Question
John and Jane Doe are getting a divorce. John and his longtime CPA, Andre, are old friends; Andre has provided tax and accounting advice to
John and Jane Doe are getting a divorce. John and his longtime CPA, Andre, are old friends; Andre has provided tax and accounting advice to him for over 15 years, and to the couple since they wed 10 years ago. As part of his high-touch client service philosophy, Andre has met quarterly with the couple to discuss their tax needs as individuals and owners of a successful real estate agency. John and Jane trust Andre implicitly and ask him to assist them in this troubling time. Given their long relationship, and impressed by their desire to settle the divorce amiably, Andre agrees. Not anticipating difficulties, Andre does not request that they sign a conflict of interest waiver. Over the following months, however, negotiations between John and Jane steadily deteriorate, and they eventually communicate with each other only through their attorneys. Andre is in the process of finalizing the preparation of their joint federal and state personal income tax returns, when John sends him an e-mail stating that his attorney has advised him to file separately on his return instead of jointly, as he and Jane had agreed. John also says, Jane will need to figure out her own tax situation with her attorney. You are my advocate, not hers. Andre is not sure what John means nor, more importantly, how it may impact the services he has agreed to provide both John and Jane. What should Andre do?
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