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Never, ever, EVER give info to a third party without a properly signed Section 7216 disclosure authorization. There are TIGTA rules on paper size, font and font size, wording, etc. But acceptable samples are available online. Without that letter, I won't even confirm to a third party that the client IS my client. But easiest by far is to give it all to the client; then it's their lookout. Yes, if it's extra work for you, get paid up front. If they do need you to send (you have a fax that will handle 50 pages and they don't, for example), get that signed letter first.

I email it all to the client and tell them they can forward it

I haven't had any client who were divorcing and insisted on filing MFS. It rarely is beneficial to go that route. I doubt I'd do either return in that scenario and just let them walk. It's always amazing to me how often one will declare that they are working through the divorce amicably or post divorce they'll say they get along great. And then they take a deduction maybe they shouldn't have and you'd swear the shouting on the phone wasn't amicable.

I upload to FileShare on my website TO MY CLIENT and NOT to a third party for client to do whatever they want. With a partnership, I would direct the upload to the tax matters person and let your requester know he can get everything from his tax matters partner. I would give the tax matters partner a written estimate of the additional services requested and wait for a signed authorization to begin. (Maybe even wait for payment in advance now that it's tax season and I have other things to do.) This could all go away by the time you prepare projections, etc., and you won't get paid for your time!

I take the easiest position, choose one and not both. With that said, I have had divorced clients return to me after the divorce is settled and married filing separate is not an issue. However, I still approach this cautiously. Do what every you can at all times to CYA!!!

At the very least you need a broadly worded signed Financial Disclosure Authorization Form. If you are still uncomfortable, provide all the information to your client and let him pass it on to the third party. I had a similar situation years ago, where one of my clients was sold on a Consulting Engagement to improve his profits. The third party had their own authorization form which my client signed. I provided the information. Turned out to be a total waste of the $ 5,000 my client paid.

I have a policy that I will not prepare MFS for divorcing couples unless it makes more sense for lowering taxes. I sit them down and tell each of them that if they fight during the process I will not prepare either of their tax returns. I will prepare the return based on the information and whatever way works best to lower the overall tax bill is how I expect them to file. They tell me which account the refund gets deposited to and we go on our merry way. If they don't like my rules, they can go on their merry way. Tom Newark, CA

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Disagree!!! Never, ever, EVER give info to a third party is my policy. Period.

So I'm climbing out of the rabbit hole and saying, no, I don't have a written agreement for this. And we did not mean to ignore the original question, we're just excited. I am laughing so hard right now...

I'm going to respectfully disagree (with just about everybody I think). For me it's easier to do both returns or neither return when married people want to file separately. I really need to know that both didn't claim the same kid or both didn't claim 100% of the mortgage interest. I mean, IRS letters practically mail themselves when stupid crap happens. I'm going with both or neither.

It can still be dicey if there are kids and dependency exemption and child care and tuition involved. You can NOT do those returns without a chance of being caught - you can't, for example, TELL the second-to-come-in that the first already took the kids as dependents with a signed release that you now know the signature was cribbed. Because that is disclosing confidential information. So you're caught again. It could work if their lives are now totally separate (no kids, or kids long grown and gone). But scrutinize these cases with cynicism set at maximum - because one, the other, or both WILL throw you under the bus if there is a problem and they believe so doing will reinforce their personal stance.

There is also a British Virgin Islands, which is treated as a foreign country. Make sure you have the right VI.

Joe: Actually... It was before the split refund form was created. I got burned early. Rich

I have a "One or None" policy. Period. Been collateral damage too many time trying to be a nice guy. Divorcing couples are NEVER nice when it comes to money.

I used to think that the proper course was to prepare the returns of divorcing couples so that the lowest tax was the result. (Why should the IRS benefit from your marital issues???) Then the spouse who didn't have any withholding took the refund that should have gone to the other spouse. Even after agreeing not too.... So now, Its one spouse or the other for me. Rich