Former Spouse requests copies of tax info

[SKJCPA]

A longtime tax client and wife divorced during 2007 tax year. He remains my client; she is not. She called me and is requesting copies of their 2005 and 2006 tax returns and W2's. What obligation do I have to her to provide these copies? And should I run this past my client first, that she has requested this information. I've never run across this situation before.

[ChEAr$]

obligation

A longtime tax client and wife divorced during 2007 tax year. He remains my client; she is not. She called me and is requesting copies of their 2005 and 2006 tax returns and W2's. What obligation do I have to her to provide these copies? And should I run this past my client first, that she has requested this information. I've never run across this situation before.

First of all you have no obligation atall to provide any copies. You do it out of the goodness of your heart. (grin)

of course you don't mind cooperating with her since these were joint returns (right?) You don't even need to tell your current client that you are providing copies of the returns and
copies of ONLY her W2 form(s). Note this qualification, since to provide a copy of his W2, or indeed any of his information, e.g. brokerage statements, 1099's, would (IMO) need his permission under the present day climate of disclosure mandates by IRS.

[WhiteOleander]

Why not give the copies? Subject to your policy for charging for copies.

I would provide copies of all relevant forms and evidence. If the spouse filed jointly, they can be held responsible for the taxes from the return. So, I would believe they are entitled to copies of the evidence used to prepare the return.

[BOB W]

Let's talk about the actual Authorization that they sign. Client calls (joint return) and asks me to fax a copy of their 2007 and 2006 tax return to a mortgage broker.

Does both H&W need to come into my office and sign the authorization? How else can the authorization get to me. Can it be faxed or can an email with the required info be sent to me?

Other than in-person, what proof do we need that the signatures are valid.

[DaveO]

Our policy is that husband and wife sign the authorization.

I would advise husband that ex-wife has requested copies and since they are joint years she is entitled to copies subject to standard copy fees.

[ChEAr$]

this is different case from OP.

Let's talk about the actual Authorization that they sign. Client calls (joint return) and asks me to fax a copy of their 2007 and 2006 tax return to a mortgage broker.

Does both H&W need to come into my office and sign the authorization? How else can the authorization get to me. Can it be faxed or can an email with the required info be sent to me?

Other than in-person, what proof do we need that the signatures are valid.

You need both signatures on the newly revised and mandated disclosure form which must
conform to certain requirements and contain certain stock paragraphs.

As for signature assurance in the case of not personally witnessing one spouse's signature, , I would simply compare signatures with those on last year's
form 8879 which we must retain for three years.

[ChEAr$]

As I said

Why not give the copies? Subject to your policy for charging for copies.

I would provide copies of all relevant forms and evidence. If the spouse filed jointly, they can be held responsible for the taxes from the return. So, I would believe they are entitled to copies of the evidence used to prepare the return.

Each of us may have our own policy about whether or not to provide copies, whether or
not we charge per page even. BUT I would not provide a copy of the other spouse's
original documents; only the requesting spouse's W2, 1099R, etc.

[BOB W]

Well>>>>> I am inclined to NOT deal with a 3rd party and require all clients to come to my office and pick up a copy (fees to be determined client by client). It seems like it would eliminate all the potential problems of "3rd party" issues.

To follow all the issues to cover one's butt would take longer than just printing a copy and give it directly to the client.

[FEDUKE404]

Same questions as before

We've been here before, less than a month ago........

http://www.thetaxbook.com/forums/showthread.php?t=10146

FE

[taxea]

I would say that now that they are divorced she is not entitled to any of his documents (W-2) etc but she is entitled to a copy of the forms of a MFJ return that were provided to the IRS.

Have her sign a waiver and charge her for the copies. I also believe that confidentiality prohibits you from discussing this with the ex husband. taxea