Conflict Disclosure Forms

[thomtax]

Can someone point me to a site where I can get sample disclosure forms for situations of two parties that have gotten divorced and both want you to prepare their return.

Thanks to all.
LT

[JG EA]

I wrote one up - very simple. I don't have it in front of me it is at the office, but I reference the section in Circular 230 and very briefly explain the possible conflict. (The only one I have is about preparing S-Corp and the individual's return. Place for them to sign and for me to sign. I have only single Shareholder S- Corps or Husband and Wife Shareholder S-Corps, but if H/W I have them both sign.)

[erchess]

Now I feel like a blockhead

Why is there a conflict of interest with your S Corp Situations?

In the case of my only S Corp I there are four shareholders. My client (the person who hired me and with whom I speak every time I speak to anyone with the company even if I also speak with others at the same time) is not an owner because of legal advice he has received. His wife and her two sons from a previous marriage are shareholders and there is an outside shareholder. I do the S Corp Return, the MFJ Individual Return for the man and his wife and the Individual Returns for the two sons. I perceive no conflict of interest because they all tell me that they want all the returns done correctly. Would anyone who thinks I am in error please say so? I can very easily get a document drawn up by the law firm I keep on retainer if anyone can hammer the need through my dense head.

What if I were to do two individual MFS Returns for a married couple? Conflict?

What if I were to do two returns for two unmarried people who share living space and perhaps a mortgage? What if there is the possibility of one claiming the other as an "other dependent" or one claiming HOH because of the other? Conflict?

I had always thought that in both situations as long as I sat down with all the affected individuals so that each knew what the other(s) had said to me and what I had said to them and everyone seemed to be happy when signing their returns and associated documents I was ok. On the other hand I know that I can be wrong and that things change.

[thomtax]

Thanks

JG - Thanks for your reply. My deal is for a divorced couple, friendly divorce at this time, only W2s and no question of custody of only child. I guess I am always looking for trouble, but think that if things turn unfriendly in the future, I don't want to give either of them someone to blame for anything. I drew up a form spelling out how conflict resolution would be handled, but thought maybe there was an ideal form somewhere.

erchess - I can't speak for JG EA but I am guessing that he is trying to prevent being a scapegoat if sometime in the future one of the parties becomes unhappy with something in the arrangement. It might even be personal in nature, but can spill over into business. You know today's attitudes - It's not my fault, so it must be yours. So, I'm going to sue everybody and everything.

LT

[JG EA]

Actually it was because of something I read. (Maybe on this board?) It would no doubt only apply if an S-Corp had several unrelated shareholders, but since this was in the Circular....

I know this goes against my war on not having extra things for the client's to sign, but somehow this one seems to make sense to me. I've had clients that had each entity done by a different preparer to avoid some kind of conflict.

[erchess]

I know a business (not clients but I patronize them) that has the book keeping done by one firm and the tax returns done by another firm and the owner has the tax preparing firm audit her books and the book keeping firm audit the tax return.