Thursday, December 27, 2012
As we move into the final days of 2012, the fiscal cliff talks and the end of Bush-era tax cuts have created a great amount of work for attorneys whose clients are looking to take advantage of more favorable tax rates. As one attorney noted, while there is are usually end of the year tax planning, this year is a different because of the uncertainty created by the fiscal cliff. Unfortunately, without clear guidance, attorneys must plan for the worst.
According to a partner at McDermott, Will & Emery in New York, Henry Christensen III, attorneys are "working around the clock and on the weekends to help their clients finish transactions before the year's end." Mr. Christensen noted "that the lack of guidance on state income tax reduction has been disruptive for businesses." He believed that the uncertainty here will likely cause some businesses to move to states without an state income tax, which could adversely affect states like New York and California, who still have a state income tax.
See Matthew Huisman, Fiscal Cliff Uncertainty Creates Flood Work For Attorneys, The National Law Journal, Dec. 14, 2012.