Tax Overhaul Bill Could Wreak Havoc On BigLaw

Law360, New York (February 11, 2014, 7:01 PM EST) -- Draft legislation in Congress requiring large law firms to switch to the accrual method of accounting would result in the nightmare scenario of firms borrowing money to pay federal taxes as well as uncertainty in fiscal and ethical responsibilities, tax experts told Law360.

The Tax Reform Act of 2013 requires all business entities — including personal service companies such as law firms — with annual gross receipts over $10 million to use the accrual method of accounting instead of the cash method, causing tax attorneys and...
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