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Law Firms News


01/20/2017

Focus on Law Firms: Tax Implications for New Partners


The end of the calendar year usually coincides with law firms announcing partner promotions. When law firms are structured as partnerships, newly promoted partners can expect their tax situation to change for the 2017 filing year. For tax purposes, the partnerships report the firm income and the income “flows through” to the individual partners of the firm.

10/25/2016

Focus on Law Firms: 10 Ways Employees Can Steal from Your Law Firm and How Data Analytics Can Help You Detect Fraud


Every year, organizations lose an estimated 5% of revenue to fraud. While fraud can never be completely eliminated, controls can be implemented to drastically reduce the chance of fraud in your firm. Establishing a strong ethical culture and a zero tolerance policy for fraud is a good first line of defense. This culture can be supported through strong written policies and internal processes that embrace best practices and strong preventive controls.

07/25/2016

Focus on Law Firms: Law Firm Merger Activity – An Update


For an increasing number of law firms, the pursuit of mergers and acquisitions has become a primary strategy for continued growth. Across the country, law firm leaders are finding that the demand for law services is flat and there was a record number of deals in 2015 as a result of heated competition among firms for new work.

06/23/2016

Focus on Law Firms: Managing Law Firm Fraud Risks - An Internal Control Checklist


Although the majority of employees are honest, a trusted employee will steal when three elements exist: pressure, opportunity and rationalization.

04/14/2016

Focus on Law Firms: American Bar Association Opposes Proposal that Would Require Law Firms to Adopt Accrual Basis of Accounting


In a letter dated April 13, 2016, the American Bar Association (ABA) President Paulette Brown addressed the leaders of the House Ways and Means Subcommittee on Tax Policy. In the letter, she voiced opposition to the proposals that would require professional services firms to adopt the accrual basis of accounting as opposed to the more widely used and simpler cash basis method.

03/28/2016

Focus on Law Firms: Professional Corporations and Shareholder Compensation


A recent tax court decision was handed down to a law firm operating as a professional corporation (P.C.) in which the IRS held the firm liable for accuracy-related penalties for mischaracterizing payments made to shareholders. The firm initially paid amounts to shareholders and characterized them as year-end bonuses, the IRS argued they should have been classified as dividends. These dividends would have been taxable to the shareholders as well as not deductible by the corporation.

01/20/2016

Focus on Law Firms: Tax Implications for New Partners


The end of the calendar year usually coincides with law firms announcing partner promotions. When law firms are structured as partnerships, newly promoted partners can expect their tax situation to change for the 2015 filing year.

11/23/2015

Focus on Law Firms: The Current State of Law Firm Cybersecurity


A survey conducted by the American Bar Association (ABA) finds that attorneys are reporting more instances of security breaches within their information technology systems.

10/19/2015

Focus on Law Firms: The Growing Trend of Law Firm Mergers


In 2013, there were 88 mergers of law firms in the U.S. and that was the most on record at the time. Nearly two years later, law firm mergers and acquisitions continue at a record pace.

06/08/2015

Focus on Law Firms: Ransomware is on the Rise


Ransomware is increasingly targeting law firms and the number of victims around the world is growing. Recent news articles state more than 600,000 victims worldwide have been infected.

01/09/2015

Focus on Law Firms: Tax Implications for New Partners


The end of the calendar year usually coincides with an important time in many law firms – partner promotions. In law firms structured as partnerships, newly promoted partners can expect their tax situation to change for the 2015 filing year. This is primarily due to the way partnerships report income and how the income “flows through” to partners of the firm.

11/04/2014

Focus on Law Firms: Recouping Investments in Your Information Technology Department


Increasing information security of sensitive data is a topic that is resonating throughout the legal profession. The growing rate of attorneys electronically transmitting and maintaining sensitive information increases a law firm’s risk surrounding its information security and controls. This risk factor is becoming a principal concern within the legal profession.

09/08/2014

Focus on Law Firms: Tangible Property Regulations – Time for Action


All taxpayers that have capital expenditures or incur repair and maintenance costs will be impacted by the Tangible Property Regulations that go into effect for tax years beginning on or after January 1, 2014.

07/03/2014

Focus on Law Firms: Considerations for a Successful Law Firm Merger


Although most studies suggest 70% to 90% of mergers and acquisitions fail to reach their goals, recently there has been a wave of mergers and acquisitions among law firms in an effort to achieve various strategic objectives.

07/08/2013

Focus on Law Firms: New Trust Account Rules


On October 30, 2012, the Missouri Supreme Court amended Rule 4-1.15 regarding duties related to the safekeeping of property.

01/12/2011

UPDATED! Focus on Law Firms: Unlimited FDIC Insurance Coverage For IOLTA In Jeopardy


Many law firms maintain Interest on Lawyers Trust Accounts (IOLTA) on behalf of their clients.

Through December 31, 2010, these accounts receive unlimited FDIC insurance coverage if held at financial institutions participating in the FDIC’s Transaction Account Guarantee (TAG) Program.