ABA supports law firms’ use of cash method of accounting
As Congress explores ways to simplify the tax code, American Bar Association President William C. Hubbard sent letters to the leaders of the Senate Finance Committee and the House Ways and Means Committee urging them to reject any proposals that would require many law firms and other personal service businesses to switch from the simple cash method of accounting to the more complex and costly accrual method. The committees invited stakeholders to give their views, and the ABA expressed concerns that, if enacted, the proposals would cause substantial financial hardship to many lawyers, law firms, and other personal service businesses by forcing them to pay tax on “phantom” income they have not yet received and may never receive.
Although the ABA commends Congress for its efforts to craft legislation aimed at simplifying the tax laws, the ABA opposes proposals that would require all personal services businesses with annual gross receipts over $10 million to use the accrual method of accounting rather than the traditional cash receipts and disbursement method.
The ABA’s concerns over mandatory accrual accounting proposals are shared by many state and local bars throughout the country. Last year, a majority of House members and 46 Senators signed letters supporting cash accounting for small businesses and opposing mandatory accrual accounting proposals.
The ABA believes mandatory accrual accounting proposals would:
• Create unnecessary complexity in the tax law and increase compliance costs.
• Impose new financial burdens on many law firms and other personal service businesses by requiring them to pay taxes on income they have not yet received and might never receive.
• Cause the legal profession to suffer particular financial hardships, as many lawyers and law firms are not paid by their clients until long after the work is performed.
• Impede economic growth by discouraging law firms and other professional service providers from expanding or merging with other providers because it could trigger the costly accrual accounting requirement.
Michigan State Police holding women’s recruiting seminar
The Michigan State Police is hosting an informational recruiting seminar for women on Saturday, April 25. The event will begin promptly at 10 a.m. and will be held at the Troy Community Center, 3179 Livernois Road, Room 304.
Currently, the MSP is recruiting for the 129th Trooper Recruit School that will begin between Fall 2015 and Spring 2016. The minimum requirements for consideration of employment are as follows: an applicant must be of good moral character; a United States citizen; a Michigan resident at the time of appointment to the academy; at least 21 years of age; possess a high school diploma or G.E.D.; have a good driving record; possess a stable credit history; and no felony convictions.
Interested participants should email Trooper Marjorie Richardson at richardsonm2@michigan.gov. Please arrive by 9:45 a.m. The attire for this event is business casual.
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