Divorcing Taxpayers and Tax Resolution


I represent the wife of a divorcing couple, and she is the high earner. Their divorce may be final in mid-February. How do you approach either penalty abatement requests and/or an Offer In Compromise in this situation?


Good evening Sherri,

I would be very careful about representing both parties in a divorce proceeding due to a potential conflict of interest, either in fact or appearance.

Under Circular 230, the Treasury Regulations governing ethical standards
applicable to practice before the IRS, conflict of interests is defined for tax
professionals under Section 10.29 (31 C.F.R. §10.29). Under Circular 230, the tax
professional must make full disclosure to all potentially interested parties and all
affected clients must provide their express written consent for representation after a
detailed disclosure of the potential or actual conflict is explained. The tax
professional must retain copies of all written consents for three years from the date
of the conclusion of the representation and provide such written consent to the IRS
upon request.

I have attached a link to an article from a Professional Liability Insurance Carrier that covers this situation.




I would recommend that you reach out to another professional to:

  1. Mitigate your risk by having the other professional represent one of the spouses

  2. Get help with Tax Resolution Case and Potential Other Complex Tax Issues

I am attaching a link to a post that I made in the middle of November 2017 regarding my availability to help.


I provide assistance on individual matters, do Peer to Peer Coaching, and have helped set up entire tax resolution. I pick up where Jassen Bowman and Michael Roz leave off USING THEIR MATERIAL…I also try to look at the individual practices local market and see which tool (tools) work best for them.

As far as using either Canopy or PitBull to resolve cases…I can do it in my sleep! :joy::joy::joy::joy:

I hope this helps!

Good Luck!


I have just been informed, and endured two rather long phone calls this morning, from divorcing clients. I would like to send written notification/disclosure of potential conflict of interest and obtain consent to separate their representation, and/or withdraw should they choose. Does anyone have a template letter? TIA