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2007

Road Map For Success: Designing a Practice Group Business Plan That is Effective - December 2007
Practice groups realize they should be boosting their firm’s profitability. But they may not know how to get there. A business plan designed specifically for the particular practice group can serve as a road map, outlining goals, strategies and performance measurements. This article reviews the process of developing a practice plan.

Cover Your Bases: Succession Planning For Your Law Firm - December 2007
Transitioning leadership from one partner to the next takes more time than most law firms realize, especially if multiple partners will be retiring in a short period - a situation many firms are beginning to face as baby boomers start entering their 60s. A succession plan is important to ensuring your firm continues to operate as seamlessly as possible. Without such a plan your firm’s future is open to question, forcing you to make last-minute decisions. This article addresses key elements of a succession plan: leadership, client retention, compensation agreements and business development.

Increased Expensing for Asset Purchases - October 2007

The IRS has recently increased the Section 179 expensing deduction. It allows you to expense (rather than depreciate) the cost of depreciable assets (within certain limits) in the year you place them in service.

Start Budget Planning Now To Improve Profitability And Motivate Lawyers and Staff - October 2007
An annual budget of both revenues and expenses is the linchpin of management for almost every type of organization. It enables managing partners and management committees to plan their activities, set goals and measure actual performance. Without a developed budget, you’re just wondering how your practice will function and what you’ll earn.

To Merge or Not to Merge? Good Question! - October 2007
Merging is on the minds of many law firms these days. Merging can help the different parties achieve a competitive advantage and find a quick fix to a perceived need. But the process is often difficult, risky and expensive. This article takes a look at the right reasons and the wrong reasons for contemplating a merger. Discussion starts with conducting a SWOT (strengths, weaknesses, opportunities and threats) analysis to determine your firm’s needs and then how to construct a plan of action to go forth.

2006

Beginning Jan. 1, 2007, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) will be:
· 48.5 cents per mile for business miles driven;
· 20 cents per mile driven for medical or moving purposes; and
· 14 cents per mile driven in service to a charitable organization.

Qualified Pension Plan Contributions for 2007 -- October 2006

The IRS announced revised dollar limitations for pension plans and related amounts for calendar-year 2007.  Some amounts changed due to cost-of-living adjustments, while other changes were Code-required.  Included in this article are the contribution limits of particular importance for 2007.

Transition Relief for Section 409A -- October 2006

Section 409A was added by the American Jobs Creation Act of 2004.  Section 409A provides rather harsh penalties for failure to comply with certain requirements in connection with nonqualified deferred compensation plans.  The IRS provided guidance on December 20, 2004, under Notice 2005-1 and issued proposed regulations on October 4, 2005.  The preamble to the proposed regulations extended certain transitional guidance provided in Notice 2005-1, generally through December 31, 2006.  The proposed regulations set the effective date of the final regulations at January 1, 2007.  Although Treasury and the IRS expect to issue final regulations in 2006, the Treasury and IRS felt that this was insufficient time for taxpayers and their representatives to analyze the final regulation and come into compliance by January 1, 2007.  Accordingly, Notice 2006-79 was issued on October 4, 2006, extending the effective date for the final regulations to January 1, 2008.

Final Regulations: Reporting of Gross Proceeds Payments to Attorneys
This article contains final regulations relating to the reporting of payments of gross proceeds to attorneys. The regulations reflect changes to the law made by the Taxpayer Relief Act of 1997 (1997 Act). The final regulations will affect attorneys who receive payments of gross proceeds on behalf of their clients and will affect certain payors (for example, defendants in lawsuits and their insurance companies and agents) that, in the course of their trades or businesses, make payments to these attorneys.

E-billing: Coming Soon to a Firm Near You
Most invoices for legal services still arrive the old fashioned way - by snail mail. But a growing number of clients are requesting that their bills arrive via specialized e-billing systems designed for corporate law departments to interact with outside legal counsel. In fact, a 2004 Association of Corporate Counsel survey found that, while electronic billing was being used in only 6% of the law departments surveyed, 28% were considering the move to e-billing.

What’s the Worst that Could Happen?
For businesses, lack of planning could be the greatest disaster
Last year’s Hurricane Katrina served as a graphic example of how a single natural disaster can affect a broad range of industries, from oil drilling to retailing. And it prompted many business owners to take disaster planning more seriously. As we head toward the one-year anniversary of that tragic event, let’s examine why disaster planning is (still) important and look at some of the big-picture issues you’ll need to consider in this area.

Measuring Profitability -- September 2006
How to allocate expenses fairly and consistently
Any discussion of partner compensation will include an “aside” on how best to determine an individual partner’s contribution to profitability. It stands to reason that the higher the contribution to overall profitability, the higher that individual’s compensation.This means measuring not just billing, or even realization, but also expenses. Unfortunately, determining the costs incurred by individual attorneys can be a slippery slope. Dividing total expenses by the number of attorneys won’t provide an accurate answer. Conversely, tracking every expense associated with each individual attorney would be cost prohibitive.

Is it Time to Hire a Sales Professional? -- September 2006
Although most companies rely on their sales professionals to bring business in the door, sales positions have been slow to emerge at most law firms. But that’s starting to change. Normal client attrition, combined with the ever-increasing squeeze on profits and increased competition, has more law firms bringing in sales professionals. But before you run out and hire one, you should examine the decision from every angle.

Final Regulations: Reporting of Gross Proceeds Payments to Attorneys -- September 2006
This article contains final regulations relating to the reporting of payments of gross proceeds to attorneys. The regulations reflect changes to the law made by the Taxpayer Relief Act of 1997 (1997 Act). The final regulations will affect attorneys who receive payments of gross proceeds on behalf of their clients and will affect certain payors (for example, defendants in lawsuits and their insurance companies and agents) that, in the course of their trades or businesses, make payments to these attorneys.

E-billing: Coming Soon to a Firm Near You -- September 2006
Most invoices for legal services still arrive the old fashioned way - by snail mail. But a growing number of clients are requesting that their bills arrive via specialized e-billing systems designed for corporate law departments to interact with outside legal counsel. In fact, a 2004 Association of Corporate Counsel survey found that, while electronic billing was being used in only 6% of the law departments surveyed, 28% were considering the move to e-billing.

What’s the Worst that Could Happen? -- September 2006
For businesses, lack of planning could be the greatest disaster
Last year’s Hurricane Katrina served as a graphic example of how a single natural disaster can affect a broad range of industries, from oil drilling to retailing. And it prompted many business owners to take disaster planning more seriously. As we head toward the one-year anniversary of that tragic event, let’s examine why disaster planning is (still) important and look at some of the big-picture issues you’ll need to consider in this area.

Don’t Wait Until It’s Too Late -- April 2006
Develop good cash flow management techniques now

Implementing sound cash flow strategies isn’t difficult, and having them is essential if you want to avoid cash emergencies. This article discusses nine of the most effective techniques that firms of almost any size can implement. For example, simple things, like getting a retainer for every matter, will help your firm build up a fund to pay out-of-pocket expenses such as travel costs, filing fees, court reporters and expert witness fees.

How to Raise Your Rates and Not Lose Clients -- April 2006

Billing rates are affected by many factors, including salaries, overhead costs, market rates for similar services and the public perception of the value of your firm’s work. This article explores the art of raising your rates and still retaining your best clients. Besides receiving more dollars for every hour of billable time, raising rates will help your firm clean out “deadwood,” that is, clients that are slow or difficult payors. An informative sidebar discloses recent survey results posted by the National Law Journal on billing rates around the country.

Bringing Industry Teams to Your Law Firm -- April 2006

If your law firm is still structured around practice groups with functional expertise such as intellectual property, litigation or corporate law, you’ll want to read this article. That’s because it discusses a growing trend among law firms of moving to more of a client-centric structure through industry teams. The article explains how industry teams should work and how to get the ball rolling in your firm.

The Grapes of Roth 401(k)s: New retirement vehicle may bear fruit for some -- April 2006

The 2001 tax law planted the seeds for an attractive new retirement planning option: the Roth 401(k) plan. Beginning in 2006, after a five-year wait, employers are finally able to offer these plans. But who should pluck one from the vine and who should move on to a different variety depends on a number of factors, and the question is irrelevant, of course, if your employer chooses not to offer a Roth 401(k).

A Winning Formula: Buy-sell agreements and life insurance bring peace of mind -- April 2006

As a business owner, your tendency may be to focus on today’s headaches. But you still need to think about tomorrow’s. For instance, what would happen to your company if you weren’t around to run it? Retirement may be years away. But disability and premature death can set into motion adverse events for your company and family — unless you’ve considered your options much earlier. That’s why a sound buy-sell agreement, typically funded by life insurance, is a winning formula for preserving your business and your family’s financial future.

2005

Using Sales Analysis To Chart Your Firm’s Future -- December 2005
Without planning, your firm’s decisions tend to be based on reactions to events and erroneous assumptions. Without planning, you cannot hope to run your firm like a business, prepared for the future as well as reaping the benefits of the present good economy. A sales analysis can be an effective tool in your firm’s long-range planning. Based on the past performance of its major clients, partners and practice areas, your firm can project what it expects to do in the future.

The 10 Most Common Mistakes Law Firms Make -- December 2005

Whether your firm is humming along at a profitable pace or has already hit some rocky spots, it undoubtedly can still improve in some areas. Here are 10 of the most common mistakes law firms make in managing their practices.

Are You in Deep with the Alternative Minimum Tax (AMT)? -- December 2005

Like mountain climbers reaching a great height, business owners should recognize year end as a sort of vista — the ideal place from which to reflect on the events of 2005 and look ahead to 2006. As the calendar winds down, review your business’s financial performance so far this year as well as your projected income and expenses for the coming year.

Lease or Buy?
Moving or expanding your business prompts a critical choice -- December 2005

Whether you’re in dog grooming or digital engineering, the physical location of your business is undeniably important. If you’re planning on moving your operations or expanding them into a new facility anytime soon, the choice between leasing and buying will inevitably come into play. It’s still common for companies to lease from a property developer or landlord, as this arrangement allows you to use your cash to grow your business rather than sink it into a potentially costly building. But you shouldn’t dismiss ownership, either — it offers advantages business owners often overlook.

Corporate Life Insurance in Redemptions -- December 2005

Clients may mistake the contractual price set in a buy-sell agreement as the value for filing Small Business/Self-Employed Form 706, U.S. Estate Tax Return, for a deceased owner. If the value is based on a formula price rather than the standard of fair market value, the value may not be acceptable for estate or gift tax purposes. A buy-sell contract may not impose a binding value for federal estate tax purposes. If an agreement fixes the value of a decedent’s interest and the estate is redeemed for that price, the IRS can challenge the amount and assess estate tax on fair market value, which may be higher than the contractual buy-sell amount. A recent case in which this has happened is the Estate of George C. Blount v. Commissioner, TC Memo 2004-116.

Standard Mileage Rates Increased for Final Four Months of 2005 -- September 2005

The IRS has increased the mileage rate for the business use of a car, to 48.5 cents per mile, effective September 1, from the 40.5 cents per mile set back on November 17, 2004 (Rev. Proc. 2004-64).  This 20% increase pales in comparison to the 60% increase in the retail price of a gallon of gasoline (regular grade) from $1.91 to today's $2.89. 

Strategic Planning; Why It’s the Smart Thing to Do -- October 2005

Say the words, “strategic planning,” and many attorneys will head for the nearest door. But committed firms that can make it through the process and successfully implement their plan will achieve an exponential return on the time spent. While planning doesn’t guarantee success, firms that do plan have a greater probability of success than those that only respond to the crisis of the day. This concept was articulated by the late Dr. Albert Shapiro of the Ohio State University Graduate School of Business, “Companies that plan never follow their plans, but they always make more money than companies that don’t plan.” See the full article for five steps to developing your own strategic plan.

Enjoy the View; Year End the Ideal Vista for Business Tax Planning -- October 2005

Like mountain climbers reaching a great height, business owners should recognize year end as a sort of vista — the ideal place from which to reflect on the events of 2005 and look ahead to 2006. As the calendar winds down, review your business’s financial performance so far this year as well as your projected income and expenses for the coming year. Armed with this information, you may be able to reduce your overall tax liability by shifting income and deductions between 2005 and 2006.

Planning the Firm Retreat -- October 2005

Firm retreats can be milestone events or a two-day party. They can be held in a local hotel conference room or in Las Vegas . How do you determine what's right for your firm? Here’s your step-by-step guide to planning a successful firm retreat.

Ensuring a Successful Partner Compensation System -- October 2005

As long as there are partners, there will be problems with partner compensation. Issues surrounding “fair” compensation can do more to fracture partnerships and generate more negative feelings than almost any other firm issue. A compensation system should be more than just a way of splitting up the money: A good system is a management tool that rewards, motivates, changes behavior and disciplines.

Practical Perspectives: Key Financial Issues for You and Your Family -- October 2005

Employers, Oliver and Georgina , initially felt a little overwhelmed by all of the responsibilities of having a household worker, so they entertained the thought of paying their housekeeper “under the table.” Wisely, they listened to their financial advisor, who advised that the risk of penalties, interest and public embarrassment greatly outweighs any time and money they might save.

Mid-Year Tax Planning Strategies -- August 2005
Strategies for both Individuals and Businesses
As you probably know, two major tax laws were enacted at the end of 2004. You may be familiar with some of the new tax rules, but now is a good time to see if there were any goodies for you, and, if so, what you need to be doing to take advantage of them.

Performance Evaluations -- August 2005
Making Performance Evaluations More Effective
Most managers - senior partners included - dread the words “it’s evaluation time.” Nothing is more important, however, to the professional development of your firm’s attorneys than an effective mentoring and evaluation program that provides associates with a continuous stream of performance feedback.

Getting Associates to Think Like Business Owners -- August 2005
Industry consultants and managing partners estimate it takes three to five years for a firm to break even on the investment in a new associate. And with starting salaries at many large firms now topping $100,000, the profitability of each associate is more important in an individual’s career sooner than it ever has been. Getting associates to realize how they impact your firm’s bottom line can actually be a positive thing.

Case: Attorney Can Lease Equipment to Law Firm -- August 2005
An attorney who leased equipment to his wholly owned C corporation law firm could deduct losses generated by the lease activity because (1) he engaged in the leasing business for profit, rather than as a hobby, and (2) the leasing activity was not subject to the passive activity loss limitation rules because it was incidental to a nonrental activity.

Bankruptcy Abuse, Prevention and Consumer Act -- August 2005
On April 20, 2005 President Bush signed into law the Bankruptcy Abuse, Prevention and Consumer Protection Act of 2005. This act was originally introduced in the Clinton administration and has died many times and now has been enacted and contains sweeping bankruptcy reform. Only a few provisions of the new act will impact ordinary estate or assets protection planning. However, where it does affect planning, the effect is quite dramatic.

FORM 1099-MISC -- January 2005
Forms 1099-MISC must be furnished to the recipient no later than January 31, 2005.
FORMS 1099-MISC are required to be filed in the following instances:

1. For each person paid at least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest

2. For each person paid at least $600 in rents, services, prizes and awards or other income.

3. For gross proceeds paid to an attorney.

4. If you have withheld any federal income tax under the backup withholding rules regardless of the amount of the payment.

Please see the full article for which payments are exempt from the requirements to file Form 1099-MISC and more information.

To Merge or Not to Merge? Good Question! -- May 2005
Merging is on the minds of many law firms these days. Merging can help the different parties achieve a competitive advantage and find a quick fix to a perceived need. But the process is often difficult, risky and expensive. This article takes a look at the right reasons and the wrong reasons for contemplating a merger. Discussion starts with conducting a SWOT (strengths, weaknesses, opportunities and threats) analysis to determine your firm's needs and then how to construct a plan of action to go forth.

Legal Fees - When are They Deductible? -- May 2005
The tax law does not specifically mention legal fees as deductible items. Therefore, the deductibility of such expenditures depends on the context in which they are incurred. The absence of specific provisions for legal fees in the Code has resulted in many interesting and important developments concerning their deductibility.

Roth Contributions to 401(k) Accounts -- May 2005
Roth contributions will allow employees to designate part or all of their 401(k) employee deferrals on an after-tax basis, in which case the later distribution of those amounts plus earnings thereon will be tax-free. Although Roth contributions are not effective until tax years beginning after 12/31/05, many plan sponsors may want to amend their plans and establish procedures for administering these accounts. Refer to the Full Article for proposed revisions issued to Reg. 1.401(k)-1(f) (see REG- 152354-04) that define designated Roth contributions and provide special rules for such contributions.

Nonqualified Deferred Compensation Plans -- May 2005
Last fall, a new law was enacted that has brought sweeping changes to the rules governing how nonqualified deferred compensation (NQDC) plans are taxed. The American Jobs Creation Act of 2004 added Section 409A to the Internal Revenue Code. The new law includes significant changes to the elections and distributions of NQDC plans. It also affects bonus deferrals and partnership interests received for services and several aggressive funding mechanisms. And it redefines NQDC plans to include arrangements such as supplemental executive retirement plans (SERPs), restricted stock units, stock appreciation rights (SARs) plans and, in some cases, severance agreements. 

Massachusetts Capital Gains Update -- May 2005
"As some of you may recall, the Massachusetts Legislature increased the capital gains tax in 2002.  The effective date of this increase was May 1, 2002, such that many sales prior to that date were taxed at much lower rates and, in many cases, not taxed at all.  However, a lawsuit ensued where a group of investors argued that the effective date of the new law was unconstitutional because it resulted in a change in tax rates during the year.  The Supreme Judicial Court recently ruled that the effective date of the statute was unconstitutional leaving a choice to the legislature to make the new law retroactive to January 1, 2002, or delaying its effective date to January 1, 2003.  It is estimated that making the change retroactive will increase revenue by $160 million while delaying the effective date will result in tax refunds of approximately $275 million."

New Massachusetts Law Changes Landscape of Independent Contractors, but Leaves Many Questions Unanswered -- January 2005 
The Massachusetts Legislature has complicated the already thorny issue of independent
contractor status. Recent amendments to state law may make it even more difficult to hire workers as independent contractors. These amendments make clear that workers may only be classified as independent contractors under Massachusetts law if they meet a rigid three-factor test that is more difficult to satisfy than the traditional common law test or the Internal Revenue Service’s well-known Twenty Factor Test. These amendments apply to both private sector employers and governmental entities.

What Partners Need to Know About Firm Capitalization -- January 2005
Partners’ capital contributions fund a firm’s day-to-day operations and are crucial to its long-term success. This short article explains what capitalization is and why it’s important that a firm never become undercapitalized.

Attorney's Contingent-Fee Includable in Plaintiff's Gross Income -- January 2005
Successful litigants, one who based his action on employment discrimination, and the other who alleged wrongful discharge, were required to include in gross income the total amount of their respective settlement funds, including the amounts paid to their attorneys pursuant to contingent-fee agreements. The Supreme Court applied the anticipatory assignment of income doctrine, which precludes an individual from excluding an economic gain from income by assigning the gain in advance to another person. The litigants' argument that the anticipatory assignment doctrine is a "judge-made antifraud rule" and does not apply to contingent-fee arrangements was rejected. The Supreme Court looked to who maintained control over the income-generating asset and reasoned that in a litigation matter the income-generating asset is the cause of action based on the plaintiff's legal injury and control rests with the plaintiff.

Get Back to Basics and Maximize your Firm’s Profitability -- January 2005
Financial difficulties are afflicting a growing number of firms. But there are simple steps firms can take to maximize profitability despite increased competition, rising business costs and heavier regulations. These include developing a business plan, maximizing attorney productivity and selecting clients more carefully.  

Is Your Firm’s Retirement Plan Adequate? -- January 2005
Insufficient retirement funding affects a law firm, threatening its growth and survival. Partners have depended heavily on firm payouts for retirement. Many firms use 5% to 20% of current profits for retirement payouts. Decreasing availability of funds will likely accelerate as baby boomer partners retire over the next 20 years. And firms will have difficulty quickly replacing the substantial revenue retired rainmakers brought in.

Use Tax Filing – Year End 2004
The use tax attempts to mirror the in-state sales tax in order to deal with the taxation of interstate sales made by out-of-state vendors. Massachusetts and other states are focusing their attention on this area to generate additional revenues. Please be aware that steps should be taken to assess the use tax in order to avoid possible state action. The annual use tax form is due January 20, 2005 for 2004.

Payments to Attorneys - Form 1099-MISC – Year End 2004
Proposed Regulation §1.6045-5, Information Reporting on Payments to Attorneys, was issued and although it has not been finalized, the IRS has stated that these regulations may be relied upon to provide a safe harbor for interpretation of the statute. 

According to these regulations, every payor engaged in a trade or business who, in the course of that trade or business, makes payments aggregating $600 or more during a calendar year to an attorney in connection with legal services (whether or not the services are performed for the payor) must file an information return for such payments. Read the Full Article for Special Rules, Exceptions, and Examples.

New Client Funds and IOLTA Rules – Year End 2004
The Massachusetts Supreme Court issued revisions to Rule 1.15, Safeguarding Property, specifically relating to Client Fund Accounts (including IOLTA Accounts) affective July 1, 2004. Significant changes to the rules included requiring that bank accounts are reconciled at least every 60 days, and the requirement to maintain a separate ledger of Bank Charges.

Massachusetts Businesses are Now Required to Appoint a Resident Agent – Year End 2004
As of July 1, 2004 the Massachusetts Business Corporation Act took effect. Every 
Massachusetts corporation including non-profit and professional corporations has to provide the Secretary of the Commonwealth of Massachusetts the name and address of a resident agent even if the corporation has an office in Massachusetts. If you haven't already appointed a resident agent, a resident agent is appointed by adopting Director's Resolutions naming the resident agent and by filing a Certificate of Appointment of Resident Agent with the Secretary of the Commonwealth's Office. It is recommended that these filings be done as soon as possible to avoid incurring a fee or penalty when filing with the Secretary of the Commonwealth's Office.

Required Withholding by States on LLCs, LLPs and Limited Partnerships – Year End 2004
More states are requiring LLCs, LLPs and limited partnerships (limited liability entities) to withhold state income tax on the nonresident's share of the entities income. See the Full Article for a chart showing the 28 states that currently require withholding. Some states may assess the tax against the entity if the nonresident does not remit the appropriate state income tax. Also listed are states that impose a tax or fee at the entity level. 

Abandoned Property Annual Report – Year End 2004
The Massachusetts Abandoned Property Law (M.G.L.C. 200A) requires business entities and others to review their records each year to determine whether they are in the possession of any unclaimed funds, securities or other property. Any debt or obligation which has gone unpaid or security that has remained undelivered for three or more years after the date the owner should have received it or was entitled to claim it must be reported and paid to the Commonwealth of Massachusetts Treasury Department. An annual report is required even if no abandoned property is being held.

Matching Contributions on Catch-Up Contributions -- December 2004
Additional salary reduction catch-up contributions:
The House bill provides that the otherwise applicable dollar limit on elective deferrals under a section 401(k) plan, section 403(b) annuity, SEP, or SIMPLE, or deferrals under a section 457 plan are increased for individuals who have attained age 50 by the end of the year. For more information regarding Additional contributions and Catch-Up contributions, please visit the Full Article.

Pension Plan Limits for Individuals -- December 2004
Visit the full article for more detail on Pension Plan Limits for Individuals including but not limited to:

• Elective Deferrals

• Age 50 Catch Up

• Limit on Defined Benefit Plan

• Limit on Covered Compensation

• Maximum IRA Contributions
  

Is There a "New 401(k) Plan?" -- December 2004
Some clients specifically may have asked about the "new type of 401(k) plan" or what has been referred to as the "Solo 401(k)." It is not really a new plan created under the Code or by recent legislation, it is a product of clever marketing by brokers, banks, insurance companies, and some practitioners who are trying to "sell" the idea of a 401(k) plan to sole proprietors or sole owners of corporations who do not have employees.

When are Disability Benefits Taxable -- December 2004
The IRS issued Revenue ruling 2004-55 on June 9, 2004 stating that, long-term disability benefits received by an employee who has irrevocably elected, prior to the beginning of the plan year, to have the coverage paid by the Employer on an after- tax basis for the plan year in which the employee becomes disabled are attributable solely to after-tax employee contributions and are excludable from the employees gross income under §104(a)(3).

Health Reimbursement Arrangement Plans -- December 2004
We wanted to inform you of a new simplified method of covering your employee's out of pocket medical expenses (such as co-payments, prescription and non-prescription drug costs, etc.) by using what is referred to as a" Health Reimbursement Arrangement" (HRA).An HRA is a plan through which the Company agrees to reimburse it's employees for substantiated medical expenses without funding for full medical coverage.

Year End Payroll Issues -- December 2004
December is the month to determine employees' additional income for payroll purposes. These additions should be reported to the payroll service before year end. Typical adjustments include payments for the following:

• Educational Assistance

• Qualified Transportation Expense

• Unsubstantiated Business Expense Reimbursements

• Personal Use of Auto

• Group Term Life Insurance

• S Corporation Health Insurance

• Certain Disability Insurance

Department of Labor - FairPay Overtime Initiative Effective August 23, 2004 --December 2004
All US employers need to comply with new wage rules established by the Department of Labor earlier this year. You are affected if you employ: people who make more than $100,000 annually, people who make less than $23,600 annually, or if people who are registered workers of the US government. Read the Full Article for the Department of Labor's online "Fact Sheet."

Depreciation Update -- November 2004

Visit the full article for more detail regarding depreciation updates that pertain to the following:

• Qualified Leasehold Improvements

• Non-Qualified Leasehold Improvements

• Bonus depreciation expiration of December 31, 2004

• Code Section 179: Expensing Limits Extended

• Depreciation for Sport Utility Vehicles (SUVs)

Changes in Treatment of Nonqualified Deferred Compensation Plans -- November 2004 

The American Jobs Creation Act of 2004 made changes to the treatment of nonqualified deferred compensation (NQDC) plans that may result in the inclusion of deferred compensation in gross income. It is important that you review all of your deferred compensation plans to determine whether any amendments or other action to your plans are necessary.

Massachusetts Electronic Filing Requirements -- November 2004
A business filing entity must register for the E-file program. There is a penalty for failure to file, report or pay electronically. Failure to use the electronic method will be deemed a failure to file. Read the full article to find out your Electronic Filing Requirements.

Massachusetts Tax Legislation Approved -- November 2004

Recent amendments in Massachusetts Tax Legislation have been made regarding corporate excise (income) tax, personal income tax, sales and use tax, property tax, and other tax provisions to close tax loopholes and improve tax administration and collection. Among the highlights of the amendments are the following:

• Corporate Excise (Income) Tax Changes

• Personal Income Tax Changes

• Sales and Use Tax Changes

• Property Tax Bill Changes
  

Records for Other People's Money - October 2003

As a result of amendments to Mass. R. Prof. C. 1.15, new requirements for keeping records of money that lawyers hold for clients or others take effect on January 1, 2004. This article is from the October 20, 2003 issue of Massachusetts Lawyers Weekly, written by Daniel C. Crane, Bar Overseer (32 M.L.W. 391)

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