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Dear RitaB, Your intuition/memory is correct, to a point. Should you prepare the final 6/30/13 returns using 2012 software, you would have to do a lot of manual tweaking to make it good. Extending the return is not the best option, I believe; your shareholder(s)/client need a current-year K-1 -- under current law -- and, the entity should get this done by September 16, 2013 or, if extended, no later than *early* December, 2013 in order to get a *timely* "all clear" certificate from the state tax authority in which the entity is chartered, in order to include that certificate with its application to that state's Secretary of State for a formal dissolution notice. The SoS's with which I'm familar require such an "all clear" tax certificate -- and you can count on the SoS to take some weeks to finalize its own document. I also don't believe you should wait for ATX to issue 'solid' 2013 forms before New Year's Eve -- not only because ATX blew it, last year. Your client/shareholder(s) really don't have the option of waiting til next year; they really must report the entity's results within this year -- AND the entity must be dissolved by New Year's Eve, accordingly. If I were you, I would duplicate the 2012 return as "2013 [client]," and enter the current-year data. If your client's Fixed Assets are as numerous as I infer, you may need to convert the 2012 "4562 Statement" into an Excel spreadsheet, modify it to project the 2013 "short year" depreciation, and use the spreadsheet to inform a Form 4562 with your own totals -- also, to be attached as a Statement to the returns. Such a spreadsheet also will 'inform' the Form 4797 it sounds like you'll be filing. N.B. A current, short-year return cannot be e-filed. Do you have software capable of changing the tax forms' upper righthand corner "2012" into "2013"? You should do that; it's always helped keep things straight, in my experience. I.e., I just filed a client's final 2013 S-corp as I've described -- and have filed a dozen or so, this way, over the years. NO problems. VTY, TaxCPANY

I've had many "happily married" couples wanting to know how much is each ones claim to the refund or payment due. When you factor in the state, this is quite a task. The only "advice" I give is to tell them which one is having too much/too little withheld. As far as "splitting the refund", this is not my problem. As far as Taxed's comment about too much withholding in lieu of a bank account: I do tell them that they are giving the govt an interest free loan...but nowadays they aren't getting interest anyway at the bank. If it happens again...I don't comment. Just getting that big check makes some people happy...that they will have a lot of $$$ for something instead of drips and drabs that they will spend. Everyone has their own philosophy.... However, this is actually good for us....because they think we are so smart to get them huge refunds.

>>they should waive any conflict of interest.<< I disagree. It would be impossible to pull this off, because in order to obtain an informed waiver you would have to advise the clients of possible adverse consequences. There is simply no way for you to know what could come up in this hostile divorce! The CPA apparently has reason to believe one party is lying about income--how can you be fair to the other party if that turns out to be true? It can have major non-tax consequences such as family support and property division. In my opinion, the advice given to the clients in the original post was improper. Pick one side; don't get in the middle.