Minnesota State Bar Association

Business Law Section

Report and Recommendation

December 11, 2013

 

 

Resolution

RESOLVED, that the Business Law Section recommends the Minnesota State Bar Association oppose federal legislation that requires law firms and other personal service businesses that now compute taxable income on the cash receipts and disbursements method to convert to the accrual method of accounting.

Report

The MSBA recently learned of this federal legislation from the ABA which adopted a position at its November 16, 2013 Board of Governors meeting.  The MSBA asked the Business Law Section to review this proposal and, if appropriate, bring a resolution to the MSBA Assembly.  The Business Law Section discussed this issue at it December 11 meeting and adopted this recommendation.

The attached report from the ABA provides background information on this resolution.