ABA: Proposed Tax Rules Could Overburden Law Firms - Articles

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Posted by: Brittany Sims on Jan 30, 2014

American Bar Association President James Silkenat sent letters to leaders of the House and Senate committees with tax oversight to warn that proposed changes to allowed accounting methods would overburden many law firms and other types of professional service businesses throughout the country, the Hamilton County Herald reports. Sections of the "Tax reform Act of 2013" would require all law firms and other personal service businesses with annual gross receipts of more than $10 million to use the accrual method of accounting rather than the traditional cash receipts and disbursement method of accounting. The ABA contends that the mandatory accrual accounting provisions in the draft House and Senate bills would create unnecessary complexity in the tax law, increased compliance costs and significant new financial burdens.