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At first glance, law firms may assume the new Section 70202: No Tax on Overtime rules are irrelevant to them – but that could be a costly mistake. It’s part of the One Big Beautiful Bill Act, commonly referred to as the OBBBA or OB3, and it allows an above-the-line deduction for qualified overtime compensation…
Understanding how to properly source billable hours for tax purposes is crucial for law firms, particularly due to the varying rules across different states. The Washington Court of Appeals has clarified that litigation receipts should be sourced to the venue of the case, while consultation services should be sourced to the client’s location. This nuanced…
In today’s digital landscape, law firms are prime targets for cyber-attacks due to the highly sensitive client data they manage. To protect this information, maintain client trust, and comply with regulatory requirements, many firms are implementing and demonstrating robust security practices by undergoing regular SOC 2 examinations. These examinations or audits attest that controls are…
Succession planning is a critical aspect of any business, and law firms are no exception. The unique structure and client relationships in law firms make it essential to have a robust plan in place to ensure continuity and stability. It is imperative to understand the value of succession planning and how your firm can get…
Pennsylvania has embarked on a significant tax reform journey by reducing its corporate net income tax (“CNIT”) rate. This initiative aims to lower the CNIT rate from 9.99% to 4.99% by 2031. This reduction is part of a broader strategy to make Pennsylvania a more attractive destination for businesses, including law firms, by easing the…
The law known as the Tax Cuts and Jobs Act (“TCJA”) included some major changes to the Internal Revenue Code, but not all of them are here to stay. A number of significant provisions are set to expire after 2025, having significant impact on law firms, their employees, and their clients. Although Congress may act…
