Many of the things I enjoy in life (smoking, drinking, kicking children who speak out of turn) are either illegal or subject to a sin tax. Luckily, most of the laws against my illegal vices are unenforceable if I commit infractions discretely. (“I don’t know what happened to little Jimmy. He must have fallen onto my foot.”) But I can’t avoid sin taxes — and thus I can’t stand them.
First of all, they are regressive. Secondly, they’re anti-business. So we literally have a tax regime that freedom-loving progressives and money-loving conservatives should hate, and yet sin taxes continue to be an acceptable way for the government to shove its morality down our throats.
The Texas Supreme Court is wrestling with just such a question of morality versus freedom and money. Specifically, it’s a battle between morality and the freedom to stuff money into a g-string. The Austin-American Statesman reports:
Is exotic dancing, performed partially clothed or fully nude, a form of free speech protected by the U.S. Constitution?
Strip club owners insist that it is, and on Thursday they asked the Texas Supreme Court to strike down the state’s $5-per-patron tax as an unconstitutional limit on free expression.
Of course, proponents of the tax can’t just come out and say “we hate men who like to look at nude women.” Check out the hook they’re trying to hang their abuse of legislative power on…
‘Tis the season for… W-2s. When you get that handy-dandy form from your employer, we suggest that you file it with your federal income tax return — in timely fashion. [FN1]
And don’t forget to file any applicable state and local tax returns, too. Otherwise you could find yourself in deep doo-doo. From the Long Island Press:
Three attorneys, an accountant and a doctor were arrested Tuesday for failing to file a combined total of more than $365,000 in state personal income taxes, Nassau prosecutors said. The arrests were part of a statewide sweep by the New York State Department of Taxation and Finance (NYSDTF).
Arresting someone on a failure-to-file charge? Seems a bit extreme. But if the authorities wanted to send a message about how seriously they take tax crimes, they succeeded.
The attorneys who were charged with failure to file a personal income tax return include 47-year-old David Mollon of Great Neck, 50-year-old Kelly Talcott of Sea Cliff and Dennis O’Leary, 57, of Westbury. Facing the same charge is 53-year-old Gerald Gartner of Lawrence, a certified public accountant, and 62-year-old Avelino Rosales of Cedarhurst, a physician.
O’Leary is a personal injury lawyer — res ipsa loquitur. But Mollon and Talcott are (or were) partners at large law firms, places whose names you’d recognize.
Find out which firms, as well as how much Mollon and Talcott earned during the tax years in question, after the jump.
Back in April, we wondered about the departure from Sullivan & Cromwell of John O’Brien, a highly regarded and well-liked corporate partner who focused on M&A work. This development captured our interest because it’s unusual for lawyers to leave the (highly lucrative) partnership of a top firm like S&C.
When partners leave a place like Sullivan & Cromwell, there’s often a story behind the departure. E.g., Carlos Spinelli-Noseda (partner left S&C after billing clients and firm for more than $500,000 in fraudulent travel and entertainment expenses).
In addition, word on the street was that O’Brien was escorted from the building by security personnel. Partners are being asked to leave their firms with increasing frequency during the recession — but they’re not usually walked out by muscle.
In a speech last night before the American Academy of Arts and Sciences, the chief justice of the California Supreme Court, Ronald M. George, criticized his state’s reliance on the initiative process. His remarks focused on how that process, direct democracy taken to the extreme, has paralyzed state government, especially when it comes to fiscal matters.
Let’s push forward with our series of open threads on small law firms in different practice areas. To see what we’ve covered so far, click here and scroll down.
Today’s topic: ERISA LAW. For those of you who aren’t familiar with ERISA, we’ll quote a prior post of ours:
For all of you non-lawyers — or for those of you who sat in the back row in law school — ERISA stands for the “Employee Retirement Income Security Act.” It’s the federal law, originally passed in 1974 and subsequently amended, that governs the administration of pension and employee benefit plans. So yes, it’s pension law.
We continue our series of open threads about small law firms focused on different areas of practice. In light of the turmoil being experienced by Biglaw, as well as the many laid-off lawyers and job-hunting law students looking for other opportunities, now is an excellent time to look beyond large law firms.
Today we turn our attention to TRUSTS AND ESTATES. What is it like to work at a small (or at least non-big) firm focused on T&E work? What are your hours like? Your compensation? What do you like the most — and the least — about your job?
Please discuss, in the comments.
Speaking of trusts and estates, at the recent Lavender Law conference we attended a workshop on advanced estate planning. The panelists offered advice that might be helpful to people who practice in, or aspire to practice in, trusts and estates.
Read about it, after the jump.
If the power to tax is the power to destroy, then shouldn’t we at least try taxing stupidity? They’re thinking about doing it in France. From Going Concern:
Our frog eating friends have decided that they will start taxing people for their stupidity:
“The French Foreign Ministry is proposing a very narrow law requiring citizens foolish enough to wander into international danger zones, regardless of public warnings, to pay at least part of the cost of their own rescue.”
If you wander up a silly mountain and get stuck, it is civilized to have somebody go and try to find you even it was your own damn fault. But that doesn’t mean society should have to foot the entire bill for your weekend warrior shenanigans. Right?
Click on the link below to read — and comment on — the full post. The Solution to All Our Fiscal Problems [Going Concern]
All the attention recently showered upon Harvard celebrity professor Henry Louis Gates since his arrest earlier this month has resulted in the discovery of tax problems at a foundation he created and oversees.
Read more and comment over at Going Concern. Henry Louis Gates Can’t Catch a Break [Going Concern]
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past seven years. You can reach them by email: email@example.com.
Things have changed recently in Korea – a few of our US and UK client firms are looking, very selectively, for a lateral US associate hire. Until just recently, there was not much hiring like this going on in Korea, since US and UK firms started opening offices there. We have already placed two US associates in Korea in the past month at top firms. Most of the hiring partners we work with in Korea do not actively work with other recruiters.
If you are a Korean fluent US associate in London, New York or another major US market, 2nd to 6th year, at a top 20 firm, with cap markets or M&A focus (or mix), or project finance background, and you are interested in lateraling to Korea to a top US or UK firm, please feel free to reach out to us at firstname.lastname@example.org or email@example.com. Our head of Asia, Evan Jowers, was just in Korea recently, and Evan and Robert Kinney will be in Korea in a few weeks. We are in the process of helping several firms open new offices in Korea (a number of which are interviewing our partner level candidates) and also helping existing offices there fill openings.
Professor Joel P. Trachtman has developed a unique, practical guide to help lawyers analyze, argue, and write effectively.
The Tools of Argument: How the Best Lawyers Think, Argue, and Win is a highly readable 200-page book, available for about $10 in paperback or e-book. Chapters focus on foundational principles in legal argument: procedure, interpretation of contracts and statutes, use of evidence, and more. The material covered is taught only implicitly in law school. Yet, when up-and-coming attorneys master these straightforward tools, they will think and argue like the best lawyers.
For most attorneys, time spent managing the books is a necessary evil at best. Yet it is undeniably a crucial aspect of running a successful practice. With that in mind, we invite you to view or download a free webinar by Above the Law and our friends at Clio to learn how to better manage your finances.
Take this opportunity to learn what it takes to streamline your accounting and get the most out of your time. The webinar agenda:
● The basics of accounting for lawyers.
● How legal accounting differs from regular accounting.
● Report and reconciliation issues surrounding trust accounts.
● How to pick and integrate the best accounting tools for your practice.
● Steps to prepare your tax return for your firm’s income.
Do not miss this crucial chance to optimize your accounting practices. Save time and get back to billing!