Ethics Question

[erchess]

I am about to commence representation of a couple that is being audited for 2006 for which they filed a joint return even though nearly all of the income was hubby's. They are now separated and she lives out of state. Everything he has said has indicated that he plans to pay all of the TPI coming out of the audit. How strongly should I urge her to obtain separate representation? Can I represent both if they both agree? If I do represent both can I do an Injured Spouse for her while still representing him?

If I represent both I know I need a waiver of the conflict of interest. Does anyone have the legal language for this?

[ChEAr$]

I am about to commence representation of a couple that is being audited for 2006 for which they filed a joint return even though nearly all of the income was hubby's. They are now separated and she lives out of state. Everything he has said has indicated that he plans to pay all of the TPI coming out of the audit. How strongly should I urge her to obtain separate representation? Can I represent both if they both agree? If I do represent both can I do an Injured Spouse for her while still representing him?

If I represent both I know I need a waiver of the conflict of interest. Does anyone have the legal language for this?

I see no reason you can't represent them on a joint return with a properly executed POA signed by both. After all, she may not have gotten the notice and may not even know.
Be sure she does. And you suggested above that she knows.

But as for innocent (not injured) spouse rep that's a whole nother ball game. Play it by
ear, and make sure she knows full implications with possible tax impact (do a 1040x for your own information) and is comfortable with it.

But the first hint of trouble,you have to make a decision.