- Create unnecessary complexity in the tax law and increase compliance costs.
- Impose new financial burdens on many law firms and other personal service businesses by requiring them to pay taxes on income they have not yet received and might never receive.
- Cause the legal profession to suffer even greater financial hardships than other professions because many lawyers and law firms are not paid by their clients until long after the work is performed.
- Lead to economic distortions that would adversely affect all law firms and other personal service businesses that currently use the cash method of accounting.
- Discourage individual professional service providers from joining with other providers to create or expand a firm because it could trigger the costly accrual accounting requirement.
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