“We are proud to welcome K&E and their talented group of executives with expertise in accounting, tax services, and financial planning,” said Dennis Pellecchia, chairman, president and CEO of Braver PC. “The addition of these new team members is yet another opportunity for us to expand upon Braver’s expertise in helping our clients throughout New England successfully grow their business.”

Six additional staff members will join Braver as part of the transition from K&E.  James R. Eggert, CPA, CMA and Daniel E. Kieliszak, CPA, JD will become principals in Braver PC.

“We look forward to expanding our service offerings to our clients from the additional depth and many resources offered by Braver” said Dan Kieliszak, new Braver PC principal.  “In turn, I believe we bring strong tax and business consulting skills to complement the Braver family of clients.”

“We are excited about the addition of K&E’s professional staff to our Providence office.  Both Braver and K&E have built reputations for providing great client service. By combining our professionals we will continue our commitment to client service” said James J. Prescott, Providence-based Partner of Braver.

About Braver

Braver PC provides accounting, tax, assurance, and business and tax consulting services to family-owned and privately held businesses, not-for-profit and governmental organizations, and individuals.  Braver brings together five service lines–accountants and advisors, wealth management, technology solutions, business strategies, and valuation–to support the evolving needs of businesses and organizations.

Headquartered at 117 Kendrick Street, Suite 800 Needham, Massachusetts, Braver PC one of the largest public accounting firms in New England, has offices in Needham, Boston, Concord, Taunton, and Providence.

Posted on: March 6, 2012

To attend, please contact msilverman@braverwealth.com

It is with profound regret that we announce the passing of Martin D. Braver, CPA, founder of Braver PC, on Saturday, October 22, 2011.

In honor and in recognition of Mr. Martin D. Braver, Braver PC will be closed on Tuesday, October 25, 2011.

Dennis S. Pellecchia, CPA, MBA, MSFP
Chairman, President, CEO
Braver PC

Funeral and Service Details:

http://www.legacy.com/obituaries/bostonglobe/obituary.aspx?n=martin-d-braver&pid=154247874&fhid=8784

Form 1099-MISC is an informational return used to report certain payments made in the course of a trade or business.

Under the old Form 1099-MISC rules if a business paid more than $600 in non-employee compensation, prizes or rent to any non-corporate entity during the year, the business was required to send that person or business a 1099-MISC. For example, if a business paid more than $600 during a calendar year to an independent contractor for services, the business must issue the contractor a Form 1099-MISC and furnish a copy to the IRS. Form 1099-MISC were also required for smaller payments such as at least $10 in royalties and at least $10 to a broker in lieu of dividends or tax-exempt interest.

The Small Business Jobs Act and the Patient Protection and Affordable Act in 2010 expanded the 1099 reporting requirements.

The Small Business Act included a provision requiring that individuals who receive rental income issue 1099-MISC forms to service providers for payments aggregating $600 or more during the year. For example, if you owned rental real estate and paid an individual $600 or more during the year to paint a rental property then you were required to report and issue a 1099-MISC to that individual.

The Patient Protection and Affordable Act contained two changes to 1099 reporting. The first change was to include payments to corporations. The second change was to include amounts paid to a single payee for property such as merchandise, raw materials and equipment.

For example, if a business spent $700 at an office supply store, it would have had to issue a 1099 to the office supply store. Just think of all the forms you would have to prepare and file. Payments that were greater than $600 were required to be reported on a 1099-MISC.

These two changes were enacted to generate income for the government. The IRS estimates that billions of dollars in tax revenue goes unreported each year and changing the 1099 reporting requirements would be one way to establish a paper trail and to hopefully close the tax gap.

The good new is that on April 14, 2011, President Obama signed the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (HR 4; 1099 Act), which repeals both the expanded Form 1099 information reporting requirements mandated by last years health care legislation and also the 1099 reporting requirements imposed on taxpayers who receive rental income enacted as part of last year’s Small Business Jobs Act.

As a result of the repeal, payments to corporations and payments made for purchase of property (merchandise, raw materials, and equipment) generally do not have to be reported.  Landlords with activities that amount to a trade or business continue to be required to report payments of $600 or more to service providers.

So today we are back to the old rules. A 1099-MISC is required when payments are made in the course of a trade or business. Non profit organizations are considered to be engaged in a trade or business and subject to the same reporting requirements.

A payer is engaged in a trade or business if it is operating for profit. A payer must file Form 1099-MISC once it pays a recipient.
• at least $10 in royalties,
• at least $10 to a broker in lieu of dividends or tax-exempt interest,
• $600 in rents,
• $600 for services, including parts and materials, purchased from someone in a trade or business,
• $600 in prizes and awards,
• $600 in other income payments,
• $600 in medical and health care payments,
• $600 in crop insurance proceeds,
• $600 in cash payments for fish or other aquatic life purchased from someone in the trade or business of fishing,
• $600 in cash paid to an individual, partnership or estate from a notional principal contract,
 any fishing boat proceeds,
• $600 in gross proceeds to an attorney.

Form 1099-MISC is also used to report direct sales of $5,000 or more of wholesale customer products to a buyer without a permanent retail store.
When a Form 1099-MISC is required, it must report:

• Total amount paid for the calendar year
• The name and address of the payee
• The taxpayer ID number (TIN) of the payee
• Contact information for the payer
• The payer’s TIN

If a 1099-MISC is required we recommend having the payee complete IRS Form W-9 before payment is made. Form W-9 will gather the required information needed to prepare 1099-MISC.

Failure to file 1099-MISC could result in penalties from the IRS. Penalties range from $30 to $100 per form not completed timely and correctly. If you are found to have intentionally disregarded the forms, the penalty is $250 per form and there is no maximum penalty.

Many people in the U.S. have foreign financial accounts. While there is nothing improper about setting up or maintaining such accounts, many people may mistakenly believe their accounts are not large enough on a combined basis to trigger reporting obligations. Foreign account owners may have to report their accounts to the government, even if the accounts do not generate any taxable income.

U.S. persons are required to file a Report of Foreign Bank and Financial Accounts (FBAR), Treasury Department Form TD F 90-22.1, each year if they have a financial interest in or signature authority over financial accounts, including bank, securities or other types of financial accounts, in a foreign country, if the aggregate value of these financial accounts exceeds $10,000 at any time during the calendar year.

For 2010, the due date for filing the FBAR is Thursday, June 30, 2011, though some financial professionals will have until June 30, 2012 to file. Unlike with federal income tax returns, requests for an extension of time to file an FBAR cannot be granted.

The FBAR is not an income tax return and should not be mailed with any income tax returns. It is due by June 30 of the year following the calendar year in which the aggregate value of the foreign accounts, on any one day, exceeds $10,000. But for 20009 and earlier years, the due date is generally Nov. 1, 2011 for individuals whose filing deadline was properly deferred under Notice 2009-62 or Notice 2010-23, and have no financial interest in a foreign financial account but with signature or other authority over that account.

FBARs are filed with the U.S. Department of the Treasury, P.O. Box 32621, Detroit, Mich. 48232-0621.

Civil and criminal penalties for non-compliance with the FBAR filing requirements are significant. Civil penalties for a non-willful violation can range up to $10,000 per violation. Civil penalties for a willful violation can range up to the greater of $100,000 or 50 percent of the amount in the account at the time of the violation. Criminal penalties for violating the FBAR requirements while also violating certain other laws can range up to a $500,000 fine or 10 years imprisonment or both. Civil and criminal penalties may be imposed together.

If you learn you were required to file FBARs for earlier years, you should file the delinquent FBAR reports and attach a statement explaining why the reports are filed late. No penalty will be asserted if IRS determines that the late filings were due to reasonable cause. Keep copies, for your records, of what you send. If, however, you have any unreported taxable income related to the foreign accounts, you should instead follow the procedures for making a voluntary disclosure to IRS under the 2011 Offshore Voluntary Disclosure Initiative.

The address for delivery of an FBAR by a method other than U.S. mail is: U.S. Department of the Treasury, Currency Transaction Reporting, 985 Michigan Avenue, Detroit, Mich., 48226.

The FBAR form is not available for electronic filing, but many income tax software packages can prepare a printed copy. FBAR forms and instructions are also available on IRS.gov or the Financial Crimes Enforcement Network website, FinCEN.gov, and by calling 1-800-829-3676.

Taxpayers who need assistance completing Form TD F 90-22.1 can contact the IRS by telephone at 1-800-800-2877, option 2, or via email at FBARquestions@irs.gov.

Source Information:  IRS Newswire Issue Number: IR-2011-70  

Posted June 27, 2011

Board Chairman Dennis S. Pellecchia has been unanimously elected by the firm’s Executive Committee to serve as the firm’s President and CEO.  Pellecchia will continue to hold his position as the firm’s Chairman of the Board.

Pellecchia succeeds Patrick B. Riley, who resigned as the firm’s Managing Director, President and CEO.  For nearly a decade, Riley has led Braver through a dynamic period of growth throughout New England, adding offices in Boston, Providence, Concord, MA, Taunton, and most recently relocating Braver’s home offices from Newton to the firm’s new headquarters in Needham.

Under Riley’s leadership, Braver PC grew its suite of professional services beyond assurance and tax practices, to include Braver Wealth Management, Braver Business Strategies, Braver Technology Solutions and Braver Valuation Services.

Riley will remain a key client service partner at Braver providing services in the national and international arenas. “I am very excited to resume my role as client advisor, driving the client service value we have created at Braver over the last eight years deeper into the marketplace,” said Riley.

Dennis Pellecchia joined Braver over 30 years ago and since then has developed specialties in real estate and partnership taxation and wealthy family tax practice, while also providing guidance to  companies in a diverse range of industries. Pellecchia, who formerly served as the Director of The Real Estate Tax and Accounting Practice Groups at Braver, provided clients with a wide range of services including accounting, audit, income tax planning and compliance, and management advice.

In an interview this afternoon, Mr. Pellecchia stated “On behalf of the Executive Committee and the entire shareholder group at Braver, I would like to take this opportunity to thank Patrick for all of his years of service as President, CEO and Managing Director. His vision positioned Braver with five lines of business that bring significant value to our clients and also positioned us to attract, not only the best and the brightest of talent, but also the best in clientele. I look forward to continuing to work with Patrick as he focuses on developing and leading our International Tax Practice Group. I would also like to thank the Executive Committee for the vote of confidence they have shown in me by unanimously electing me President and CEO. I look forward to working with them, and the entire shareholder group at Braver, as we continue to drive the value that our firm has developed by continuing to bring it to the marketplace and ensuring that our clients, as well as prospective clients, are aware of the value Braver brings to the table.”

Pellecchia holds a Bachelor’s degree in Accounting and Finance, Magna Cum Laude, and a Master’s degree in Business Administration, with a concentration in Taxation, from Babson College. He also holds a Master of Science degree in Financial Planning from Bentley College, Cum Laude. A member of the American Institute of Certified Public Accountants and the Massachusetts Society of Certified Public Accountants, Pellecchia also serves as a member of the Real Estate Committee of the Massachusetts Society as well as the Real Estate Finance Association. Pellecchia is a former Treasurer of the Boys and Girls Club of Medford and Somerville for over 20 years and presently serves on the Board of Medicine Wheel Productions, Inc., a public arts organization serving disadvantaged youths of South Boston. In addition, he is a member of the Beta Gamma Scholarship Society at Babson College and the Beta Gamma Sigma Honor Society at Bentley College. Pellecchia currently sits on the Advisory Board of Albert Risk Management and is also a member of the Board of the Men’s Golf Association at The Ferncroft Country Club.

Posted on: May 10, 2011

117 Kendrick Street, Suite 800
Needham, MA 02494

Our new place is a 22,000 sq.ft. space in an award winning office building adjacent to Cutler Lake in Needham, just one mile from Route 128.

*Our phone and fax numbers will remain the same

117 Kendrick Street, Suite 800
Needham, MA 02494

Our new place is 22,000 sq.ft. space in an award winning office building adjacent to Cutler Lake in Needham, just one mile from Route 128.

Come and visit us in our new home anytime!

*Our phone and fax numbers will remain the same

Published on: April 14, 2011

As a major economy, Japan supplies goods and services to many sectors of our economy and the larger world economy. The economic ramifications of this disaster will not be known for weeks or even months. A disruption of this magnitude and the accompanying uncertainty that it brings will keep volatility and anxiety high in the short term. So what do we do as investors?

First and foremost, we adhere strictly to our models and manage portfolios in the same disciplined manner as always. We do not overreact to media reports or make irrational short term trades. We analyze the facts, as they are available, and make prudent adjustments if appropriate across our various investment disciplines. Importantly, the majority of our investment strategies are computer model driven and do not factor in human emotion. Our models have been designed to analyze current market trends and react to the market’s momentum. For example, our Diversified program moved towards the safety of money market funds in early March and holds all cash at this point. Our computer models are run every morning and we adhere to the resulting decisions without emotion. This approach has served our clients very well over more than twenty years and we remain confident during the current period.

Our Asset Allocation and Dividend Income portfolios are the only strategies that we manage using fundamental analysis, which factor in subjective decisions by our investment team. In the Asset Allocation strategy, portfolios are highly diversified across a wide range of asset classes. This diversification is designed to dampen unforeseen volatility and shocks to the system such as the past week’s events in Japan. Rest assured that we continue to monitor these portfolios on a daily basis and will take prudent action should the conditions warrant a change.

It is helpful to view the recent volatility in a larger context. The equity markets have been on a very strong upward trend capped by six straight months of positive returns. Most analysts expected a modest correction to this upward pattern. The catalyst for the recent weakness has been the tragedy in Japan along with the geo-political events in the Middle East. In the short term, the events in Japan are emotionally and economically disruptive. However, once conditions stabilize and the focus moves toward rebuilding, the longer term effects are likely to be stimulative to the world economy. In the meantime, the U.S. economy continues to show modest recovery. Unemployment is declining and housing is stabilizing. We must separate natural disasters from financial disasters and remember that most natural disasters do not initiate long term financial declines.

We will be working diligently to navigate these rough short-term waters while keeping our focus on the long term.

As always, please call us with any questions.

Your Braver Wealth Management Team

Published on: March 18, 2011