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The New York state Tax Appeals Tribunal has shot down a time-honored practice among New York City personal injury firms where, for tax purposes, associates who refer cases to their own firms are treated as independent contractors. In Matter of Fuchsberg & Fuchsberg the tribunal found that the firm must withhold and remit income taxes for associates who are rewarded for referrals and that federal "safe harbor" provisions do not shield the firm from liability.
October 01, 2003 at 12:00 AM
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The original version of this story was published on Law.Com
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