is it okay to work with 2 spouses who are now divorced

Hi all,

I assisted a new client with an innocent spouse application recently.

Now, her ex husband just reached out to me for tax assistance.

Is there anything preventing me legally or ethically from working with both of these ex spouses ?

If not, I was thinking about just mentioning it to current client that her ex husband reached out for tax assistance and to see if she is comfortable with me also working with her ex husband.

The innocent spouse application was filed because a refund was garnished last year by IRS due to unreported income by ex husband on a previously filed married joint tax return that current client (ex wife) was not aware of.

Thank you as always.

My general rule is that they both agree that whatever I tell the one, I tell the other, and as long as we avoid a conflict, I'm in. In your case, I think you have inherent conflict between them. If she wins, he loses....but if both know and agree...

Thank you JR1 !

I have done this a number of times but without the innocent spouse twist. All parties knew what was going on. Often they were parenting children together. Some even came in together and have a goal of paying the least tax overall and dividing up the kids accordingly. At this point most of my clients are pensioners and have raised their children, gotten their divorces, and so on.

It is best to have them acknowledge in writing that a conflict of interest exists and they waive it.

A conflict of interest does not exist merely because two people were formerly married and are now divorced. If the tax treatment of one has no effect on the other then there is no conflict.

Perhaps not, but it would seem more prudent to assume there is a conflict of interest because of a divorce and get a waiver in writing. https://www.thetaxadviser.com/issues/20 ... p2010.html. It does not mean you have to refuse the engagement, just get a client sign off.

As a personal rule, I will not do both. I seal both files and have one spouse work with another preparer in my office. The only persons that can view their file is their preparer and themselves. I think it's important to the client to know that their preparer is acting in their best interest. Once I've explained my policy, I've never had anyone get upset.

If I did not have the policy, I would certainly require a conflict of interest waiver... then I would worry how effective that would be.

Fresh divorsees are my least favorite type of client.