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Bob
Parrish CPA, P.C. HOME
(941) 387-0926 ~ It Is:
Introduction
Objectives
Your Questions
What You Will Need
Warning
Intro Summary
Related Information
*Plain English Explanation
Object Restated
Why or How It Works
Alternatives
Cost V. Benefit
Other
Reserved
*Tech Analysis & Citations
Commentary
Law
Regs
Cases
Revenue Procedures
Revenue Rulings
Private Letter Rulings
*TAX KILLERS
Title 1
Title 2
*COST KILLERS
Title 1
Title 2
*PREPARE
FOR ADVISER
Entrance Interview
From Your Other Business, or Financial Records
From Corporation or Organization Records (meetings, etc.)
*DO IT YOURSELF
Action
Checklist - What To Do
PRINT ALL THE REQUIRED DOCUMENTS
OBTAIN THE STANDARD WORKPAPER FORMS NEEDED
FINAL STEPS
*FINANCIAL ACCOUNTING
Financial
Statement Presentation
Notes
to Financial Statements
How to
Make Entries
What
Kind of Records to Keep
Bookkeeping
Methods - Cash, Accrual and Other
How the
Business Entity Affects the Recording
*COMPLIANCE
Title 1
Title 2
*ALERTS - DANGERS
Action Checklist
Alerts
& Dangers - Risks
Asset
Protection
Your
Defense
*TOOLS
Title 1
Title 2
*SAMPLES
Title 1
Title 2
*REQUIRED REPORTS
Title 1
*CHECKLIST FOR DEPLOYMENT
Title 1
*CHECKLIST FOR MONITORING
Title 1
*INDEX
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Important Tax Changes - Jan. 2000
Preface ~ Client Letter - What this idea is about
Dear
Client:
Usefulness General Benefits 7 Objectives: Type in this area an introduction to this topic. State what it is about, state whether this is an introduction, beginner level, imd or advanced. State whether any special knowledge is required - for example, law, mathematical, management, knowledge of a specific industry, etc.
Learning Objectives (What You Asked) ~ Your Questions: The following questions will be answered
This Topic OBJECTIVE is or What it Does
What You Will Need
| You Will Need | What or How Much? |
| Time | |
| Materials or Tools | |
| Library | |
| Who This Applies To & Industry Type | |
| When To Do This | |
| Special Circumstances or Warnings | |
TOP
Engagement Status Letter ~ WARNING!
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 01:14 AM
Summary
| Poor old Sue Started a set of books anew without reading these lines few and now Sue is in a Stew |
Related Information
-
A few closely related topics & pages From Bob Parrish CPA PC (left-click this to expand it):
Plain English Explanation
Object Restated
Why or How It Works
Alternatives
Cost V. Benefit
Other
Reserved
Your Answers
This Topic OBJECTIVE is: What it does Explanation of this topic and how it may affect you (for how it may affect you also refer to : Financial Accounting: Bookkeeping & Financials ~ Compliance - What is required for protection, defense, etc. ~ Alerts & Dangers)
Start of Plain English Section
Why or How it works - Both Sides of the Equation and Examples:
The maximum deduction allowed for interest paid on a qualified student loan has jumped to $2,000 from $1,500 in 1999. You can claim the deduction on line 24 of Form 1040 or line 17of Form 1040A.
A qualified student loan is defined as any loan taken out for the sole purpose of paying for higher education expenses for you or your spouse or a dependent.
The expenses must have been paid or incurred within a reasonable time before or after you took out the loan, and for education furnished during a period when the recipient of the education was a qualified student.
Generally, those costs include tuition, fees, room and board, books, equipment and other necessary expenses, such as transportation. But the IRS notes you must reduce those expenses by nontaxable employer-provided educational assistance benefits; nontaxable withdraws from an education IRA; U.S. savings bond interest that is nontaxable because you paid qualified higher educational expenses and qualified scholarships that are nontaxable.
Also, you'll have to exclude from your expenses any veterans' educational expenses you might have received and any other nontaxable payments -- other than gifts, bequests, or inheritances -- received for educational expenses.
The other retirement-related tax change this year effects Individual Retirement Accounts, or IRAs, but only marginally.
The government has increased by $1,000 the amount of income you can earn and still be eligible for a write-off of your IRA contribution.
The taxpayer's ability to claim an IRA deduction begins to phase out at an annual gross income of $32,000 for a single person and $52,000 for a married person filing jointly. When your income exceeds that amount by $10,000, you lose the deduction completely.
If you're among the millions of U.S. citizens living abroad, keep in mind that you're never too far from Uncle Sam's reach.
You still are expected to pay taxes on your worldwide income, but the "foreign earned income exclusion" does allow you to deduct up to $76,000 this year for income actually earned abroad. That limit is slated to hit $80,000 in 2002.
If both you and your spouse work abroad and you each meet the requirements, you can each choose the foreign earned income exclusion -- thereby excluding a combined $152,000.
Select IRS Publication 54 for more.
Car Mileage
For those with unreimbursed expenses, bear in mind that the standard
mileage rate for calculating the deductible costs of operating your car
for business, charitable, medical or moving purposes jumped slightly to
34-1/2 cents a mile. That's up from 32-1/2 cents a mile in 2000.
One other important tax change effective this filing season pertains to so-called "foster children." And tax preparers differ on what the change means for unwed couples living together, where one has a child from a previous relationship.
Under the newly revised definition of foster child, as it pertains to the child tax credit and the earned income credit, a child is your eligible foster child if all of the following apply:
a.) The child is your brother, sister, stepbrother, or stepsister (or a descendant of such relative) or has been placed with you by an authorized placement agency.
b.) You cared for that child as you would your own child.
c.) The child lived with you for the whole year, except for temporary absences.
Previously, the child had only to meet b.) and c.) to be an eligible foster child.
Using the older definitions, a woman with two kids from a previous marriage and no annual income, might bump herself out of eligibility for the EIC by moving in with her boyfriend, who supports them. That's because only the boyfriend, as the household breadwinner, would be able to file for earned income credit -- by claiming the child he helps to support as a foster child.
If his salary was $32,000 or more, however, he would be ineligible to claim the tax credit, and neither the mother or the boyfriend would get to claim the child as a dependent for purposes of the credit.
By adding in the language of line a.), the boyfriend would no longer be related to the children and therefore ineligible to claim them as his foster kids. The mother would qualify for the tax credit on her own.
"They basically just got rid of the flat definition which said a foster child is any child you care for as your own and cared for the entire year," Hockenberry said. "In a way, a lot more people could qualify for the Earned Income Credit than did before."
There's the flip side of that argument, too, though.
The EIC is available on a graduated scale to anyone earning less than $27,413 with one child, and anyone earning less than $31,152 with two or more children. The tax credit can be as much as $2,353 for one child, and $3,888 for two kids.
Lastly, if you are a minister, a member of a religious order not under a vow of poverty, or a Christian Science practitioner who previously elected exemption from social security coverage and self-employment tax, you can now revoke that exemption. Previously, that choice was irrevocable.
Start of Plain English Section
Comparisons
Contrasts
Start of Plain English Section
Cost v. Benefit Analysis ~ Its Value
Start of Plain English Section
Other
Start of Plain English Section
Reserved
Start of Plain English Section
Technical Analysis and Explanation
Commentary
Law
Regs
Cases
Revenue Procedures
Revenue Rulings
Private Letter Rulings
Commentary
Start of Revenue Procedures Section
Start of Private Letter Rulings
Tax Killers
Title 1
Title 2
Title 3
Title 4
Title 5
Title 6
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.
Cost Killers
Title 1
Title 2
Title 3
Title 4
Title 5
Title 6
Management Info Sys, Decision Support Systems, Activity Based Management and Costing, Cost Accounting)
Prepare for Your CPA or Attorney (or prepare for doing this yourself)
Entrance Interview
From Your Other Business, or Financial Records
From Corporation or Organization Records (meetings, etc.)
About the Preparation Procedures
If you have decided this task must be done, the first procedure is to be certain you have all the facts important to this topic. So that you may know the value, to you personally, of this topic you must have facts of your circumstances. So that you may comply with applicable rules, you must have all the facts. Factual research is time consuming and if not performed wisely will be very expensive if not performed properly, and thoroughly. IF you decide to make this a do-it-yourself project you should seek the advice of a professional qualified in your jurisdiction to assist you with defining important information and then to overview the information you have gathered.
What to gather - an Organizer and Prepare for your CPA, Attorney or Financial Adviser
Organizer
From Your Other Business, or Financial Records
From Corporation Records or Organization Records (meetings, etc.)
Start of Preparing For You CPA Section
Do It Yourself - Forms Required to Be Filed, Checklists, Etc.
DO
IT YOURSELF
Action
Checklist - What To Do
PRINT ALL THE REQUIRED DOCUMENTS
OBTAIN THE STANDARD WORKPAPER FORMS NEEDED
Title 1
Title 2
Title 3
Title 4
Title 5
Title 6
How to do this - What to Do
GENERAL SETUP & STARTUP
PRINT FORMS AND DOCUMENTS NEEDED
PRESENTATION STANDARDS
STARTING - FIRST THINGS FIRST, OBTAIN WHAT YOU NEED
OBTAIN THE ORGANIZER AND BE CERTAIN ALL INFORMATION IS AVAILABLE
OBTAIN AND SORT THE INFORMATION
OBTAIN THE STANDARD WORKPAPER FOLDER SETUP
OBTAIN THE STANDARD PRESENTATION LAYOUT
OBTAIN & OPEN ALL STANDARD DOCUMENTS OR WORKPAPERS
OVERVIEW & BECOME FAMILIAR WITH 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
OBTAIN THE STANDARD WORKPAPER FORMS NEEDED
LIST OF THE STANDARD FORMS AND W/P NEEDED
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
DOING THE WORK
PRINT ALL THE REQUIRED DOCUMENTS OR MAKE COPIES AS NEEDED
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
OVERVIEW THE WORK
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
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. State Remedial Solutions and Preventive Solutions.
ACTIONS - checklist, calendar, columnar presentation showing separate columns for Client, CPA, Broker, Bookkeeper, Lawyer, Insurance Agent, etc.
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
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.
Financial Accounting - Bookkeeping and Financial Statements
Financial Statement Presentation
Notes to Financial Statements
How to Make Entries
What Kind of Records to Keep
Bookkeeping Methods - Cash, Accrual and Other
How the Business Entity Affects the Recording
Financial Statement Presentation
Back to Start of Financial Accounting: Bookkeeping & Financials
Back to Start of Financial Accounting: Bookkeeping & Financials
Back to Start of Financial Accounting: Bookkeeping & Financials
Back to Start of Financial Accounting: Bookkeeping & Financials
Bookkeeping Methods - Cash, Accrual and Other
Back to Start of Financial Accounting: Bookkeeping & Financials
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
Back to Start of Financial Accounting: Bookkeeping & Financials
Compliance Requirements - Requirements, Defense, Protection, Etc.
Title 1
Title 2
Title 3
Title 4
Title 5
Title 6
Compliance Checklist
Back to Start of What is required for protection, defense, etc.
Alerts and Dangers
Action Checklist
Alerts & Dangers - Risks
Asset Protection
Your Defense
Title 5
Title 6
Back to Start of Alerts & Dangers
Back to Start of Alerts & Dangers
Back to Start of Alerts & Dangers
Back to Start of Alerts & Dangers
Tools - Spreadsheets - Documents - Checklists - Organizers
TOOLS
Spreadsheets & Math
Spreadsheets & Computations
Back to Start of Spreadsheets & Math
Sample Agreements - Trusts - Etc.
Title 1
Title 2
Back to Start of Contracts, Trusts, etc.
Required Reports
Title 1
Title 2
Back to Start of Reports Required
Checklist for Deployment
Title 1
Title 2
Checklists for Deployment
Back to Start of Checklists - Deployment
Checklist for Monitoring
Title 1
Title 2
Back to Start of Checklist - Monitoring
Index
Title 1
Title 2
Click on the text to expand or collapse the outline
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Analyses
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Plain English Analysis - Your Answers
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Do It Yourself
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How To Do This
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Increase Wealth
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Information Sources
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Introduction
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Procedures
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Tools
Contact Information
Title 1
Title 2
Title 3
Title 4
Title 5
Title 6
