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Tax Cuts for Law Firms
With the compromise-laden Federal tax cut now law, what if any are the implications for law firms? Members of this newsletter's Editorial Board and several other recent contributors were asked to address that question.
Consultant Ed Poll's view seems to represent a consensus: For individual attorneys the changes effected by this tax law may be significant, but for law firms themselves the overall importance of the tax cut is minor.
That said, several provisions of the tax law do offer firms opportunities to reduce taxable income and, in some circumstances, opportunities for reduced taxation on compensation. It also appears that some problems could result from misguided attempts to take advantage of the tax cuts.
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