Practice News

Q. I’m moving offices and would like to get rid of a bunch of old financial records and billing sheets. Can I?

A. Supreme Court Rule 769 requires that it is the duty of every lawyer to maintain for a minimum of seven years originals, copies, or computer generated images of: all financial records related to an attorney’s practice including bank statements, time and billing records, checks, check stubs, journals, ledgers, audits, financial statements, tax returns and tax reports. See also ISBA Professional Conduct Advisory Opinion 12-06. That Opinion presents a number of other considerations that might suggest keeping records even longer than seven years.

ISBA members can browse past ISBA Ethics Opinions, access our Ethics Hotline, and other resources on the ISBA Ethics Page.

Disclaimer.  These questions are representative of calls received on the ISBA’s ethics hotline.  The information provided below is meant as an educational tool to highlight potentially applicable Illinois RPC or other ethics resources that might help the lawyer answer the question posed.  The information provided isn’t legal advice.  Because every situation is different, often complex, and the law is constantly evolving, you shouldn’t rely upon this general information without conducting your own research.

The Illinois Department of Revenue’s web portal for business incentives reporting is now up and available for use.

Please see the attached bulletin from the Illinois Department of Revenue regarding important changes to the reporting requirements.

Public Act 98-0109 made changes to the business incentives reporting requirements originally outlined in Public Act 97-905.

• Holders of sales tax exemption certificates from IDOR issued for the period beginning July 1, 2013, must file a report.
• Enterprise Zone and River Edge Redevelopment Zone administrators no longer are required to file reports.
• The deadline to file reports for all of those required to do so has been changed to May 31(previously the end of March).

More detailed information is available at IDOR’s web site, tax.illinois.gov. and clicking on “Business Incentives” on the left side of the page.

ISBA Director of Legislative Affairs Jim Covington reviews legislation in Springfield of interest to ISBA members. In this episode he covers Parenting time (House Bill 5425), Parenting time (House Bill 1452), Constitutional amendment and victims’ rights. (HJRCA 1), Workers’ Compensation Act (Senate Bill 3287) and Sale of distressed condominium units (Senate Bill 2664). More information on each bill is available below the video.

Asked and Answered

By John W. Olmstead, MBA, Ph.D, CMC

Q. I am the managing partner of a 16 attorney insurance defense law firm in Kansas City. We have two equity partners, four non-equity partners, and 10 associates. Only the two equity partners bring in client business. Since our clients are insurance companies, most of our work is new business from existing clients. Unlike other firms doing insurance defense work our billing rates are low and we have to put in a lot of billable hours and maintain a high ratio of associates and non-equity partners to equity partners.

In the past our associates stayed for a while and left after several years. By the time they reached the higher compensation levels they left and we replaced them with lower cost associates. In the last few years - with the economy and the oversupply of lawyers - they are staying much longer. We are concerned about our reducing profit margins and at what point an associate or non-equity partner's compensation is "maxed out." We would appreciate your thoughts.