Understanding Financial Statements

Financial statements are only valuable if you are able to understand and
interpret the information they contain. Unless you have a background in
accounting, understanding your business’ financial statements can be
like trying to understand a foreign language.
Although financial statements can be formatted in a variety of ways,
most business owners rely on four key statements to measure the
condition of their business:

1. Income Statements-The income statement measures your company’s income
and expenses over a given period of time such as a year, a quarter or a
month. In many ways, these statements represent your business’ ability
to function profitably. They highlight trends in sales and expenses that
may require you to adjust the way you are doing business. When expenses
are subtracted from income on the income statement, the result is either
net income or net loss.

2. Balance Sheet-The balance sheet tracks your businesses assets and
liabilities. It is called a balance sheet because it is based on an
equation that must balance in order to be valid: assets = liabilities +
owner equity. Unlike the income statement, the balance sheet does not
measure your business over a period of time. Instead, it is a snapshot
of your business at a given point in time. By comparing balance sheets
from month-to-month or year-to-year, you can measure your business’
growth in significant terms.

3. Statements of Capital-The statement of capital measures changes in
your company’s capital situation over a period of time. In other words,
the capital statement places a dollar value on how much your ownership
of the company is worth. These statements are usually completed at the
end of an accounting cycle to determine how much money the business has
earned for the owner throughout the year. That amount — the net income —
can be used however the owner sees fit.

4. Cash Flow Statements-The cash flow statement measures the actual cash
running in and out of your business over a specific period of time. This
can be extremely valuable because it helps you track from where the cash
is coming, such as: operating activities, investing activities,
financing activities or changes in investment values. You may have a
whole lot of cash but if it is all coming from loans, you may be in
trouble. Properly interpreted, the cash flow statement will give you the
information you need to make the necessary adjustments.

What Should You Do If Your Tax Identity Has Been Stolen!

File as soon as possible. When it comes to filing taxes, those who put
it off until the last minute face greater risk. Fraudsters may try to
claim a refund using your identity before you have a chance to submit a
legitimate claim. Remember, this is not YOUR refund, but a made up
refund using your personal identification.

Don’t trust that phone call or email. A common scam involves a fraudster
contacting the victim, claiming to be from the IRS and demanding that
the taxpayer owes money and must pay immediately. They ask for bank
account, credit card or other financial information. The IRS can get
very aggressive when it wants tax dollars, however this government
agency does not call and act like an illegal collection agency, no one
should provide personal information over the phone or by email.

Check your credit history. If your tax information has been stolen,
there is a great possibility your entire credit history is at risk.
Information in your report can indicate if your identity has been used
for purposes beyond refund fraud. Reviewing your credit report will
inform you if anyone has been opening lines of credit in your name. Make
sure all of your information is accurate and includes only those
accounts and transactions you have authorized.

If you are a victim, create an Identity Theft Report and file a police
report with your local police department. An Identity Theft Report will
help you deal with credit reporting companies, debt collectors, and
businesses that gave the identity thief credit or opened new accounts in
your name. If you have been the victim of identity theft, having a
record on file will help you repair the damage to your credit report and
deal with any creditors who are attempting to collect on fraudulent
charges. It will also place an extended fraud alert on your credit
report, which can help prevent further fraudulent activity moving forward.

Are You Expecting a Tax Refund?

For the average person, a tax refund check can end up being equivalent
of two paychecks. This amount of money can serve many purposes for the
typical household: it can pay an extra mortgage payment or two, pay off
a few credit cards, or it can be enough money to take that much-needed
vacation. But before you go packing your bags or making other plans for
your check, you must make sure you’re entitled to a refund and that
nothing is standing in your way from receiving a check this tax season.
Here are regulations that will stop you from receiving a refund this tax
season:
1) You (or your spouse) defaulted on student loans:
Student loans are one of most common reasons that people have their tax
refund checks offset. A default generally occurs after a borrower fails
to make payments for 270 days. Your joint return can also be intercepted
for your spouse’s student loan debt. If only one spouse has a student
loan debt, you can fill out Form 8379: Injured Spouse Allocation, and
request to have only one spouse’s portion of the refund taken, as
opposed to the entire refund.
2) You owe child support:
As with student loans, if a spouse is not legally responsible for child
support, that person may be able to collect his or her portion of the
tax return by filling out an injured spouse allocation (Form 8379).
3) You owe an IRS debt:
If you were audited by the IRS or you have a debt from a prior tax year
for any other reason, the IRS is going to collect the money you owe
prior to issuing any refund. A spouse (or former spouse) may be able to
be relieved of the tax debt, interest, and penalties. With a tax debt,
the spouse would file an innocent spouse relief or separation of liability.
4) Your income went up (or your tax situation changed):
If you made more money this tax year than you did last year, you may no
longer be eligible for certain credits, such as earned income tax credit
(EITC), which is a refundable tax credit that results in large refunds
for millions of taxpayers. An increase in income may also impact other
tax benefits, like the premium tax credit. If you used the premium tax
credit to lower the cost of your health insurance plan and then your
income increased throughout the year, you may end up owing money because
you are not entitled to as much tax credit as you received. Even if your
income didn’t change, your tax situation can change if you adjusted the
amount of tax you paid throughout the year.
5) Someone stole your identity:
Identity thieves will steal information that provides them with some
sort of financial benefit, this may include stealing a Social Security
number and filing a tax return. If you think someone has stolen your
identity, the IRS suggests you contact your local police, file a
complaint with the FTC, place a fraud alert on your credit report,
contact your creditors, and close any fraudulent accounts. Also, submit
IRS Form 14039, “Identity Theft Affidavit.”

Beware IRS Scammers!

The pervasive IRS impersonation phone scam has claimed nearly 3,000
victims who have collectively paid over $14 million, according to a new
warning from the Treasury Inspector General for Tax Administration (TIGTA).

TIGTA has received reports of roughly 290,000 contacts from scammers
with taxpayers since October 2013. In the scam, taxpayers receive
unsolicited telephone calls from these criminals claiming to be IRS
officials. These callers will demand the taxpayer send money via prepaid
debit cards, ACH transfers or even credit card payments.

The callers who commit this fraud often use an automated robocall
machine and employ common names and fake IRS badge numbers. They may
already know the last four digits of the victim’s Social Security Number.

The scammers can make their caller ID information appear as if the IRS
are calling. They may also send bogus IRS e-mails to support their scam.
In addition, they may call a second or third time claiming to be the
police or the Department of Motor Vehicles, and the caller ID will again
support their claim.

Ignore any requests for personal or financial information by phone,
email, text messaging, or any social media. The IRS will not ask for
payment using a prepaid debit card, ACH transfer, or request a credit
card number over the phone.

If you receive mail from the IRS please call or bring it to our office
BEFORE taking any action to assure you are not a targeted victim.

-Premiere Business Services

Choosing a Tax Professional

A tax return preparer is trusted with your most personal information.
They know about your marriage, your income, your children and your
social security numbers – the details of your financial life. Each year
some taxpayers are hurt financially because they choose the wrong tax
return preparer. Anyone can be a paid tax return preparer as long as
they have an IRS Preparer Tax Identification Number (PTIN) and they sign
and enter it on all returns they prepare. Scary right?

However, tax return preparers have differing levels of skills,
education, and expertise. If you pay someone to prepare your tax return,
the IRS urges you to choose that preparer wisely. Taxpayers are legally
responsible for what’s on their tax return even if it is prepared by
someone else. So, it is important to choose carefully when hiring an
individual or firm to prepare your return.

Premiere Business Services offers exceptional tax return services

Premiere Business Services is known to be professional, honest, and most
of all provides the utmost service to our clients.

At Premiere Business Services, we study tax all year. IRS regulations
require a tax preparer to take 15 continuing hours in taxation, and an
enrolled agent to take 16 continuing education hours in taxation. The
Premiere Business Services staff takes a minimal of 50 continuing
education hours annually, exclusive to taxation. Our staff is not only
well informed, but also very good at communicating options available to
help our clients legally reduce their tax burden.

Our staff is constantly being educated on tax laws and all changes that
are made. If you have any questions or concerns as to how these things
will change your income tax return, please come by or call our office.
We will work through your income tax position and construct a tax
strategy based on your situation.

Premiere Business Services offers appointments as early as 9:00 A.M. and
as late as 7:15 P.M. We provide an intake packet to primarily assist our
new clients. Please print the intake packet (PDF) <
http://www.premierebusinessservices.com/wp-content/uploads/2015/01/TaxEngagementLetterPrivacyPolicy2014.pdf>

and bring it filled out to your appointment to make your visit as smooth
and easy as possible!

We look forward to seeing you in the near future to provide you with the
outstanding income tax services YOU**deserve! If you have any questions,
we will be more than happy to address any situation that is of concern.

Schedule your appointment today at (636) 947-8885!

Premiere Business Services Staff
1189 S. Duchesne
St. Charles, MO 63301