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Discussion:Yay! CPA letters are back!

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Discussion Forum Index --> General Chat --> Yay! CPA letters are back!


Woodstock (talk|edits) said:

30 January 2010
I am so excited that mortgage companies are back to asking for this and that now I can go back to explaining to my clients why I do not write these letters. OH JOY! Happy Tax Season all!

Wiles (talk|edits) said:

30 January 2010
Hi Jack. This is your lender. Hey! I need you to have your CPA write a letter stating that you have been self employed for the last 2 years and that your access to your company's funds will not have a negative effect on the future operations of your business. I know your CPA is not a fortune teller, but this is really no big deal. We all know you wouldn't do anything to hurt your business, so it's just standard procedure. Boilerplate, really.

FloridaTaxes (talk|edits) said:

1 February 2010
I had someone I don't know call last week saying he needed financial statements for his bank. I asked him what they specifically asked for and he said they needed a reviewed or audited P&L and Balance Sheet. I explaned to him that I am not a CPA and couldn't do this. He insisted that all I needed was to take HIS P&L which he already created and put my firm's name on the header.

I then told him maybe we could prepare his 1120S and submit that instead. He called the bank and they said that was okay. So then he proceeded to tell me he hasn't filed returns for 2007 or 2008. I told him we had to do those first, which he also couldn't understand. No matter how I tried to tell him there's a balance sheet and retained earnings section that can't really be done out of order he still did not understand.

So at the end he said he was going to find another accountant, not a CPA, that would take his P&L and put their name on it and call it a review. The sad thing is he probably did find someone who would do it.

JR1 (talk|edits) said:

February 1, 2010
Well, he offered me five grand cash, what was I to do?

FloridaTaxes (talk|edits) said:

1 February 2010
Actually, the reason why didn't want to pay a CPA to do the review/audit was because he didn't have much money to pay.

TRcpa (talk|edits) said:

1 February 2010
This is my boiler plate response that has worked 3 (C Corp and Sch C LLC) different times in as many months and I'd ask how much risk is really putting me into. The only thing I said is I looked at a bank statements and they have enough money to cover it. If they are a paying client and can live with language that I dictate then why not.

It has come to my attention that ________________ intends to withdrawal approximately $__,____ from their small business account(s) to use toward the purchase of a home. As an unincorporated small business the owner(s) is entitled to take reasonable withdraws as he or she sees fit. As of the _________________ bank statement the business has sufficient funds to cover this withdrawal.

As you know, a credit decision should be based on a lender’s exercise of due diligence in obtaining and considering multiple factors and information. My firm has not audited nor is under engagement to audit the financial statements of this unincorporated small business. Any use by you of this letter is solely a matter of your responsibility and judgment. This letter is not intended to establish a client relationship with you, nor is it intended to attest to or guarantee any financial information.

CrowJD (talk|edits) said:

2 February 2010
"Actually, the reason why [he] didn't want to pay a CPA to do the review/audit was because he didn't have much money to pay." Which makes him a good candidate for a loan...a loan which will likely default. lol.

There are a lot of people who are still in denial about what happened in this last meltdown, and it is possible that we'll have to have another one to get the point across.

Right now, the lobbyists are doing everything in their power to keep real financial regulation from happening, so it's definitely a depressing scenario. The irony is that these lobbyists are using OUR money from the bailout to do the lobbying.

FloridaTaxes (talk|edits) said:

2 February 2010
He was applying for a loan modification on his mortgage. I'm all in favor of helping people keep their homes, but some people don't understand there's only so much the banks can do. They are not going to drop your mortgage payment from $2,000 a month to $500 a month...lol.

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