President Barack Obama now supports marriage equality. And so do many major law firms, it seems. More than 30 top firms provide 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.)
- Bankruptcy, Biglaw, Dewey & LeBoeuf, Dissolution, Lateral Moves, Musical Chairs, Partner Issues, Tax Law
It’s time for your daily dose of Dewey & LeBoeuf news. There’s a lot to cover, including updates about incoming associates, overseas offices, and contingency planning.
Word on the street is that Dewey is deferring incoming associates to January 2013. We reached out to the firm for comment, and they haven’t gotten back to us yet. But it seems logical for the firm to defer associates to early 2013, given how the situation at D&L remains in flux. By next year, Dewey will have a better sense of its ultimate size and its long-term associate needs.
Of course, incoming associates at Dewey might want to make some backup plans. Which brings us to the other D&L news….
- Accounting / Accountants, Biglaw, Dewey & LeBoeuf, Lateral Moves, Money, Musical Chairs, Partner Issues, Partner Profits, Tax Law
Today, as you probably know, is the deadline for filing your taxes. As was the case last year, the combination of April 15 falling on a weekend and the little-known holiday of Emancipation Day pushed the filing deadline back a bit.
Did you appreciate the extra time to fill out your tax return? Partners at Dewey & LeBoeuf probably did, due to some problems with their K-1 forms.
And speaking of partners at Dewey, their numbers continue to decline. Let’s look at the latest defections, as well as the tax issue.
UPDATE (10:30 AM): The game of musical chairs continues. Six more Dewey departures, which we learned about shortly after publishing this post, after the jump.
- 4th Circuit, Benchslaps, Christopher Christie, Drinking, Job Searches, Non-Sequiturs, SCOTUS, Supreme Court, U.S. Attorneys Offices
* The “unbundling” of legal services is a big buzzword when talking about the direction of the profession. But Jordan Furlong has a question: should lawyers and law firms start thinking about “rebundling”? [Law21.ca]
* “[P]ublic drunkenness is not illegal in NYC.” (Elie will be glad to hear this.) [Gothamist]
Of all the routines in judicial gymnastics, few have a higher degree of difficulty than the reverse benchslap, and we’re trying for a combination double with our Opinion today.
(The background behind this judicial invocation of the term “reverse benchslap,” after the jump.)
If you are a wealthy American who pays the top regular income tax rate of 35%, you have terrible, awful lawyers.
Mitt Romney does not have terrible lawyers.
The news of the day is that GOP frontrunner Romney released the previous two years of his tax returns. Romney’s 2010 adjusted gross income was $21,661,344. His estimated AGI for 2011 is $20,901,075. If all of that income was taxed at the highest tax rate, Romney would be paying around $7 million in federal taxes. But only true idiots and Republicans trying to scare people in election years actually believe that wealthy people pay anything approaching a 35% income tax in this country. Instead, Romney’s effective tax rate was about 14% in 2010 and is estimated to be around 15% in 2011. My effective tax rate was higher than Mitt Romney’s in 2010, and I don’t even get to like firing people.
But Romney is trying to spin his tax returns as an example of how “complicated” that tax code is. And the mainstream media is overwhelmed and helping to push that line. But these taxes are not complicated for a tax lawyer — and when you make $20 million a year, you can afford some good ones, so doing your taxes is about as complicated as writing a check for legal fees…
- Biglaw, Crime, Gay, Money, Partner Issues, Partner Profits, Sentencing Law, Tax Law, Weirdness, White-Collar Crime
Last August, John J. O’Brien, who was once a highly regarded and well-liked partner in the celebrated M&A practice of Sullivan & Cromwell, pleaded guilty to four misdemeanor tax offenses. The charges of conviction were mere misdemeanors, but the amounts involved were large, as you’d expect from a well-paid partner at S&C.
O’Brien was accused of failing to file income-tax returns for tax years 2001 to 2008, on almost $11 million in partnership income. In the end, he pleaded guilty to failing to file taxes relating to $9.2 million in partnership income, for tax years 2003 to 2008.
Earlier today, John O’Brien was sentenced. The sentencing hearing provided some interesting additional information about why O’Brien acted as he did.
So is O’Brien trading Biglaw for the Big House? And if so, how long a sentence did he receive?
On the surface, it seems to make sense; it sounds like it should be true. For some, it might even be true. After all, the last time we used quadratic equations was back when loafers on bare feet were considered desirable footwear (thanks Don Johnson).
In-house lawyers should never, ever say they’re bad at math — even those who really are. After all, business people are preoccupied with numbers. As an in-house lawyer, telling a business person that you’re bad at math is like telling them you don’t care about the most important thing that everyone else in your company cares about, and if your company is publicly listed, what every investor in your company cares about — the company’s numbers….
* It’d be easy to say “a former Tea Party candidate posted about assassinating the President.” But it’s probably more accurate to say a crazy, racist, loony person scrawled something naughty on Facebook and is now in trouble. [Huffington Post]
* I’d like to buy this, and then use it to TP Herman Cain’s house while screaming, “It’s less complicated than your sex life!” [Tax Prof Blog]
* I wonder if, a generation from now, people will look back on Citizens United like Plessy v. Ferguson. Like, there will still be a few holdouts saying, “money is speech now, money is speech forever,” but most of society will have moved on to a more enlightened state. [Congressman John Yarmuth]
* Maybe all we need is a simple Constitutional amendment clarifying that “only people are people.” Corporations are not people. Animals are not people. Artificially intelligent robots who one day rise up to threaten humanity’s existence are not people. [Miller-McCune]
* Oh, Kobe. When you beat a rape rap yet still have to publicly admit you bang hoteliers in Vail, you should just get divorced right then and there. No number of diamond nor championship rings is going to put that back together. She’s still going to kill you in the divorce, and all you’ve bought yourself is a few extra years of living with a woman who openly hates you. [L.A. Now via ABA Journal]
* You think bloggers suffer from group think too much? I vote for 2012 being the year when the mainstream media stops stealing story ideas from the blogs (without credit), and does some actual original reporting again. You know, like they are supposed to with their huge staffs and massive budgets. [What About Clients?]