Signatures blacked out

[Burke]

Yes, he could order a copy of prior tax returns to get this information but I don't think he knows that (most people don't). .

Most people go to their tax preparer first for copies. And if you have been filing these people MFJ for years, then that person is you. And you would be obligated to give him such a copy (for a fee.)

[Rapid Robert]

When signing a tax return, including a 8879, they are saying "I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete". They can't do that if there are items that are blacked out.

I see "blacking out" and "masking all but last 4 digits" as two different things. It turns out, I never give my clients an unmasked copy of their return: the SSNs, DOBs, and bank info are always masked (last 4 digits still show, for rough verification).

The Form 8879 that they sign for me is is not masked, however. It's their choice if they want to keep a copy of that when e-signing.

I don't lose any sleep over it, been doing it this way for almost a decade (when I first started doing mostly remote tax prep).

[TAXNJ]

Yes, strange situation. I cannot imagine a spouse not knowing the others social security number but she says he has never known it. Yes, he could order a copy of prior tax returns to get this information but I don't think he knows that (most people don't). Apparently she has mostly handled financial matters and he hasn't paid attention. They are prior clients who have always filed MFJ until now. Advice on what is best is not really an issue. She has practically no income in 2019 so would have no refund filing by herself.

Some get educated real fast with a good attorney therefore he may find out can order prior returns.

So what is your decision?

[TaxGuyBill]

Personally, I wouldn't black anything out. If they want to conceal information, they need to file as MFS.

When signing a tax return, including a 8879, they are saying "I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete". They can't do that if there are items that are blacked out.

[Bonnie]

Yes, strange situation. I cannot imagine a spouse not knowing the others social security number but she says he has never known it. Yes, he could order a copy of prior tax returns to get this information but I don't think he knows that (most people don't). Apparently she has mostly handled financial matters and he hasn't paid attention. They are prior clients who have always filed MFJ until now. Advice on what is best is not really an issue. She has practically no income in 2019 so would have no refund filing by herself.

[Burke]

Rapid Robert's suggestion makes sense. Just prepare a separate his/hers Form 8879. That should fly and keep everyone happy.
QUERY: How can a TP **NOT** already know the Soc Sec number of a spouse and/or their dependents? ? ? ?

And if the TP does not know them, all he has to do is request a copy from the IRS of any joint return he/she has ever signed and they will send it to him/her. I am surmising that she does not want him to have the information in order to claim the dependents in the future. But as I said, that is a moot point. He can get them.

[Lion]

Talk to your E&O insurance provider. You can use masked numbers on client copies, but will need full numbers on government copies. Get those conflict of interest letters signed before doing anything with either. How can you advise one that he'll do better claiming all the children and filing HOH while advising the other that she'll do better filing MFJ, for instance? What if one will get a larger stimulus payment based on 2018, do you advise them to wait to file 2019?

[TAXNJ]

Strange request but wondering if anyone has ever had this same thing. Couple in midst of divorce and wanting to file MFJ. Separated for over half of 2019 but still married. I will be meeting with husband and wife separately to get signatures on 8879 and giving each of them a copy of the joint return. Wife requests that her and children's SS numbers be blacked out so he cannot see them on the paperwork because he does not know their SS numbers and she does not want him to have them. I'm trying to decide how to handle this and if it's even legal to give him a copy of tax paperwork with their numbers blacked out. What are other's thoughts?

Really think the questions for you to answer are: who are you representing if preparing a joint tax return - both parties? Are you showing preferential treatment for one and not the other party? Are you representing both parties that you have a contract with fairly and equally? Are you “knowingly and willing” withholding information from one party and not the other?


Strongly suggest you consult with your legal counsel before proceeding and, in addition, if you would be in compliance with Cir. 230.

[Rapid Robert]

What if you printed two identical Form 8879s, but on each one, blacked out one or the other of the spouse's SSN, so that each spouse only sees their SSN and signature? You would still have both spouse's signatures on a Form 8879 that is associated with a return that is true complete and accurate. The only thing missing would be each spouse having a signed copy of complete Form 8879. That is a risk I'd probably accept, if everything else about the return was straightforward (and with waiver of conflict of interest in place).

[RWG1950]

Can't address the legality of a preparer providing a customer a copy of a joint 2019 return that has the joint filer and dependent's SSN's blacked out,
but, whether they had previously filed MFJ or MFS, wouldn't he have already seen and / or at least have access to these numbers from a prior return ?

[Rapid Robert]

I suggest you get a "Notice of Actual Conflict of Interest and Conflict of Interest Waiver" form signed by both, if nothing else. Prior to this step you could also get a "Notice of Potential Conflict of Interest" sent to each party. In other words, first notify them of a potential conflict of interest, and then if one arises, get them to sign off on that.

I like the "last 4 digits" approach that Atsman suggested. That way, the tax return and Form 8879 will not include any of the dependents' full SSNs, but I think husband and wife filing MFJ are going to have to agree to know one another's SSNs. YMMV. If either spouse is concerned about fraudulent tax filings by the other, they can probably get an IP PIN (as can a large percent of the country, but some states cannot yet get IP PIN on demand). They would not have to share the IP PIN with each other, just with the tax preparer.

[ATSMAN]

Do they have legal representation or is this a DIY divorce situation. Anytime I am dealing with a divorcing couple that wants to file MFJ, I work with their attorney(s) and tell them what I need and they get the signed forms for me. A client copy of the tax forms may have only the last 4 digits of SS but the 8879 requires the full SS#, I think.

[Bonnie]

Strange request but wondering if anyone has ever had this same thing. Couple in midst of divorce and wanting to file MFJ. Separated for over half of 2019 but still married. I will be meeting with husband and wife separately to get signatures on 8879 and giving each of them a copy of the joint return. Wife requests that her and children's SS numbers be blacked out so he cannot see them on the paperwork because he does not know their SS numbers and she does not want him to have them. I'm trying to decide how to handle this and if it's even legal to give him a copy of tax paperwork with their numbers blacked out. What are other's thoughts?