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I stopped preparing tax returns for family members and etc. I asked my daughters to find someone else. Last spring, I fired the young woman who used be our dog sitter because she emailed me bits and pieces, never had everything I needed to prepare her return. I decided I was happier not knowing their financial details.

We have had this client for many years. They are friends so I don't fire them...but I should...but my wife won't let me...so it is not going to happen. Never listen to my advice and warnings. Whatever....their personal problems become their tax problems, I can only tell them what they should do. We did their bookkeeping for several years for their SP business plus their personal tax return. At the beginning of 2022 they stopped sending their info and stopped answering our texts and emails. OK, so maybe they found someone local? Kinda happy about that because their issues put a strain on our relationship. Last night, my wife gets a text "We put everything in the mail today. Let us know if you have any questions." On Oct 3rd they sent via US Postal Service a full year of bookkeeping records to get done so the tax return can be completed by the 15th.... Not gonna happen. I can't fire them (because my wife...see above) but I can raise the price! Tom Longview, TX

I once caught a divorcing couple making out in my office. Never say never....

Forgettory! Excellent word. Mine is absent minded though, attributed to kids and grand kid taking my brain cells.

I totally agree with Catherine and Sara EA and highly recommend you take their advice. Trying to prep the returns for both spouses in a divorce presents a conflict which you cannot be part of. I don't think a conflict waiver would work for me in this situation either. Can't even see how it would apply. Again best advice, return their documents to them with a letter outlining the conflict and wash your hands of it.

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If the nonresidential portion is within the residential dwelling unit, then the exclusion applies to the entire gain except for any depreciation that was allowed. See reg 1.121-1(e) for details.

We had one "partnership" that put partners on payroll. Made the election to be treated as a C Corporation, and that ( a ) worked and ( b ) saved their bacon including late filing penalties, since C-corps don't send K-1s and get the individual deadline. (This may have been an April filing - long ago, don't recall, and don't recall off-hand if C-corps get extended to 10/16, either.)

Send the documents back to the person whose documents they are, with a "can't help, there is a conflict of interest" letter to each. If someone kvetches about it being last minute, you could probably say that "working together" has fallen apart and you cannot be in the middle. Nothing else; let the lawyers gripe at each other! If you really want to keep one of the two, tell that person you can complete their return as MFS but cannot discuss anything about the other spouse's situation, at all. If you don't have a well-enough-trained forgettery (opposite of memory) and recall info for the other spouse that will negatively impact your retained client, tell them you can only work for them as of next year. And make sure you get an engagement letter signed from whoever you do a return for. Always, always, always. There are specialty engagement letters available online just for divorce situations. Drake has a standard Eng Ltr as part of the program. The Tax Book has an Eng Ltr and also a Conflict of Interest Waiver, too, if you have a subscription to their book or online resources.

Sound like November clients to me, especially if they're getting a friends & family discount.

My sister-in-law is my very worst client. I love her dearly........I'll be getting her stuff Monday if I'm lucky.

A customer just asked me if we help prepare the x forms to retroactively claim ERC. They made a comment about how difficult the process is. I could not help myself, and pointed out how easy it was in real time.

Sounds like you will need to call the IP PIN help desk, with the client with you. At that time (once you have the PIN) you can ask how a return could have been filed for them without it. OTOH, if they can't find it - did a family member steal their info? Try to "help" by filing a return for them? A filed return with an IP PIN required is doubly suspicious.

I have paid for a customized WISP plan with someone who is also going to do IT support for me (which I've needed for a while). We just had a big long discussion about it all and I'm waiting for the plan to be sent to me. The discussion was very detailed and he brought up many items I would never have thought of. If anyone is interested, I've stated before I'll pass on his contact information. Send me a PM or an email. I have had one query from one of our colleagues here.

"Page Last Reviewed or Updated: 06-Sep-2023" https://www.irs.gov/tax-professionals/ptin-renewal-checklist-what-you-need-to-get-started

I'm in the middle of divorcing couple right now. And what should be very straightforward just gets messy with people. I don't know why you are afraid to ask if they have other income they are not claiming. You should always ask that question regardless of what they have given you. It should be outlined in the engagement letter that you should always make them sign. You have to be a hard-nose with divorcing people. As a rule of thumb - divorcing people should just file MFS. Don't even entertain the idea that they should be able to get along.

I agree, 3 years ago i terminated two long term clients who were legally separated at 12/31, when i discovered one spouse was not truthful. I mailed them each a letter along with their tax documents saying that I could not prepare their tax returns due to a "conflict of interest."

You have one spouse accusing the other of unreported income. You don't know if this is based on fact or supposition or which one is being less than truthful. Tell them to each find a new preparer because the IRS would consider it a conflict of interest if you prepared both their returns. No need for further explanation. Invite them to come back as clients when the divorce is fianalized.

I don't like divorcing couples. I try to run them off by telling them that I will not do their returns unless they can work together to get the best result for their overall tax situation. I tell them they need to agree which checking account the refund will go to (if there is one) and who is writing the check to pay the taxes if there is a balance due. I promise them that if they fight in my office I will hand all their documents back to them and not complete the return. So far it has worked. But I may just have been lucky. It is a conflict of interest trap to do MFJ for divorcing couples. It just can't turn out right. @GraceNY My first blush take is the estranged spouse is angling for an argument in court that the other spouse makes more and therefore the halves should be bigger. I would run from it. Hand them back their docs and say "sorry, I cannot help at this time". Send back a certified letter the the estranged spouse terminating the engagement, and CC the attorney. Tom Longview, TX

The only thing I know about ERC is all the calls and emails I've gotten telling me I'm eligible or offering to "help" my clients. I know all my clients; anyone eligible got sent in ages ago.

oh man.....my little town only has McD's and BK