To Lynch Marini & Associates Inc and the Peer Review Committee of the Massachusetts Society of CPAs: We have reviewed the system of quality control for the accounting and auditing practice of Lynch Marini & Associates, Inc. (the Firm) in effect for the year ended April 30, 2020. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified
Public Accountants (Standards).
Category: accounting news
Lynch Marini 2017 Peer Review
To Lynch, Malloy, Marini, LLP and the Peer Review Committee of the Massachusetts Society of CPAs: We have reviewed the system of quality control for the accounting and auditing practice of Lynch, Malloy, Marini, LLP (the Firm) in effect for the year ended April 30, 2017. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants (Standards).
The Paycheck Protection Program Flexibility Act of 2020
In a unanimous vote, the U.S Senate passed the Paycheck Protection Program Flexibility Act of 2020. The legislation, which moved through the U.S. House of Representatives last week, creates more flexibility for borrowers and extends the time period for businesses to use the funds from eight weeks to 24 weeks, and changes the ratio from 75/25 to 60/40 for payroll to other fixed costs. Other updates include:
- Extending the repayment period to a minimum maturity of five years after application for forgiveness with a remaining balance.
- Access to payroll tax deferment for businesses that received PPP loans.
- Extending the rehiring deadline to align with expiration of enhanced unemployment insurance benefits.
The bill now goes to the President’s desk for his signature.
We expect the forgiveness PPP loan application to change based on the new legislation. If your business has been awarded a PPP loan, you will need to work with the lender which provided you the loan. Many of these financial institutions will require that you use their forms to apply for forgiveness (not the standard SBA form), and they may require that you provide your PPP forgiveness application and documentation on-line.
Additional information can be found here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program
Norwell Business of the Year
Lynch Marini & Associates named Norwell Business of the Year. Norwell’s Business of the Year award strives to highlight those that go above and beyond that description. This year’s award goes to Lynch Marini & Associates. The certified public accountant firm has offices in Natick and at 99 Longwater Circle in Norwell, having moved to the South Shore town in 2009. Since then, the firm has been the provider of accounting, tax and business services to the community.
Lynch Marini also supports local organizations, not only with accounting services, but by donating money for events like Summer Fest and helping build homes for Habitat for Humanity. The company is a gold sponsor for this year’s Norwell’s Summer Fest event, donating $2,500, and has provided their accounting services for past festivals.
“It’s great to be able to get out and enjoy the community and your neighbors and meet other people,” Lynch Marini & Associates Principal Partner Robert Lynch said.
Besides Summer Fest, the company also supports scholarship programs in town, the Norwell Scholastic Arts Society, The James Library and the Norwell Robotics Team.
“I think it’s very important to give back to the community, to help the community thrive and be healthy and help those who need help,” Lynch said. “Everyone needs it now and then.”
When Habitat for Humanity was building a home on Circuit Street in 2012, Lynch Marini was one of several companies that helped with construction. Robert Lynch was one of 10 employees who went to the site and helped put up siding and performed other construction work around the site.
“It was good to help out with a service project in the community,” he said.
The company, especially Lynch, has certainly made an impression on the community, which is why Norwell resident and business owner Reiko Beach nominated them for the award.
“I have known Rob Lynch for a number of years and he has always been open to helping answer accounting questions for my business,” Beach said. “He has always given generously his time and patience to me and people that I have recommended to him.”
In a press release, the Norwell Chamber of Commerce said Lynch Marini goes above and beyond what any normal business does to support the community it serves.
“The Norwell company prides itself in looking beyond the numbers – each client engagement is a living entity, in other words, the company is vested in its clients’ businesses, towns and organizations in which the clients are deeply vested with their own blood, sweat, and tears,” the release states.
In response to the high praise, Lynch simply said it was a pleasure to serve the Norwell community in whatever capacity the company can.
“We’re all here to help and we all have our different needs,” he said. “We’re just glad to be able to help anyway we can.”
For more information on open positions, and accounting services, contact our team.
November 2018 Tax Planning
As most people know, 2018 had tremendous tax changes. Since January, our team has been conducting detailed analysis and discussing strategies, as to how business owners can best deal with the changes. For the Small Business Owner, the tax law has been changed in an attempt to provide the same tax rate as corporations.
However, great care and attention to detail must be exercised to maximize these benefits. Too much or too little salary, over expensing of equipment purchases, and implementation of retirement plans must all be reviewed to ensure that tax benefits are optimized. Important questions must be asked, such as:
- Should you incur those capital gains this year?
- How will capital gains affect the overall tax rate?
- How does your spouse’s income affecting this computation?
Some business owners may have heard that the recent changed simplified tax returns and planning. Our team believes many of these changes actually make it more complex.
We welcome a discussion relating to your specific business situation. Please contact Tony Marini or Rob Lynch for questions or assistance.
Rob Lynch 781-871-5850
Tony Marini 508-650-0018
August 2018 Tax News
The IRS issued additional guidance to a very significant deduction for flow through entities, small business and self-employed. The significant developments are:
Contract or employee – Now more important than ever and we think this will be looked at if examined.
Rental Activities – Should that get the deduction? – Still not totally clear.
Value of property – Make sure your records are clear as to what is depreciated and not depreciated since this a part of the computation.
Aggregation Rules – Should all your entities be aggregated or not?
Specified Service Trade or Business – Unless taxable income thresholds are met, certain business are not eligible.
This 182 page clarification guidance from the IRS continues is complex and nuanced. We will continue to focus on this clarification and other related issues for all of our clients.
Please send us a note or give us a call to discuss these and any other questions or issues you may have.
Rob Lynch 781-871-5850
Tony Marini 580 650-0018
July 2018 Accounting News
Certain non-profits are required to undergo a review or an audit which results in formal financial statements. For the year ending December 31, 2018, the reporting requirements are changing. The presentation of Temporary Restrictions and Permanent Restrictions along with Board Designated will be different. New footnote disclosures are required.
It is important to ensure that your Non-profit has the correct and accurate descriptions of your donation and supported with thank you letters. We continue to recommend that all restriction of funds be fully detailed and if appropriate, approved by your Board.
Please send us a note or call us to discuss these and any other questions or issues you may have.
Rob Lynch 781-871-5850
Tony Marini 580 650-0018
2018 Tax Law Changes: Deductions, Limitations…
As you have heard, there have been significant tax law changes for 2018. We have been carefully studying the changes, and know that it will affect all of our clients.
Here are some of our thoughts on the most significant changes:
- Your deductions will decrease – this is caused by a limitation on the state and local taxes that can be deducted, and because there are no miscellaneous deductions (investment costs, unreimbursed business expenses and tax preparation fees).
- Your standard deduction will increase which will result fewer people itemizing their deductions.
- If you bought a house or refinanced your mortgage after December 2017, the mortgage limitations changed to a maximum of 750,000, plus 100,000 if you have a line of credit. If you have or own a business, the rates may be less but there are some significant limitations which can impact your returns.
- If you are in real estate, there are deductions now available to you that may reduce your taxes.
- The Alternative Minimum Taxes changed – this will result in less people being subject to this extra tax.
- People which have had a reduced withholding, may result in additional taxes owed at the end of the year.
There are many more changes that may affect you.
We are here to answer your questions. Please contact Tony Marini or Rob Lynch for specific questions!
Telephone (781) 871-5850