July 22, 2018

Accounting Firm Partners Everywhere Managing Expectations at Home

tax-reform-cpa-skeptical-cat-crop

CPAs’ cats everywhere are all like…

It’s been a wild week in the tax world, even if it’s mostly been bluster. Talk of tax cuts has corporate executives, rich people, and sitting U.S. Presidents all hot and bothered. But it probably has a lot of accounting firm partners fantasizing too, not only because they’re dreaming of the fees they’d rake in but because accounting firms, virtually all of them pass-through entities, themselves would benefit.

Buried in this Wall Street Journal article on the risks of big tax-rate differentials between individuals and business is a quote from a CPA that serves as evidence of this.

One adviser to hedge funds, Michael Laveman of accounting firm EisnerAmper LLP, said the proposal would act as a tax cut for hedge-fund owners who share management fee income. Management fees, he said, are typically taxed at the current top 39.6% rate.

Mr. Laveman’s own firm, also a partnership, would be among the beneficiaries. “I’m trying not to tell my wife about the huge tax break we are about to get,” he said.

I think there are a few ways of interpreting this: 1) Mr. Laveman is super excited and doesn’t want to get Mrs. Laveman’s hopes up yet; 2) Mr. Laveman is pessimistic about the tax reform bullet points’ chances and doesn’t want to get Mrs. Lavemean’s hopes up; 3) Mrs. Laveman is the level-headed one, will tell Mr. Laveman that Trump is an idiot and that no one is going to go for this cockamamie plan, crushing his spirit.

I imagine the conversation around CPAs’ dinner tables is riveting this week.

[WSJ]

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BDO, Looking to Spread Out Some Liability, Admits New Partners

BDO_International.pngAs you probably know, BDO Seidman is having a rough year. Tax shelter prosecutions and trials for the International Global Coordination firm that now falls on the U.S. make for some big liability exposure.
The obvious solution to this conundrum? Spreading the love!

BDO Seidman, LLP, is pleased to announce that 10 new partners have been admitted to the partnership, effective July 1, 2009. Five of the new partners are in the tax practice, four are in the assurance business line and one is in BDO Consulting. BDO Seidman, LLP is a leading national professional services firm providing assurance, tax, financial advisory and consulting services to private and publicly traded businesses.”I am very proud to welcome each of these very deserving individuals to our partnership,” said Jack Weisbaum, CEO of BDO Seidman. “The key to maintaining momentum in our profession is a commitment to recruiting, training and retaining superior client service professionals. Each of these new partners is an example of our commitment to human capital development.”

What are the chances that these new partners are some of the most hated people in the firm? C’mon, $520 million judgment hanging out there, the bigwigs have to be thinking, “well, as long as we’re screwed, we may as well stick it to some people within the firm we don’t like.”
Congrats to the new partners!

BDO Seidman, LLP, Admits 10 New Partners
[BDO Seidman Press Release]

Grant Thornton Spreads Out the Liability, Admits Nineteen New Partners

grant-thornton-logo-with-rose.jpgNineteen individuals have proven their passion for the business of accounting (as well as an intrepid attitude towards liability) as G to the T admitted new partners and directors effective August 1.
The press release is your standard trite lexicon but we can’t help but notice GT taking the opportunity to slip in their favorite moniker, “Global 6 accounting organization” or a derivative of such. GT is bound and determined to get this to catch fire even though no one outside of the GT press team has probably uttered the phrase.
Grant Thornton LLP admits 19 new partners and principals to the firm [Press Release]