March 20, 2001
Reprinted from The North Andover Citizen
By Sandra Bosco, Correspondent

Have you ever met an accountant with bounds of energy, a love of tax rules and a deep belief he can make a difference in the financial lives of his clients? If not, now is your chance to meet Mark W. Nichols, a licensed Certified Public Accountant with an extensive work and educational background who recently set up shop here in North Andover.

Mark W. Nichols, CPA, PC, is a professional corporation licensed to practice accounting in the Commonwealth of Massachusetts. Nichols offers clients sophisticated tax-planning strategies for reducing corporate, individual and estate taxes. He provides accounting and tax services to a wide variety of family-owned businesses and high net-worth individuals. His practice also includes the preparation of standard individual income-tax returns.

Although striking out on his own is new for Nichols, his knowledge of accounting is far from it. He has more than eight years experience in business assurance and taxation with PricewaterhouseCoopers, LLP, one of the industry's "big five" accounting firms. While there, he worked in auditing, then in tax and was part of a special group focused on advising family-owned businesses. He holds a Master of Science in Taxation, with Distinction, and a Masters in Business Administration, both from Bentley College. In addition, Nichols is a member of the American Institute of Certified Public Accountants and the Massachusetts Society of Certified Public Accountants.

"I left a large firm with a good salary to start my own firm," said Nichols. "That is how much I believe that I have something to offer." Nichols notes is is frustrating to leave your consultant's office with no better understanding of the issues facing you than when you entered, especially regarding taxes. He is committed to ensuring his clients leave his office with a clear picture of where they stand and how to plan for their future.

"I ask a lot of questions to find out as much as I can about my clients," Nichols said. "If I do not ask questions, then I am pushing the responsibility of knowing the tax laws onto my clients."

Nichols describes his style as consultative in nature. He said finding out all he can about his clients allows him to find the best tax result while crafting recommendations for future tax planning. For new clients, Nichols requests the prior year's tax return along with the proverbial shoebox.

"I don't want my clients to worry about how their records look," he explains. "It's my job to dig through and determine if items are significant of not."

Nichols goes as far as recommending setting up a tax tickler folder in an accessible spot where you can drop any item that you suspect could relate to your taxes in some manner. Add a bow to the folder and present it to him at tax time. In the end, clients can expect to receive a copy of their tax return in an easy to read, organized format.

Changing times

Beyond the standard income-tax return, Nichols eagerly pursues current tax issues facing corporations and individuals. Having worked with top professionals in accounting and taxation, he knows how to structure transactions to minimize the tax impact of the final outcome. He advises clients on issues such as the tax and cash flow impact of stock-based compensation, and how alternative minimum taxes may snare the unwary taxpayer. In addition, he helps clients with retirement planning and the use of 401(k)s, Roth IRAs, regular IRAs and other savings vehicles.

For businesses, Nichols provides consultation on entity planning. Whether you want to start a new venture or further develop an existing one, detailed entity planning can have a large impact on the taxation of a business's profits. Nichols guides clients in the structuring of various business ventures so as to take legal advantage of federal and Massachusetts income tax laws. He has lots of tax-saving advice for all types of business ventures, with some very powerful specific ideas for S-Corporations.

Nichols also provides consultation and planning to businesses on mergers and acquisitions, compensation packages, retirement plans, and gift and estate taxes. After tax season, Nichols hopes to offer seminars for new business owners and entrepreneurs, as well as individuals, on tax planning issues.

While talking with Nichols about his work, his enthusiasm spills out from his large hand gestures and warm smile. One client recommending Nichols to a friend said, "The more he talks about taxes, the more excited he gets!"

This passion to guide and educate clients through their financial life goes beyond the office walls. Nichols holds an adjunct professorship at Lesley University, where he teaches finance and accounting courses. Nichols has been nationally recognized at PricewaterhouseCoopers, LLP for his teaching in the firm's national training classes and for his essential role in the development of a national training strategy for this leading firm.

Nichols spent most of his childhood years in Andover and now resides in North Andover with his wife, Karen. His office is located on Rte. 114/ Turnpike Street.

March 15, 2002
Reprinted from The North Andover Citizen
By Craig M. Douglas, Correspondent

'Tis the Tax Season
Get Ready to stick out your tongue and grab your W2's

For those of you who cringe as the thought of going to either the doctor or the dentist, you can add one more local specialist to the list: meet North Andover tax practitioner Mark Nichols, the CPA with a sense of humor.

Is that even possible?

"I love this time of year," said Nichols, who inexplicably bubbles over when talking taxes. "Who am I? I'm your doctor. Everyone hates going, but you gotta go. I check your status. I tell you to lose weight. I tell you to floss..."

Well, no really. What Nichols does do is monitor the financial health and well-being of his clientele, while also providing the tax planning, form preparation, bookkeeping and business consulting services that have helped his business grow over the past year. As a former practitioner for PricewaterhouseCoopers and the owner of his own tax practice, Nichols' reputation as "the taxman with a bedside manner" has benefited the health of his business, allowing him to offer services to both private taxpayers and companies in the Merrimack Valley.

"As a business owner or an individual planning for the future, this time of year is so beneficial," Nichols said. "Besides, who doesn't love taxes?"

What to look out for in 2002

On June 7, when President George W. Bush gave his approval for a $1.35-trillion tax cut — the largest U.S. tax cut in the last 20 years — sweeping changes followed for private and corporate taxpayers alike. With 85 major provisions and 441 alterations to the nation's tax code, the changes are far-reaching and somewhat confusing for the average family or business owner.

"From personal income taxes to business-expense reductions, the the tax bill will affect just about everyone," said Nichols, who serves as an adjunct professor in accounting at Lesley University in Cambridge.

Overall, Nichols said taxpayers should be aware that there are key developments and exemptions in place for 2002. On a personal level, Nichols points out that annual gift exclusion amounts have increased by $1,000, with a ceiling of $11,000 per person in 2002. In addition, deductions for transportation, charity donations and other personal expenditures have been modified in the taxpayer's favor.

"In North Andover, so many people commute to and from the city and surrounding areas," Nichols said. "They should be — they NEED to be —aware of their eligibility for various exemptions."

Coupled with new stipulations for individual taxpayers, Nichols said he has also been actively advising self-employed business owners about deductions for health insurance, home-office expenses and car expenses — all of which, if properly managed, can add up to serious savings. In all scenarios, Nichols said proper records are essential in passing the IRS's internal "smell tests" — the first line of defense against an audit, in other words.

"That's why I began to offer bookkeeping services," said Nichols, whose accounting rates are customized to each customer's needs. "By having everything in proper order, my clients have seen savings materialize."

For families in North Andover, the new tax bill has also provided additional options for retirement and education planning. According to Nichols, contribution amounts for IRAs, 401(k) plans, 403(b) plans, and other qualified retirement plans will progressively broaden over the next five years, offering a number of attractive alternatives to the private investor. Additionally, Nichols said the amount of money eligible for education-related tax credits will double over the next year, allowing greater financial flexibility to people seeking post-secondary education degrees.

"The rules governing 529 plans have also been expanded," he said. "In some instances, people can, in one year, sock away up to $55,000 for their kid's education."

A man about town

Whether he is providing accounting services for a business, scheduling for someone's children's education, or advising a person on ways to a better retirement, Nichols said his goal is to stay on top of the changing tax landscape at both the state and federal levels. With two masters degrees as well as national recognition as a teacher in PricewaterhouseCoopers' training programs, Nichols believes his business is perfectly suited to handle the confusion resulting from last year's tax cuts.

"I force people to take stock of their personal finances," said Nichols, who grew up in North Andover and currently lives on Equestrian Drive with his wife, Karen. "Maybe you made more, or maybe you made less that what you had expected. But now you know. That's important when planning for the present and the future."

"Either way," he laughed, "you still get a lollipop on the way out."

 

138 River Road, Suite B-1 | Andover, MA 01810
tel: 978.685.1600 | toll free: 866.241.7614 | fax: 978.685.3200 | e-mail: mnichols@mwncpa.com

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