Bob Parrish CPA, P.C. HOME (941) 387-0926 ~ It Is:

    

  Bankruptcy ~ Planning For the Initial Attorney Conference   Send email to pro1040@home.com

Joe's Incoming Cash
Along with his money stash
Far exceeded the bills
Joe decided to  to give
The bankruptcy trustee the till

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Client Letter - What this idea is about  

What This Idea Is About - Client Letter

Description / Scope  / Skill Level Pre-requisite Knowledge

This topic will assist you in moving forward with bankruptcy planning.  In this topic, you will learn what to do, what to gather and what form to use for preparation of the initial conference with your bankruptcy attorney.  If you come to the first conference prepared, the attorney will have a better understanding of your circumstances and can better serve your needs and objectives. 

Topic - Objective - Purpose Why This Is Important: Usefulness General Benefits 7 Objectives: 

This is important because you must furnish complete and accurate information to your attorney.

Time Estimate: allow 1/2 to 1 hour for minimal information

Materials  - Equipment-Tools - Library Resources: None

Who This Applies to: Those who cannot pay bills, are insolvent and/or for which foreclosure is expected

When to Perform: Before foreclosure or judgment 

Special Circumstances: Warnings & Special Circumstances: Do not wait too long - give your attorney and your CPA plenty of time to help gather information, ask you questions, contact other parties, analyze and plan.

 

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Engagement Status Letter 

You have not engaged Bob Parrish CPA PC, Bob Parrish CPA, pro1040, Consulting on line, any related parties, or the ISP to perform any services for you or offer you advice.  This entire site is for educational or informational purposes only.   You are not to use the forms, concepts, strategies, or knowledge without assistance from a professional.   The author, the corporation, the ISP, Bob Parrish CPA, Bob Parrish CPA, P.C. or other parties related to those or this site do not guarantee or warrantee in any manner the suitability, usefulness, accuracy, timeliness, or results of any portions of this site, nor the links contained in this site which link to other areas.   At times, information is taken from other sources and is believed to be accurate, but no verification or confirmation is performed.  Furthermore, if any federal or state law invalidates a portion of this disclaimer, the other portions still apply.   In addition, any allegations or actions are restricted to arbitration only and must be arbitrated by the Better Business Bureau in Sarasota Florida.  Reading of these pages constitutes complete acceptance and agreement with all disclaimer provisions on all pages of this site. ....... Thursday, February 22, 2007 11:45 AM  

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Learning Objectives (What You Asked) 

YOUR QUESTION(S)

 Objective one

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What You Will Need  

 

 

Plain English Analysis What it does, Why it works - The Answer, Alternatives  

Plain English

 

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YOUR ANSWERS

What it does, Explanation of this topic and how it may affect you:

Start of Plain English Section

Why or How it works - Both Sides of the Equation and Examples:

Start of Plain English Section

Alternatives

Start of Plain English Section

Cost v. Benefit Analysis

Start of Plain English Section

Other

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Reserved

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Technical Analysis & Citations What It does, Why it works -

Technical Analysis

 

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Commentary

Start of Technical Analysis

Law

Start of Law Section

Start of Technical Analysis

Regs

Start of Regs Section

Start of Technical Analysis

Cases

Start of Cases Section

Start of Technical Analysis

Revenue Procedures

Start of Revenue Procedures Section

Start of Technical Analysis

Revenue Rulings

Start of Revenue Rulings

Start of Technical Analysis

Private Letter Rulings

Start of Private Letter Rulings

Start of Technical Analysis

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Tax Killers  

This is about Activity Based Taxplanning - maximizing deductions, minimizing cash outlay and maximizing the amount of cash retained and the net worth.  Activity Based Taxplanning (ABT) is a methodology developed by Bob Parrish CPA, that assists people with the tax issues by focusing on the activity (or actions - events) that are being undertaken or contemplated (or have already taken place).  The,  research is compiled from the myriad of sources to help you complete the activity with the least tax cost, while maintaining compliance the tax laws, other laws and regulations and place yourself in a position to protect your objectives.

Tax is a subject that many view in order to cut costs.  Taxes are a cost just as any other cost.  It happens this cost is somewhat intangible and is defined by legislation without a tangible item to view and control.  The money is spent and the control of the expenditure is more appropriately administered by someone trained in the law.

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Cost Killers   Management Info Sys, Cost Acctg, Activity Based Costing)

 This is about Activity Based Costing  - methods to cut costs, management accounting, management information systems, decision support systems - in general about being a manager.

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Preparing for your CPA, attorney, or preparing to start your own What to gather - 

  

HOW OR WHAT TO DO: How to Prepare For the CPA or Legal Counsel - Save the Professional Time - Save Your Money

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 Entrance Interview

1041 Organizer

You should do some "homework" on your before you consult with your legal counsel.  Preparing before your first session will provide information for your legal counsel so that s/he can better serve your needs -  even from the initial counseling session. You should seriously consider the first consultant to be your accountant.  Have your accountant to prepare financial information that is up to date for you.  Let the CPA know that you may need to consider bankruptcy relief and to prepare all the information for counseling with an attorney.  Even if you do seek the advice of the CPA first, the following will assist the CPA in preparing some information for you to prepare for the legal counsel.  Be certain to consider all types of taxes that may be unpaid in the following, along with any past due time payments on purchases.
 

Asset Information:

  1. Real Estate equity analysis. For each property you own, you need to have determined today's fair market value and the pay-off amount for any mortgage or lien. You will need to have:

     

    1. A tax bill that shows the assessed value;
    2. Appraisal or market analysis prepared by a real estate broker; OR
    3. The most recent copy of the tax appraisal (your tax bill)
    4. Mortgage statement which indicates your principal balance;
    5. Information with reference to equity loans or liens on the real estate;
    6. Your Deed; and if applicable;
    7. Homestead.

       

  2. Personal Property: You will need to determine the fair market value of all personal property you own. In many instances, the market for your asset is the "yard sale". In other instances, you will have a statement from an independent third party to determine the value.

     

    1. Recent bank statement for all bank accounts;
    2. IRA, SEP, pension or Profit Sharing Plan statement from employer or Plan administrator and literature describing the Plan;
    3. Bluebook wholesale and retail value for vehicles;
    4. Appraisal for jewelry and other valuables;
    5. List of items in your home that you could sell;
    6. Life insurance policy cash surrender value.

Liability Information:

Your creditors are classified as:
  1. Secured; 
  2. Priority; and 
  3. Unsecured. 

Your information must be complete and accurate (name, address, account number, amount owed):

  1. Secured Creditors:
    1. Prepare a list of your secured creditors and identify the collateral securing the loan;
    2. Have documentation (mortgage or security interest) of the security interest and date the interest attached;
    3. Bring the latest statement of the principal balance due to the creditor.
  2. Priority Creditors:
    1. Outstanding taxes; real estate taxes or income taxes;
    2. Outstanding alimony or child support;

       

  3. Unsecured Creditors:
    1. Prepare a list, in alphabetical order, of all your creditors with the amount owed;
    2. Have available the latest statement for each credit card;
    3. Know the date of the last time you used each credit card.

Income and Expense Information:

To complete the Chapter 7 Liquidation analysis, your attorney will need information about you income and expenses:
  1. Income. You will need to bring the following information:
    1. Last two year's income tax returns with W-2 and 1099 support;
    2. Four most recent pay stubs;
    3. Proof of any other income.
  2. Expenses. Make sure you have gone through your check book or other records to verify your numbers:
    1. Prepare a budget of your basic living expenses (see Official Forms, Schedule J); *Page Attached
    2. In "other" make note of items or categories of expenses not listed in the schedule, such as:

       

      1. Haircuts
      2. Lunches out
      3. Postage
      4. Cigarettes
      5. Banking Fees
    3. Don't forget to figure the cost of car repairs in "transportation" and out of pocket medical expenses such as:
      1. Co-payments
      2. Eyeglasses
      3. Dental Hygiene
      4. Prescriptions
         

OFFICIAL FORMS         No. 6

In re ______________________________ (Debtor)
Case No. _________________ (If Known)

SCHEDULE J - CURRENT EXPENDITURES OF INDIVIDUAL DEBTOR(S)

Complete this schedule by estimating the average monthly expenses of the debtor and the debtor's family. Pro rate any payments made bi-weekly, quarterly, semi-annually, or annually to show monthly rate.

( ) Check here if a joint petition is filed and debtor's spouse maintains a separate household. Complete a separate schedule of expenditures labeled "Spouse".

Rent or home mortgage payment (include lot rented for mobile home) $ ________

Are real estate taxes included? Yes_____ No _____

Is property insurance included? Yes_____ No_____

 

Utilities: Electricity and heating fuel $ _________

Water and sewer $ _________

Telephone $ _________

Other _________________________ $ _________

Home maintenance (repairs and upkeep) $ _________

Food $ _________

Clothing $ _________

Laundry and dry cleaning $ _________

Medical and dental expenses $ _________

Transportation (not including car payments) $ _________

Recreation, clubs and entertainment, newspapers, magazines, etc. $ _________

Charitable Contributions $ _________

Insurance (not deducted from wages or included in home mortgage $ _________

payments)

Homeowners' or renters' $ _________

Life $ _________

Health $ _________

Auto $ _________

Other _______________________ $ _________

Taxes (not deducted from wages or included in home mortgage $ _________

payments)

(Specify) __________________________________________ $ _________

Installment payments: (In chapter 12 and 13 cases, do not list $ _________

payments to be included in the plan)

Auto $ _________

Other __________________________ $ _________

Other __________________________ $ _________

Alimony, maintenance, and support paid to others $ _________

Payments for support of additional dependents not living at your home $ _________

Regular expenses from operation of business, profession, or farm $ _________

(attach detailed statement)

Other ____________________________________________ $ _________

TOTAL MONTHLY EXPENSES (Report also on Summary of $ _________

Schedules

(FOR CHAPTER 12 AND 13 DEBTORS ONLY)

Provide the information requested below, including whether plan payments are to be made bi-weekly, monthly, annually, or at some other regular interval.

A. Total projected monthly income $ _________

B. Total projected monthly expenses $ _________

C. Excess income (A minus B) $ _________

D. Total amount to be paid into plan each $ _____________
_____________ (interval)

 

Exit Interview

From Banking Records

From Customer Records

From Signed Documents

From Your Other Business, or Financial Records

From Corporation Records or Organization Records (meetings, etc.) 

What to do

Start of Preparing For You CPA Section

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Forms - checklists, time-line to do, etc. Assistance - What To Do - 

What to Do  - Forms, Checklists, Calendars, Etc.

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Action Checklist - What To Do

OVERVIEW OF PROCEDURES

GENERAL SETUP & STARTUP

PRINT FORMS AND DOCUMENTS NEEDED

PRESENTATION STANDARDS

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DETAILED STEPS

STARTING

FROM CLIENT OR BUSINESS RECORDS

CONTRACTS, BILLS OF SALE, AGREEMENTS, ETC.

LIST OF DOCUMENTS NEEDED

ORGANIZER

ENTRANCE INTERVIEW

EXIT INTERVIEW

Back to Start of What To Do  

OBTAIN THE ORGANIZER AND BE CERTAIN ALL INFORMATION IS AVAILABLE

GATHER AND SORT THE INFORMATION

OBTAIN THE WORKPAPER TITLE SHEETS

OBTAIN THE PRESENTATION TITLE SHEETS

OPEN ALL STANDARD DOCUMENTS

OVERVIEW THE ENTRANCE INTERVIEW FORM

OVERVIEW THE LIST OF INFORMATION AND CLIENT OR BUSINESS RECORDS NEEDED

START THE REQUIRED COMPUTER PROGRAMS

OBTAIN THE CHECKLISTS IF NEEDED AND WORK ON THE JOB BY EACH TYPE OF ACTIVITY OR EVENT

Back to Start of What To Do  

PRINT ALL THE REQUIRED DOCUMENTS OR MAKE COPIES AS NEEDED

PRESENTATION STANDARDS

DETERMINE THE CORRECT PRESENTATION STANDARD TO USE

ENGAGEMENT LETTER AND DISCLAIMER

PRESENTATION IN GENERAL

WHAT THE ENGAGEMENT IS LIMITED TO

WHAT SERVICES WERE PERFORMED

HOW THIS HELPS & BENEFITS

4 WAY TEST APPLICATION

Is it the TRUTH

Is it FAIR

Will it build GOODWILL and BETTER FRIENDSHIPS

Will it be BENEFICIAL to all

Back to Start of What To Do  

BEFORE FINALIZING THE WORK PROCESS CONSIDER THE FOLLOWING

Compliance

Paying Bills or other events

The professional should perform functions the client does not have time for

The  professional should perform necessary functions the client staff does not have training for

Reduce Costs

Reduce Risks

Setting Goals or objectives

Setting methods for monitoring

Setting dates, methods & procedures for follow-up

Setting guidelines for defining when variances from the guideline warrant policy or procedure changes

Identify the policies or procedures that need to be changed to accomplish the goal or objective

Back to Start of What To Do  

OBTAIN THE STANDARD WORKPAPER FORMS NEEDED

LIST OF THE STANDARD FORMS AND W/P NEEDED

Back to Start of What To Do  

OBTAIN THE DOCUMENTS FOR THIS JOB

PLACE BLANK FORMS IN THE CORRECT SEQUENCE

GENERAL & FOR ALL JOBS

Instructions for finalizing and completion - for example instructions for the mailing of forms to the IRS

Actions Checklist

Report Cover Letter

Required Documents and attachments

Back to Start of What To Do  

FINAL OVERVIEW BEFORE THE JOBS IS ENDED & CLOSED

LOOK AT THE ORIGINAL QUESTION - has it been answered, were more questions added?

THE ANSWER - limit the answer to a short paragraph of about 7 sentences.  Did this solve the issue?  The ANSWER is not considered the SOLUTION

THE SOLUTION - understand the objective or goal and restate it.  Were the goals met?  What might prevent obtaining the goals. Do the benefits outweigh the costs?  Reduce Costs?  Reduce Risks?  Setting Goals or objectives:

Setting methods for monitoring

Setting dates, methods & procedures for follow-up

Setting guidelines for defining when variances from the guideline warrant policy or procedure changes

Identify the policies or procedures that need to be changed to accomplish the goal or objective

ACTIONS - checklist, calendar, columnar presentation showing separate columns for Client, CPA, Broker, Bookkeeper, Lawyer, Insurance Agent, etc.

Back to Start of What To Do  

COST v. BENEFITS ANALYSIS

PROPOSAL

FACTS DISCOVERED & USED

COMPUTATIONS & REPORTS

TECHNICAL ANALYSIS WITH CITATIONS AND AUTHORITY

FORMS - agreements, contracts, trusts, tax forms, financial reports, management information reports, policies or procedures

REQUIRED ATTACHMENTS

Back to Start of What To Do  

FINAL STEPS

Overview - look at the steps required and the steps performed.  Are there unusual items?  Are there exceptions or adverse results of the procedures performed?  Find resolutions for all unusual or adverse items.

Compliance - has compliance "substantially" been met.  That is no "material" adverse results?

Math Check

Proof and spell check

Theory & overview by someone not performing the procedures

Close the case and archive it.

Back to Start of What To Do  

Forms and checklists

Back to Start of What To Do  

How to use the forms

Back to Start of What To Do  

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Financial Accounting: Bookkeeping & Financials 

Financial Accounting

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Financial Statement Presentation

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Notes to Financial Statements

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How to Make Entries

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What Kind of Records to Keep

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Bookkeeping Methods - Cash, Accrual and Other

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How the Business Entity Affects the Recording

Sole Proprietor

Corporation - C & S

Partnerships - General, Limited, Limited Liability Company, Registered Limited Liability Partnership or Company

Trusts

Tax Exempt

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Compliance - what is required for protection, defense, etc.  

Compliance Checklist

Back to Start of What is required for protection, defense, etc.  

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Alerts & Dangers - Risks, Asset Protection, IRS Defense 

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Action Checklist

Back to Start of Alerts & Dangers

Alerts & Dangers - Risks

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Asset Protection

Back to Start of Alerts & Dangers

Your Defense

Back to Start of Alerts & Dangers

 

 

 

 

 

Tools - Spreadsheets - Documents - Reports - Checklists

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Spreadsheets & Computations 

 

Spreadsheet #1

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Contracts, Trusts, etc. 

Agreement #1

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Reports Required 

 Report #1

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Checklists for Deployment  

 Checklist #1

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Checklist for Monitoring  

 Checklist #1

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