Form 6

Question 1

Who must file?

Answer 1

County Commissioners, Constitutional Officers, Candidates for same + 2 schools:

Clerks of Circuit Courts, Sheriffs,
Tax Collectors, Property Apprs, Supervisors of Elections.
County Commissioners.
Elected Superintendents of Schools.
Members of District School Boards.
Housing Finance Corporation Board.

Question 2

What is included in a Form 6 filer’s Net Worth?

Answer 2

All assets over $1k.

Question 3

In Form 6, what is aggregated in calculating Net Worth?

Answer 3

Household goods + personal effects.

Question 4

In Form 6, what household goods + personal effects must be called out?

Answer 4

If over $1k.

Question 5

What creditors must be listed on a Form 6?

Answer 5

Owed over $1k.

Question 6

What source of income must be listed on a Form 6?

Answer 6

Anything contributing over $1k.

For 2d, in which you own 5% + rec $1k, disclose your 10% customer.

Question 7

On Form 6, state the alternative to listing income.

Answer 7

Attach tax return.

Question 8

What’s the alternate way to calculate income/assets/creditors in Form 6?

Answer 8

There is none. BUT Constitutional Officers can skip listing income & attach tax return.

Question 9

Summarize the incoming & outgoing thresholds for Form 6.

Answer 9

FORM 6
----------
List
1)  Income over $1k.
2)  2nd Income = over $1k AND own 5%
3)  Assets over $1k.
4)  Creditors owed $1k.
5)  Net work [assets - creditor = net worth]

Question 10

What is meant by “secondary income” on BOTH Form 1 (regular folks) & Form 6 for (Constitutional Officers)?

Answer 10

BOTH
----------
Not second job buta bus.
-----------
Form 1:  Discl 10% bus & customer of:
$1k + own 5%
-----------
Form 6:  Discl bus & 10% customer of:
$5k + own 5% OR
$1.5k + 5% + 10%

Question 11

Why is Constitutional Officers’ filing of Form 6 easier on the test taker?

Answer 11

Generally the answer will be $1k.
[only oddity is 2nd income, 5% + rec $1k]

Question 12

Compare Form 6 & Form 1’s income & 2nd income.

Answer 12

Form 6 Income
1st)  $1k
2d)  Discl 10% customer:  rec $1k, own 5%
-----------
Form 1 Income.  
1st)  $2.5k or 5%
2d)  Discl 10% customer if:
($5k + 5%)
($1.5k + 5% + 10%)

Question 13

Compare Form 6 & Form 1’s 2nd income.

Answer 13

BOTH / 2ND INCOME
-----------
Form 6: Discl bus & 10% customer of:
own 5% AND rec $1k 
vs.
Form 1: Discl bus & 10% customer of:
rec %5k + own 5%
OR
rec $1.5k + own 5% + earn 10% of inc

Question 14

Compare Form 6 & Form 1’s Assets.

Answer 14

Form 6: All assets, inc. real estate valued @ $1k
vs.
Form 1:
Real estate - own 5%
Intangibles (cash, CD) = 10% of assets or $10k.

Question 15

Compare Form 6 & Form 1’s Creditors.

Answer 15

BOTH / CREDITOR
-----------
Form 6:  Creditor owed $1k.
vs.
Form 1:  Creditor owed $10k OR exceeds net worth.

Question 16

What’s the general numeric structure to remember for both Form 6 and Form 1.

Answer 16

Form 6: $1k
Form 1: 5% incoming, 10% outgoing.

Question 17

Memory hint for Form 6.

Answer 17

FORM 6
-----------
Constitutional Officer & Form 6 are tough jobs.  Only 1 person wants that job.  
-----------
$1k = income, assets, creditor
$1k + 5% = 2nd income.

Question 18

Memory hint for Form 1.

Answer 18

INCOMING:
5% or $2,500 = income
5% or $5k = 2nd income [or own 5% + earn 10% of income + rec over $1,500].
5% real estate.
OUTGOING:
10% of assets or $10k intangibles (cash, CD)
$10k or any debts exceeding net worth.

Question 19

Compare Form 6 & Form 1’s income & 2nd income.

Answer 19

BOTH FORMS
-----------
Form 6.  2d inc:
Discl bus & 10% cust of:
rec $1k + own 5%
-----------
Form 1.  2d inc:
Discl bus + 10% cust of:
rec $5k + own 5% OR
rec $1.5k + own 5% + earn 10%.

Question 20

State Form 1’s Pattern.

Answer 20

1st inc:  $2.5k  or   5%
2d inc:  discl bus + 10% cust if:
$5k + 5%  ---OR---  $1.5k + 5% + 10%
intang:  $10k   or   10%
crdtrs:   $10k   or   exc worth

Question 21

Form 1’s Pattern summarized.

Answer 21

starts @ $2.5 + double
1st inc:  $2.5k  or   5%
2d inc:  disc bus + 10% cust if:
$5k + 5% ---OR--- $1.5k + 5% + 10%
assets:  $10k   or   10%
crdtrs:   $10k   or   exc worth

1st Inc: $2.5 OR 5%
2d Inc: disclose bus + 10% gross BUS cust if:
own 5% + rec $5k OR
own 5% + rec $1.5k + 10% INDIV gross inc
———–
RE: own 5%.
———–
Intang: $10k value OR 10% of assets
Debts: $10k OR exceed net worth
~~~

Question 22

State Form 6’s Pattern.

Answer 22

1 ———- 1+5% ———- 1 ———- 1

1) Income over $1k.
2) 2nd Income = over $1k AND own 5%
3) Assets over $1k.
4) Creditors owed $1k.
5) Net work [assets - creditor = new worth]

Question 23

Form 6’s Pattern summarized.

Answer 23

FORM 6
-----------
$1K = everything.
1st inc:  $1k
2d inc:  $1k + 5%
assets:  $1k
crdtrs:   $1k

Question 24

Does 2d income = 2d job?

Answer 24

2d income is ownership in a business.
A 2d job wd be included in ‘income.’

Question 25

BOTH FORMS, 1 & 6
-----------
Re:  Both Form 1 & Form 6, what are the penalties for:
A.  Late filing?
B.  Failure to fully disclose?

Answer 25

late file: $25/day aft 9/1 up to $1.5k
full discl: removal, $10k fine

Question 26

CHALLENGE
-----------
Re: Form 6, 2nd income.
What must you list?
What 3 things must you include?
What must you not list?

Answer 26

Own 5% AND rec more than $1k.
—
1) List every source of income to the business which exceeded 10% of the entity’s gross income.
—
2) Include (a) source address, (b) business activity & (c) the name of your 2nd business.
—
3) DO NOT list the amount of income the business derived from that major source of income.

Question 27

How do we know that Form 6 is more interested in where you get your money than how rich you are?

Answer 27

CHALLENGE
-----------
LIST major sources (10% customer)
---
DO NOT list the amt of income the business derived from that major source of income.