Tax Law

Puff, puff, pass up your deductions.

An emerging industry that can provide hundreds of thousands of jobs is being held back by these crazy tax rates. We’re like any other small businesses, that just happens to be illegal in some states.

Betty Aldworth, deputy director of the National Cannabis Industry Association, commenting on a provision of the tax code that’s preventing those in the medical marijuana industry from taking standard business deductions, and forcing them to pay tax rates of up to 75 percent.

* Antonin Scalia thinks the State of the Union is a “childish spectacle.” I mean, if it was so important, the Founders would have put it in the Constitution, right? [New York Daily News]

* Does your son or daughter want to be Barack Obama when they grow up? Here are complete instructions to building your own play drone! [Volokh Conspiracy]

* Snickers bars are not tax deductible? Damn you H&R Block!!! [Tax Prof Blog]

* Yesterday I mused about needing a ranking for the rankings. PrawfsBlawg points out that there is such a ranking. My dreams of glory are dashed yet again. [PrawfsBlawg]

* It turns out recruiters are just as unimpressed with your legal research skills as your non-law friends. [Monster]

* Allegedly, Nestle’s does not play well with others. [Courthouse News Service]

* Is it just me or is giving the Republican response like being named the Madden cover athlete? Now let’s all watch Marco Rubio realize he needs water in super slow motion. [Deadspin]

Justice never sleeps… except during Obama’s SOTU addresses.

* “You just sit there, looking stupid.” The justices of the Supreme Court aren’t required to show up and look like “potted plants” at the State of the Union address, but some of them do every year. [CNN]

* Well, thanks to the DOJ’s fraud lawsuit filed against ratings agency Standard & Poor’s, it’s starting to look a lot like a litigation gang bang up in here as far as the states are concerned. [Bloomberg]

* Dewey know whether D&L’s retirees are still kicking (legally speaking) or if they’ve decided to send their claims to hospice? We certainly do, and we’ll have more on this later. [Am Law Daily]

* That “death and taxes” thing may be true, but when you’re trying to navigate the U.S. tax code as a married same-sex couple and the government won’t even recognize your union, there’s an uncomfortable air of uncertainty. [New York Times]

* “Have we seceded already? The execution is faster than I thought.” Guess which state in the Deep South accidentally raised a Confederate battle flag over the building that houses its Supreme Court. [Clarion-Ledger]

* Mama said knock you out: if you’re trying to figure out how to get a job after graduating from New England Law School, moonlighting as a champion boxer will help you beat down the competition. [Boston Herald]

When it comes to the employee benefit known as “tax equalization for same-sex health benefits” (aka the “gay gross-up”), maybe the pertinent question should be which firms don’t offer it. Since our recent write-up, we’ve heard about more leading law firms that offer this perk, taking the total number of firms that have it to more than 40. (The new firms are mentioned below.)

So let’s move on to the next front, which we also alluded to in our prior post: adoption and surrogacy-related benefits. They’re not nearly as common as tax equalization for same-sex health benefits, but a handful of firms appear to offer them.

Let’s find out which ones, shall we?

UPDATE (2/8/2013, 1:00 AM): A noteworthy update about the legal status of surrogacy, after the jump.

double red triangle arrows Continue reading “Biglaw Perk Watch: Adoption Benefits
(Plus an update on the gay gross-up.)

It has been a long time since our last listing of the major law firms that offer the “tax offset for domestic partner health benefits” or the “tax equalization for same-sex health benefits.” (If you’re not familiar with this benefit, also known as the “gay gross-up,” see this explanation.)

As we’ve explained before, this benefit is necessary because of the Defense of Marriage Act (DOMA). Let’s hope that this benefit is no longer necessary in the near future. This Term, the Supreme Court will rule on the constitutionality of DOMA (assuming they don’t dodge the issue on jurisdictional grounds). If SCOTUS goes the way of the lower courts, DOMA will go down, and the gay gross-up won’t be needed.

In the meantime, though, the benefit is needed. Let’s take a look at which firms should be added to our list….

double red triangle arrows Continue reading “Biglaw Perk Watch: Tax Equalization for Same-Sex Health Benefits”

I’m a week late in reminiscing about 2012, but what can I say? I’m a step slow; you’ll just have to excuse me. These are some of the memorable things I heard during the last year.

First, an employment lawyer who recently moved from the United States to the United Kingdom:

“What’s the correct way to refer to black people over here?”

“Excuse me?”

“In the United States, we refer to black people as ‘African-Americans.’ But you must have a different word for black people over here in England. Those people aren’t Americans, so they can’t be African-Americans.”

“We call blacks ‘blacks.’”

Second, a senior partner who serves on the executive committee of his Am Law 20 firm:

double red triangle arrows Continue reading “Inside Straight: The Best Things I Heard in 2012″

Marathons and triathlons are so passé. They’re just not thrilling enough; you need an endurance event that’s going to make you feel truly alive. Enter Tough Mudder, a 10 to 12 mile obstacle course designed to test participants’ all-around strength, stamina, mental grit, and camaraderie. This isn’t a race, it’s a challenge, and participants are greeted upon entry with an ominous sign that reads, “Remember You Signed a Death Waiver.”

If you choose to sign up for one of these events, some of the extreme challenges you’ll experience include trudging through a mile of waist-deep mud, sprinting through blazing fire, being submerged in ice water so cold that hypothermia is a real possibility, and running through 10,000 volts of electricity. If that sounds crazy, it’s because it is.

This is the kind of torture that could only have been dreamed up by a former Biglaw tax attorney….

double red triangle arrows Continue reading “Career Alternatives for Attorneys: Tough Mudder”

* Change may be coming soon in light of the Newtown shooting, but any talk about new federal restrictions on guns will hinge on the Supreme Court’s interpretation of the Second Amendment through the lens of the Heller case. [National Law Journal]

* Joel Sanders and the Steves are facing yet another “frivolous” lawsuit over their alleged misconduct while at the helm of the sinking S.S. Dewey, but this time in a multi-million dollar case filed by Aviva Life and Annuity over a 2010 bond offering. [Am Law Daily]

* Always a bridesmaid, never a bride: Pillsbury has had the urge to merge since February, and now the firm may finally get a chance to walk down the aisle with Dickstein Shapiro. [Thomson Reuters News & Insight]

* Income-based repayment is a bastion of hope for law school graduates drowning in student loan debt, but when the tax man commeth, and he will, you’ll quickly find out that the IRS doesn’t have IBR. [New York Times]

* Is the premise of graduating with “zero debt” from a law school that hasn’t been accredited by the ABA something that you should actually consider? Sure, if you don’t mind zero jobs. [U.S. News and World Report]

* Daniel Inouye, Hawaii’s Senate representative for five decades and a GW Law School graduate, RIP. [CNN]

Judge Lorna Schofield (S.D.N.Y.) looks like my mom. Is she as divalicious? Let’s hope!

* How much could going over the fiscal cliff cost midlevel to senior associates whose bonuses get paid in January? Here’s an estimate. [Thomson Reuters News & Insight]

* Congratulations to the newest member of the S.D.N.Y. bench: former Debevoise partner Lorna Schofield, the first person of Filipino descent to be confirmed as an Article III judge. [AABANY]

* Judges in my home state of New Jersey are always so fair-minded. Here’s a great recusal motion, directed at Judge Carol Higbee in the New Jersey Accutane mass tort case. [Reed Smith via Drug and Device Law.]

* Make sure you don’t murder any babies before signing up to meet Nancy Grace. [Charity Buzz]

* Check out Advisable, an innovative new service for helping lawyers connect with clients; it’s free and easy to join. [Advisable (description); Advisable (application form)]

* If you’re looking for a stocking stuffer (affiliate link) for a young lawyer in your life, look no further; Dan Hull has a great recommendation. [What About Clients?]

If you’re interested in Judaism, Supreme Court clerks, or both, there’s a video for you after the jump….

double red triangle arrows Continue reading “Non-Sequiturs: 12.13.12″

Non-Sequiturs: 12.12.12

* It’s 12/12/12. Or as rational people call it, “just another Wednesday already, God.” [ABC News]

* Elizabeth Warren is going to be on the Senate Banking Committee. Boom. How ya like me now. [Reuters]

* Do women make better lawyers than men? For some reason this question made me want to make a really sexist joke. But I’m afraid of being yelled at by feminists. Afraid, like a little girl. [Law Frat]

* Verizon to take on copyright trolls. I hope this leads to a commercial with that Verizon T-Mobile 4G woman playing whack-a-mole in a sun dress. [Torrent Freak]

* You know what could keep us from falling off the fiscal cliff? The death tax. Mwahahaha. [Tax Prof Blog]

* SCOTUSblog is looking to hire a good law student or LL.M. student. Qualification #1: you should probably know what SCOTUS refers to. [SCOTUSblog]

* Lindsay Lohan had her probation revoked. If you are one of the people who care about this story, thus necessitating this mention of it, I hope bad things happen to you this holiday season. I’m serious, if you care about Lindsay Lohan, I hope Santa brings you herpes. [TMZ]

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