interest is
possible.

Further, I was told that, in such a situation, the
practitioner should decide which of the two persons the
practitioner wishes to represent.

I was also told that to prevent conflict of interest, the
practioner should then, at the very least, talk with the two
persons together, show them what two returns filing married
filing separate look like, in addition to showing them what
a jointly filed return looks like, make a recommendation,
and tell the person not represented by the practitioner that
the practitioner is representing the other person, and that
the person not represented by the practitioner should seek
their own independent counsel.

Having said that, what do I do when a divorcing couple wish
to file for an extension? Does the extension permit them to
file either MFS or MFJ by the extended due date? Couldn't
filing an extension create a bias for the client not
represented by the practioner to file MFJ?. For example, if
the client not represented by the practitioner would owe a
late payment penalty filing a MFS return by the due date,
but no penalty by filing a MFJ return by the due date,
hasn't the practioner created a bias by filing an extension,
unless the extension permits them to file eithe MFS or MFJ?

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