Estimating taxes for law firm partners
Abstract: Law firm partners need to estimate their tax liabilities as accurately as possible — particulary since, as members of a “pass-through” entity, they’ll personally owe tax on their pro rata share of the firm’s taxable income. If they underpay, they’ll be subject to penalties. If they overpay, they’re essentially making an interest-free loan to the IRS. This article explains how to achieve the right balance when calculating and paying taxes.